Asset management strategy for the participating account
Participating account target range
Role of the dividend scale interest rate
The dividend scale interest rate is one of the factors used to calculate the dividends and track investment returns. It’s not the same as the growth rate that applies directly to your insurance policy.
To minimize the impact of market fluctuations, we use a smoothing technique that involves spreading investment gains and losses over several years. This method helps stabilize the credited dividends and the dividend scale interest rate.
Solid financial performance
In addition to the smoothing technique used to mitigate annual fluctuations in credited dividends, the long-term stability of the dividend scale interest rate also depends on a robust portfolio mix12 that uses asset class diversification to reduce volatility.
* Private debt is both a form of fixed income and a subcategory of alternative investments. The type of private debt included in the portfolio gives it an expected return/risk profile closer to the other lines of the alternative investments block of the portfolio than to those in the fixed income block.
** Range adopted during the recent review of the strategic asset allocation.
12 Refer to the Investment Strategy for Participating Accounts brochure.