Each year, the Board of Pensions releases the Investment Review, which discusses the investment results of the Balanced Investment Portfolio for the previous year. This portfolio contains the assets for the Pension Plan and the Death and Disability Plan.
Markets in 2020 reflected the global uncertainty around COVID-19. They reacted to the mounting cries for racial justice and to a bitterly divided U.S. electorate. Despite the markets’ volatility, the Board of Pensions Balanced Investment Portfolio performed well.
Long-term returns remained strong, upholding the Board’s commitment to providing benefits. The portfolio returned 13.6 percent on investments for the year. It opened 2020 with a market value of $10.2 billion and closed the year with $11.1 billion in assets after paying benefits of over $400 million.
The Board of Pensions takes a disciplined approach to asset allocation and wields its long-term investment horizon to navigate volatile markets. For more information on this investing perspective, read the 2020 Investment Review. It also holds details on the portfolio returns and asset allocation as of December 31, 2020.
The investment objective of the portfolio is to maximize the total return on investments while maintaining prudent levels of risk throughout diverse economic and market conditions. The long-term goal is to achieve a total return on assets that enables the Board to maintain and increase pension and death and disability benefits.
The Board retains investment managers for each asset class in the portfolio, which is broadly diversified. The asset classes include U.S. and international stocks, bonds, and partnerships investing in private equity, natural resources, and other investments.
While adhering to its fiduciary duty to its members, the Board currently follows all General Assembly guidelines concerning socially screened investments. In 2017, the Board significantly expanded its commitment to environmentally responsible investing through a fossil fuel-free portfolio, and in 2019, became a proud investor signatory of Climate Action 100+. The Board is among more than 320 investor signatories from dozens of countries that manage assets totaling more than $33 trillion.