MANITOBA PUBLIC INSURANCE
AI.13
INVESTMENT REBALANCING POLICY
Effective April 19, 2010
The Investment Committee Working Group (Working Group) has the responsibility to
rebalance the portfolio according to the asset class weights outlined in the
Investment Policy Statement (IPS).
The asset class rebalancing ranges, as defined in Section 7.1 of the IPS, are as
follows:
Asset Class Group
Minimum
Target
Maximum
Cash and short‐term
Fixed Income Marketable Universe Bonds
Marketable Long‐term Bonds
Non‐Marketable Bonds
Real return Bonds
Total Debt
0.0%
1.0%
3.0%
25.0%
0.0%
15.0%
0.0%
45.0%
29.0%
10.0%
20.0%
0.0%
60.0%
40.0%
10.0%
25.0%
10.0%
88.0%
Public Equities
‐Canadian
‐U.S.
‐International
Total Public Equities
10.0%
3.0%
0.0%
15.0%
12.0%
5.0%
3.0%
20.0%
17.0%
5.0%
3.0%
25.0%
Alternative Investments
‐Canadian Real Estate
‐Private Equity*
‐Infrastructure
Total Alternative Investments
0.0%
0.0%
0.0%
0.0%
10.0%
5.0%
5.0%
20.0%
10.0%
5.0%
5.0%
20.0%
*represents net committed capital
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June 11, 2010
2011 RATE APPLICATION
Investment Rebalancing Policy–AI.13
The Working Group will monitor the target asset allocation of the fund, at a
minimum, on a fiscal quarterly basis.
Whenever an asset class is outside of its target range, it will be reported to the
Investment Committee during the Investment Activity and Performance Report.
If the weight of any asset class falls outside the allowable range, then that asset
class will be rebalanced back into the target range for that asset class within six
(6) months.
If the Working Group wishes to maintain an asset class outside of its specified
minimum-maximum range for more than six months it must report the reasons for
such variance to the Investment Committee and seek the Committee’s approval.
The Investment Committee may approve an asset class to remain outside of the
rebalancing range for a limited period of time, to be defined by the Working Group at
the time of the request, after the initial six (6) month period.
Alternative asset classes, which include real estate, private equity and infrastructure,
can be highly illiquid and costly to rebalance. Therefore, special consideration will be
given to rebalancing alternative asset classes. These asset classes will be rebalanced
on a best efforts basis based upon available liquidity in the relevant fund and the
liquidity policy of the relevant fund.
This policy will be reviewed by the Working Group annually in conjunction with the
annual review of the IPS.
If there is an inconsistency between this policy and the Corporation’s IPS, then the
terms of the IPS shall prevail.
Further, nothing in this policy shall override or
neutralize the Corporation’s obligation to comply with all applicable legislation.
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