The Trustees of the Musicians’
Pension Fund of Canada (MPF Canada)
fully appreciate that our members are
worried in these uncertain times. We
want to assure all of you that the Fund
continues to prudently invest the Fund’s
portfolio in accordance with the
long-term nature of pension plans and
does not over-react to short-term market
The Trustees of the Musicians’ Pension Fund of Canada
and our professional advisors recently met by
video-conference to discuss the current financial market
environment impacted by the COVID-19 Pandemic and the
Fund’s investment strategy.
After carefully evaluating what impact COVID-19 might
have on the Fund, we arrived at the following
The portfolio’s diversification across multiple
asset classes (not all asset classes have been
negatively impacted) is working to mitigate the
downside volatility of the portfolio.
The pandemic will eventually run its course and
business activity will resume. At some point,
the markets begin to anticipate a recovery and
investors are attracted back to purchase
investments pushing the values higher.
Over the last number of years, the Trustees have
made strategic investment changes to the Fund’s
investments to diversify assets and to minimize
portfolio volatility. These changes are inline
with the Trustees’ vision of more stable and
less volatile long-term returns for the Fund.
We believe that a well diversified asset mix
with a long-term view can help minimize the
impact of market risk and help navigate markets
during periods of turbulence.
Stressed/dislocated markets have historically
presented long-term investors with attractive
opportunities for certain asset classes - such
as infrastructure, real estate or private
equity. The Fund includes these asset classes in
its asset mix.
The Fund’s 1, 4, 7, and 10-year rates of return
have all been positive, beating the Fund’s
benchmarks. This speaks to the long-term
viability of the Fund.
The Trustees are working diligently with their
professional advisors, which include investment
consultants, actuaries, and legal counsel, to
regularly assess risk to the Fund and to monitor
In summary, pension plans are long-term investors and
the Trustees of MPF Canada are taking a long-term view.
The Trustees remain committed to the members of the
Fund. The Fund’s mission is to administer the Plan in a
prudent manner to ensure its long-term success, to
provide the best possible retirement benefits to the
Fund’s members and beneficiaries. We will continue to
communicate with you as this situation evolves.
BOARD OF TRUSTEES
Musicians’ Pension Fund of Canada