Return enhancing investments

Return Enhancing investments offer the potential for higher returns. Investments include public equities - large, small, mid- cap, domestic and international, developed and emerging markets and private equities. They include:

Private Equity
Private Equity consists of equities that are invested in private companies not publicly traded on a stock exchange. These investments offer increased portfolio diversification and are expected to yield enhanced returns over liability hedging assets.

Domestic Equities
Domestic Equities include investments in a range of public equities (large, small, mid-cap) traded on the Canadian market. These investments offer increased portfolio diversification and are expected to yield enhanced returns over liability hedging assets.

Global and Emerging Market Equities
Global Equities include investments in a variety of public equities in developed and emerging market countries around the world. These investments offer increased portfolio diversification and are expected to yield enhanced returns over liability hedging assets.

Our ultimate goal is to enhance returns while remaining consistent with our governing policies. The Plan's asset mix policy is fundamental to the strategic decisions made by the Plan's investment team and external investment managers.

The goal of the CAAT Plan fund is to earn a net real return rate of 4.5% over long term periods of at least 10 years. Investment results are reported annually, providing a clear picture of long-term performance. For pension funds, long-term performance is more significant than short term numbers.