Message From The President Highlights It's A Defined Benefit Plan Sources Of Funding Buyer Beware Cost-Of-Living Adjustments Membership Benefit Changes Pension Commmittee Investment Committee Asset Mix Investments At December 31, 2000 Asset Types Investment Managers Custodian/Trustee Pension Plan Performance Financial Statements

You are in: The Plan : Publications : 2000 Annual Report : Asset Mix   Asset Mix The MTS Pension Plan has invested in a diversified portfolio of stocks, bonds, and other assets because diversification – not putting all your eggs in one basket – is a fundamental principal of investing. If one type of investment performs poorly, a gain in another asset type can offset the loss. Over time, a diversified mix of equities, bonds and short term investments is a strategy with an excellent opportunity of providing good returns while minimizing risk. The portion of the fund invested in each type of asset (Canadian equities, Canadian bonds, global equities, real estate, etc.) is referred to as the "asset mix". In some economic times it is better to have a portfolio that is weighted toward equities. In other economic cycles better returns are achieved with a diversified portfolio weighted toward bonds. The Investment Committee is responsible for determining the asset mix guidelines for the MTS Pension Plan. During 2000, the Committee undertook a study to determine the most appropriate asset mix. As a result of the study and as permitted by recent legislative changes, the Committee revised the asset mix guidelines to permit more investment in global equities. By increasing the limit on these investments, the Committee has introduced more diversity into the portfolio with the intent of achieving better returns at a lower risk. Copyright 2004. All rights reserved.