Bâtirente regularly subjects its Diversified Funds to an optimization exercise aimed at reflecting the latest financial market trends in its strategic asset allocation. As we all know, the world right now is changing quickly, and the challenges are many. To keep pace with these changes, Bâtirente has adopted a fund optimization plan that specifically addresses three main priorities:
- Diversification of performance sources in fixed-income securities in the context of interest rates
- Diversification of equity investments on a global basis
- Strengthening of our funds in light of our substantial climate commitment undertaken in 2020
Over the past few months, we have taken a number of steps to meet these objectives, as described in this press release (French only). Today, Bâtirente is continuing this exercise by transferring 5% of its Diversified Funds invested in resource funds to global hedge funds, which are managed by two major Québec-based firms. The main objective for employing hedge funds is to improve diversification and ensure more independent performance that is less affected by financial market behaviour.
Doing whatever it takes to optimally allocate the capital entrusted to it by its 24,000 members, in more than 300 groups across Québec, is essential for Bâtirente, which takes its fiduciary responsibility to heart. To achieve this, Bâtirente has access to a range of top expertise in its Investment and Extrafinancial Risks Management Committee which, among other mandates, advises the Board of Directors on investment policies, regularly reviews these, and updates optimization strategies for diversified fund asset allocation. It is also responsible for adopting practices that help identify environmental, social and governance risks in investment activities, and ensuring the reduction thereof. The members of this committee as well as the composition of the Board of Directors can be found in the Organization Profile chapter of our Annual Report.
Climate change is one of the ongoing drivers of Bâtirente when it comes to sustainable investment to date. It has demonstrated its leadership on carbon footprint measurement, green bonds, shareholder engagement and the introduction of impact strategies in equity and real estate. At the end of this first half-year, the value of Bâtirente’s impact investments reached $195M.