Inflation Sensitive Assets

Inflation sensitive assets are those assets that are expected to partially mitigate the risk of unexpected inflation. This is an important consideration for ATRF given that pension benefits under the plans are 70% indexed to inflation. While it is impossible to perfectly protect investment returns from inflation, the returns on assets in this category are typically at least partially correlated with inflation rates over the long term. ATRF includes both real estate and infrastructure in this asset category.