Why and how do the trustees make allocations of asset investment areas?
A. Two key characteristics need to be considered with any portfolio: expected returns and exposure to risks. Investment theory and history hold that you can sustain a higher expected level of return for any level of risk by maintaining a diversified portfolio. (History shows that no single approach to the markets works consistently.) Trustees subscribes to this approach and, with the help of our consultants and managers, reviews the risk/reward characteristics of the portfolio each quarter. As the Fund grows, it provides us with additional opportunities to diversify; e.g. into new sectors and differing sizes of companies. The objective of diversification is to provide unitholders with higher levels of returns for appropriate levels of risk.
