Long-Term Investment Objectives

The primary long-term investment objective of the fund is to meet the real rate of return target above Alberta inflation. This target is an essential long-term assumption in determining the funding requirements of the plans to ensure that plan benefits are funded in accordance with the established funding structure. This long-term investment objective is measured starting September 1, 1992, when the plan sponsors agreed to the current funding structure of the plans.  Currently, the long-term rate of return target is 4.25% above the level of Alberta inflation.

Over the past 15 years, since September 1, 1992, the fund’s investment performance has surpassed the long-term objective. The annualized rate of return objective over this period has been 6.9% per year, which the fund has surpassed by 1.9% per year with an annualized performance of 8.8% per year.