Each year, the Board of Pensions releases the Investment Review, which discusses the investment results of the Balanced Investment Portfolio for the previous year. The portfolio is the investment fund for the Defined Benefit Pension Plan, Financial Protection Programs, Endowment Fund, and Assistance Program assets.
2022 was a tumultuous year for investments, with volatile global markets and dramatic geopolitical events. Most notably, Russia invaded Ukraine and the world began a wobbly post-COVID-19 reopening. Despite the tumult, however, the Board of Pensions Balanced Investment Portfolio held its own.
The Balanced Investment Portfolio turned in a performance of negative 11.6 percent, but it consistently outperformed a blended relative benchmark of index funds, reflecting the agency’s disciplined approach to asset allocation. The portfolio closed 2022 with a market value of $10.4 billion.
The Board adheres to a long-term investment horizon. By looking forward, through near-term volatility and market turmoil, the agency can maintain or add to growth assets, such as stocks, when other investors need to stay defensive.
For more information on this investing perspective, read the 2022 Investment Review. It also holds details on the portfolio returns and asset allocations as of December 31, 2022.
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 700 investor signatories from dozens of countries that manage assets totaling more than $68 trillion.