In the second half of 2022, the UBC FPP Board reviewed opportunities to diversify the current structure of the UBC FPP Fossil Fuel Free Equity and Bond Fund. Since its inception in April 2020, the fund has grown to a stable size that allows it to be further diversified. After reviewing various diversification options, the decision was made to add Phillips, Hager & North Investment Management Ltd. (PH&N) to share management of the assets with Jarislowsky Fraser. This change improves the overall risk profile of the Fossil Fuel Free Equity and Bond Fund. The fund’s strategic asset mix will remain unchanged and is shown in the chart below.
The assets were divided equally between the two managers in mid-January 2023. The portfolio summary sheet for PH&N will be available on the Investment Options page at the beginning of May.
Impact on fees
The addition of PH&N will marginally increase the management fees for this fund by 0.03%. The Board carefully considers the impact on fees when they make decisions about the Plan’s investments. While fees do matter, it is important to focus on the investment return net of all fees. These changes were made to improve the expected future net returns for the fund. For current fee information, sign in to your member account at mysunlife.ca/ubcfpp, then Under Investments, select Manage plan > my plan > Plan overview > Account fees.