Investor Presentaiton
VESTCOR
Shared Risk Plan for Certain Bargaining Employees of New Brunswick Hospitals Total Fund
Four years and four months ended December 31, 2020
3.
The Total Fund assets may be invested in unit trust funds, separate accounts, and limited partnerships, established by Vestcor to facilitate the collective
investment management and administration of these assets. The assets managed by Vestcor are held in accordance with each Total Fund's investment policy.
A complete list and description of Total Funds are available upon request.
The Shared Risk Plan for Certain Bargaining Employees of New Brunswick Hospitals Total Fund ("Total Fund") includes all discretionary assets managed by
Vestcor on behalf of the Total Fund, based on that pension plan's objective to achieve the risk management goals set out in the Funding Policy and the
regulations under the Pension Benefits Act ("PBA"). The strategy reflects the actual asset allocation approved by the Board of Trustees and outlined in the
Total Fund's Statement of Investment Policies and Goals ("SIP&G"). Long term objectives will be to not only preserve the capital value of the Pension Fund,
but also to provide the best possible long-term real return on investments while continuing to achieve the Risk Management Goals. The Total Fund has a
four-year moving average rate of return target equal to a value-added contribution of 42 basis points, after deducting all investment management costs.
Investment risks are reduced by prudent and thoughtful diversification which is achieved by investing in a variety of asset classes that are expected to
behave differently depending on the economic environment. Derivative instruments may be used to manage performance returns and mitigate market
risks such as foreign currency, interest rate and pricing risk. The Total Fund asset mix includes Canadian and global public equity, Canadian and global fixed
income, absolute return, real estate and infrastructure asset classes. A material amount of illiquid investments may be held in real estate, infrastructure,
private equity and private fixed income instruments.
The inception date of this Total Fund is September 1, 2016 and the historical results are presented on a calendar basis.
4.
Total Fund returns are calculated in Canadian dollars using the aggregate return method on a daily basis. Daily returns are linked geometrically to calculate
periodic returns. Returns include dividends net of withholding taxes, interest, as well as realized and unrealized gains and losses as of the last business day
of the reporting period. Performance returns expressed on a full gross basis are after the deduction of all trading expenses, but before the deduction of
investment management costs and custodial fees.
Under the terms of its investment management agreements, Vestcor charges for its investment management services on a cost recovery basis, allocated
prorata to its clients according to their share of Vestcor's total assets under management. Performance returns expressed on a net basis are after the
deduction of all expenses charged for the Total Fund assets under management, including trading expenses, custodial fees, and investment management
costs.
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