With a preliminary value of US$74.2 billion as of 30 September 2022, the situation of the portfolio shows a preliminary decrease of 18.73% since 1 January 2022. The situation of the markets remains very volatile and extraordinary in many respects, with US and global equity and bond markets concomitantly affected by negative returns, as shown in the below charts.

In this context, the behavior of the Fund’s portfolio of public equities is consistent with the markets’ evolution. However, the Fund’s bonds portfolio has performed relatively better than the markets. The main reason behind this performance was the tactical decision, endorsed by the Investments Committee earlier this year, to hold around 6% of the Fund’s assets in cash during the first 9 months of 2022, to avoid losses and have adequate liquidity.

Overall, the value of the Fund’s portfolio decreased less than the compounded effect of the equity and bond markets. This is because of the strategic decision made a decade ago and strengthened in the last few years, to diversify the Fund’s investments out of public equity markets; the Fund’s portfolio now counts 8.52% of private equity, 9.53% of real estate and 0.45% of infrastructure investments.

While the evolution of the markets remains unpredictable in the short term, the long-term solvency of the Fund was reconfirmed with the last actuarial valuation reviewed by the Pension Board at its July 2022 session.

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