Strategic asset allocation is a long-term approach that keeps the Desjardins Group Pension Plan (DGPP) in a strong financial position and maintains stable returns, regardless of the economic environment.
Strengthening the plan over the long term
Strategic asset allocation is based on a long-term vision that keeps the plan strong in various economic scenarios, both now and in the future.
It involves dividing investments among different asset classes, regions and sectors to increase diversification and reduce risk.
We regularly and proactively review our strategy to support the DGPP’s financial stability and long-term goals. |
|
|
A regulated strategy that’s reassessed annually
In accordance with legal requirements, the DGPP’s investment policy takes into account the plan’s features and commitments. This policy sets out investment objectives, strategies and guidelines as well as monitoring procedures.
The investment policy, including the asset class allocation target, is reviewed annually to make sure it remains aligned with the plan’s financial position and market developments.
|
|  |
2 complementary portfolios
The plan’s assets are divided into 2 complementary portfolios with different goals. Each portfolio includes various asset classes that are chosen to help the plan reach its targets. Together, they contribute to the DGPP’s financial health.
Matching portfolio
The matching portfolio is the foundation of the plan. It consists mainly of bonds and fixed-income securities.
Its role is to evolve in line with the plan’s liabilities—the value of the pension payments promised to plan members. It also helps reduce the impact of interest rate fluctuations, which is one of the biggest risks for a pension plan.
The matching portfolio allows the DGPP to maintain sufficient assets to cover its liabilities, even in volatile markets. It contributes directly to the plan’s financial stability, year after year.
Asset classes and their roles
This portfolio relies on asset classes and strategies designed to balance assets and liabilities, which is especially important when interest rates are fluctuating.
Fixed income
Align the value and sensitivity of assets with liabilities to protect the plan from interest rate fluctuations.
Bond overlay
Use derivatives strategies to adjust the target matching level without allocating all the capital from the performance portfolio.
Performance portfolio
The performance portfolio includes investments that are intended to generate long-term returns. It plays a key role in supporting the growth of the plan so we can maintain contributions at a reasonable level for plan members and employers.
The performance portfolio complements the matching portfolio and enables the DGPP to take advantage of market opportunities while staying true to its long-term vision.
Asset classes and their roles
This portfolio is made up of several asset classes. Each asset class plays a complementary role in generating returns, diversifying and managing risk.
Public equity
Take advantage of the stock market’s expected long-term returns and ensure access to emergency liquidity.
Infrastructure
Generate high, predictable regular income while offering inflation protection.
Real estate
Acquire real estate assets whose total return is mostly based on current income, combined with growth potential and sensitivity to inflation.
Private equity
Expose the portfolio to economic growth and higher potential returns, rounding out public equity through a focus on company size and liquidity premiums.
Private debt
Take advantage of the subprime market’s credit and liquidity risk premium, and consider all innovation opportunities that could improve the overall portfolio’s risk-adjusted performance.
Global presence
The DGPP’s global presence helps it to identify high-potential investment opportunities and collaborate with leading partners.
In a market where there’s fierce competition for high-quality assets, we stand out thanks to our well-established network of partners worldwide, with whom we make diversified investments.
Geographic exposure