Investment Policy

Investment Approach

The total return achieved by the Fund directly impacts the contributions required to fund the Plan. The higher the returns, the lower the contributions required from employers and employees to pay for the benefits under the Plan. That would mean that the Fund should maximize long-term gains. However, investments with the greatest long-term rates of return also experience the greatest volatility. Consequently, the Fund’s investment approach has to balance the potential for long-term gains against the short-term risk.

The Board of Trustees is responsible for establishing the Statement of Investment Policies and Goals, which, among other things, specifies the benchmark asset mix policy. This policy sets the allocation to various types of investments, such as fixed income (bonds), Canadian equities (stocks) or non-Canadian equities, and alternatives. The full background and context for the UAPP Trustees’ investment policies are provided in the Statement of Investment Policies & Goals, which can be viewed under Current Statement below.

Performance of the benchmark asset mix is used to assess the investment manager’s performance. The investment manager has the authority to add value by varying the allocation to each asset class within the prescribed range. A review of the Statement is undertaken every year and changes are made as necessary.

Statement of Investment Policies and Goals

Current Statement