How We Invest

Asset Mix

The Asset Mix is the most important investment decision in constructing an institutional portfolio. The Pension Committee and Investment Committee, with support from the Pension Fund Management office and external advisors, conduct Asset-Liability Studies to determine an appropriate asset mix for the Retirement and Endowment Funds based on their respective risk and return objectives. These studies evaluate the expected long-term returns and risks associated with different asset mix alternatives, helping ensure each Fund is positioned to meet its objectives over time.

Portfolio Construction

Once an Asset-Liability study is completed, a new Statement of Investment Policies & Procedures (“SIP&P”) Asset Mix is approved and adopted.

Portfolio construction is the next step of hiring external investment managers to invest capital in each of the approved asset classes. For example, within the Infrastructure asset class there are investment managers that may focus on GDP-linked transportation assets such as toll roads, ports, and airports, or investment managers that focus on contracted revenue streams such as hydro, solar, and wind assets.

The SIP&P establishes target allocations and permissible ranges for each asset class. These ranges provide flexibility to allocate capital to the most attractive risk-adjusted opportunities across the portfolio while remaining consistent with the Fund’s long-term asset mix and investment objectives.

Implementation Costs

The final portfolio decision involves managing investment costs, often referred to as implementation style. Costs are monitored on an ongoing basis to ensure the Retirement and Endowment Funds deliver value after fees relative to the Benchmark Portfolio established in the Statement of Investment Policies and Procedures.

Each asset class is assessed against an appropriate benchmark. For example, Canadian equity managers are measured relative to the S&P/TSX Composite Index. This allows the Pension Committee and Investment Committee to evaluate whether active management is adding value after fees and expenses.

Investment costs are also monitored against institutional peers through industry surveys and benchmarking studies to ensure the Funds remain cost-effective and competitive relative to comparable institutional investors.

Investment Case Study – Real Estate

Through our strategic partnership with Westport Capital Partners, the Carleton University Retirement Fund invested in NewCold III, one of the fastest growing advanced automated warehouse and cold chain logistics companies in the world. NewCold’s facilities are the most innovative in the industry, which reduces costs, loading times, and carbon footprints. NewCold is expanding in Canada across Alberta, Ontario, and New Brunswick. Check out their Alberta expansion:

Investment Case Study – Real Estate

Through our strategic partnership with National Real Estate Advisors, the Carleton University Retirement and Endowment Funds invested alongside Sabey Data Center Properties, a leading owner, developer, and operator of data centers across North America. National and Sabey have maintained a long-standing partnership since 2010, building a diversified portfolio of mission-critical digital infrastructure assets supported by both stabilized operating facilities and future development opportunities. The platform benefits from powerful secular trends, including cloud computing, growing data consumption, and artificial intelligence, which continue to drive demand for high-quality data center capacity. This partnership provides the Funds with exposure to a critical and rapidly growing segment of the real estate market while seeking to generate attractive long-term risk-adjusted returns.

Investment Case Study – Private Equity

Through our strategic partnership with Lead Edge Capital, the Carleton University Retirement and Endowment Funds invested in Lead Edge Capital VII. Lead Edge has developed a differentiated approach to private equity centered on long‑term growth rather than traditional financial engineering. Lead Edge works directly with exceptional management teams, supporting their strategy, talent, and expansion ambitions. A defining feature of the platform is its global network of more than 700 limited partners, providing portfolio companies with access to some of the most accomplished operators, investors, and industry leaders across North America. This network‑driven model helps accelerate growth, strengthen leadership teams, and create enduring value. Check out an example of their networking in action with a Waterloo, Ontario-based company called BinSentry: