The Saskatchewan Pension Plan is reassuring plan members its asset mix is designed to withstand shifts stemming from global disruptions and economic uncertainty.
In a new note to members, the $829-million pension fund said recent developments are creating significant economic uncertainty, with potential for higher inflation, slower growth and greater market volatility.
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It credited its balanced fund with growth stability by investing in equities across growth and value managers. The approach, it said, ensures exposure to companies with long-term growth potential and undervalued ones.
In addition to equities, this fund also invests in private assets across utilities, transportation and the energy industry, as well as counting with a fixed income allocation, which the SPP called a “defensive” component of its portfolio.
At the end of 2024, the the investment organization’s balanced fund returned 10.6 per cent. Conversely, the diversified income fund — which invests in low-risk, conservative fixed income — offered a 3.8 per cent return.
“While tariffs and global trade disruptions introduce market uncertainty, the balanced fund and diversified income fund are structured to withstand these challenges.”
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