Strategic Asset Allocation

HOW WE INVEST

Strategic Asset Allocation

(As of 30 September 2020)

Asset Classes Minimum (%) Target SAA (%) Maximum (%) Benchmark Weight** (%) Portfolio Weight (%)
Global Equities 30 45 60 57.8 57.4
Private Equity 4 9 15 5 5
Real Estate 5 12 15 7 7
Real Assets* 0 4 5 0.2 0.2
Subtotal (GROWTH ASSETS) 39 70 95 70 69.6
Global Fixed Income 10 29 40 29 28.2
Cash & Equivalents 0 1 10 1 2.2
Subtotal (NON-GROWTH ASSETS) 10 30 50 30 30.4
TOTAL 100 100 100

Note:
* Real Assets include positions in Infrastructure, Timberland, and Commodities.
** The calculation of the Policy Benchmark will be adjusted for the structural underweights in private markets asset classes (Real Estate, Private Equity, Infrastructure, Timber, etc.) during the build-out period. The policy benchmark weights correspond to the last end of month weights for the private asset classes (Private Equity, Real Estate and Real Assets). The structural underweight in those private asset classes (difference between the SAA weights and the end of month weights) is added back to the SAA global equities weight. Private market valuations are available on a 3-months lag due to the nature of this asset class.
(Data from independent Market Record Keeper – Northern Trust)