The Saskatchewan Pension Plan is allocating parts of its balanced fund to Ninepoint Partners and Fengate Asset Management in a bid to further diversify its portfolio.
Ninepoint has received a private debt allocation of 10 per cent of the SPP’s balanced fund and Fengate will take on a 10 per cent infrastructure allocation, according to a press release.
“The board considers the asset mix of the fund regularly and believes this shift will enhance returns to members while not increasing investment risk,” said Tim Calibaba, the SPP’s board chairperson, in the release. “This shift does not affect the board’s mandate to maintain an expense ratio under one per cent.”
The SPP, which has $694 million in assets under management for its 32,000 members, had a previous mix containing components that are projected to have lower longer-term rates of return and higher volatility, said the release, noting money will be shifted out of bonds and equities in order to add a private debt fund and increase the infrastructure portfolio.
The SPP board has a history of long-term relationships with its investment managers, noted the release, with TD Asset Management and its predecessors having managed all or part of the balanced fund since 1986. In 1995, a portion of the balanced fund was also shifted to Leith Wheeler Investment Counsel.