The CPP Investment Board uses a total portfolio approach as an overall principle for how we design the portfolio and how we make investment decisions. This approach focuses on the risk/return characteristics of the investments rather than traditional asset labels. By seeking diversification by risk and return streams rather than asset classes, we believe we can better manage portfolio risk and achieve potentially superior investment returns.
This approach leads us to make decisions in the context of the characteristics and performance of the total fund, hence the name Total Portfolio Approach. We believe it promotes better investment decision-making.