PIAC composite Asset Allocation – updated.
Yesterday, PIAC updated it’s members’ composite Asset Allocation for the year ended December 31, 2010. It looks like this:
Points of learning:
- The asset mix has changed minimally. See my June 25, 2010 post.
- Bonds are mostly Canada bonds with 5% real bonds and under 2% foreign bonds with a smidge of mortgages.
- Real assets include Real Estate, Infrastructure and Private Equity. Hedge funds are only 1.7%.
- Note the balanced allocation. See previous blogs on the benefits of a balanced fund.
- Note the diversification fo the stock allocation across Canadian and non-Canadian geographies.
If you’re investment portfolio looks ‘similar’ (not exact, but similar) to the PIAC composite average, then it’s, well, average. And that’s likely to be your experience. You will miss both the highs and lows. Returns will be middle of the pack … average. For many investors, a nice, comfortable place to be. Congratulations, you are taking advantage of lot of Institutional expertise, technology, resources, time and money spent.
Doug Cronk CFA is Manager, Investments for a Canadian Pension Plan