Equifax 2010 Annual Report Download - page 67

The Plan is prohibited from investing additional amounts in Equifax
stock once the market value of stock held by each plan exceeds
10% of the total market value of each plan. At December 31, 2010,
the USRIP’s assets included 0.4 million shares of Equifax common
stock, with a market value of $13.7 million. At December 31, 2009,
the USRIP’s assets included 0.5 million shares of Equifax common
stock, with a market value of $15.3 million. Not more than 5% of the
portfolio (at cost) shall be invested in the securities of any one issuer,
with the exceptions of Equifax common stock or other securities, and
U.S. Treasury and government agency securities.
The following asset allocation ranges and actual allocations were in
effect as of December 31, 2010 and 2009:
Actual
USRIP Range 2010 2009
Large-Cap Equity 10%–35% 16.6% 14.7%
Small- and Mid-Cap Equity 0%–15% 5.2% 4.9%
International Equity 10%–30% 13.7% 15.5%
Private Equity 2%–10% 6.1% 5.6%
Hedge Funds 10%–30% 18.0% 14.2%
Real Assets 2%–10% 6.3% 6.0%
Fixed Income 15%–40% 33.1% 27.9%
Cash 0%–15% 1.0% 11.2%
CRIP Investment and Asset Allocation Strategies. The Pension
Committee of the CRIP has retained an investment manager who has
the discretion to invest in various asset classes with the care, skill,
and diligence expected of professional prudence. The CRIP has a
separate custodian of those assets, which are held in various
segregated pooled funds. The Pension Committee maintains an
investment policy for the CRIP, which imposes certain limitations and
restrictions regarding allowable types of investments. The current
investment policy imposes those restrictions on investments or
transactions such as (1) Equifax common stock or securities, except
as might be incidental to any pooled funds which the plan may have,
(2) commodities or loans, (3) short sales and the use of margin
accounts, (4) put and call options, (5) private placements, and
(6) transactions which are ‘‘related-party’’ in nature as specified by
the Canadian Pension Benefits Standards Act and its regulations.
Each pooled fund is associated with an asset classification, which
has a primary investment objective. The objective for each asset
class is related to a standard investment index and to a period of
four-years. The following includes the objectives for each of the
current five asset classes:
Asset class Four-Year Objective
Canadian Equities S&P/TSX Composite Total Return Index
plus 1.5%
U.S. Equities S&P 500 Total Return Index plus 1.5%
(Canadian $)
International Equities MSCI EAFE Total Return Index plus 1.5%
(Canadian $)
Fixed Income Scotia Capital Universe Bond Index plus 0.5%
Money Market Scotia Capital 91-Day Treasury Bill Index
plus 0.3%
The following specifies the asset allocation ranges and actual
allocation as of December 31, 2010 and 2009:
Actual
CRIP Range 2010 2009
Canadian Equities 25%–50% 35.3% 38.0%
U.S. Equities 0%–19% 4.9% 21.8%
International Equities 0%–19% 8.9% 7.9%
Fixed Income 30%–70% 50.3% 31.6%
Money Market 0%–10% 0.6% 0.7%
The investment goal is to achieve the composite return calculated
based on the above benchmark allocation plus 1% over successive
four-year periods. An additional objective is to provide a real rate of
return of 3.0% when compared with the Canadian Consumer Price
Index, also over successive four-year periods.
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