Bâtirente is introducing a new strategy that seeks to optimize its fixed income, global equity and environmentally responsible investment allocations.
The Montreal-based pension’s new fund optimization plan specifically addresses the organization’s main priorities. By implementing the new plan, it will seek to improve its funds’ diversity in fixed income and global equities and focus on aligning all of its asset holdings with new climate commitments made last year.
In 2020, Bâtirente set out a number of climate goals it’s aiming to reach by 2025. These include a commitment to reduce fund climate risk exposure by 50 per cent as well as a plan to double investment allocations related to the transition away from fossil fuel reliance. In order to reach these goals, the optimization plan will increase Bâtirente’s allocations to environmental, social and governance-related infrastructure across all of its funds.
When it comes to diversification, the new plan aims to broaden fund investments in performance fixed income securities in order to better manage inflationary concerns. It will also seek to broaden investments in global equities. Among the first moves being made by Bâtirente is the transfer of five per cent of its allocations in diversified funds in resources to two Quebec-based hedge funds. This move is intended to help ensure that fund performance is less affected by wider market trends.