2010 asset mix changes
In 2010, OPTrust’s Investment Division continued to execute our multi-year strategy for achieving the Plan’s long-term asset mix targets. At the core of this strategy is a flexible multi-year pacing plan that establishes interim annual targets and ranges for the weighting of each portfolio. This provides our investment teams the flexibility to make new investment commitments as attractively priced opportunities arise.
Over the year, OPTrust increased funding to all four of the Plan’s alternative portfolios:
- The real estate portfolio increased to $1,419 million, up $139 million from the end of 2009.
- Net infrastructure and private equity investments grew to $648 million and $431 million, respectively. Together these portfolios accounted for 8.2% of the fund at year-end.
- OPTrust implemented the first phase of our energy commodities strategy. Valued at $389 million or 2.9% of the Fund at year-end, the portfolio was increased to 5% of plan assets in early 2011.
Under OPTrust’s long-term asset mix policy, the allocation to each of real estate, infrastructure and private equity will increase to 15% of the Total Fund.
