Equifax 2015 Annual Report Download - page 74

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Gross realized and unrealized gains and losses, purchases and sales for Level 3 postretirement assets were not material
for the twelve months ended December 31, 2015.
USRIP, or the Plan, Investment and Asset Allocation Strategies. The primary goal of the asset allocation strategy
of the Plan is to produce a total investment return which will satisfy future annual cash benefit payments to participants and
minimize future contributions from the Company. Additionally, this strategy will diversify the plan assets to minimize
nonsystemic risk and provide reasonable assurance that no single security or class of security will have a disproportionate
impact on the Plan. Investment managers are required to abide by the provisions of ERISA. Standards of performance for each
manager include an expected return versus an assigned benchmark, a measure of volatility, and a time period of evaluation.
The asset allocation strategy is determined by our external advisor forecasting investment returns by asset class and
providing allocation guidelines to maximize returns while minimizing the volatility and correlation of those returns. Investment
recommendations are made by our external advisor, working in conjunction with our in-house Investment Committee. The
asset allocation and ranges are approved by in-house investment fiduciaries and Plan Administrators, who are Named
Fiduciaries under ERISA.
The Plan, in an effort to meet asset allocation objectives, utilizes a variety of asset classes which has historically
produced returns which are relatively uncorrelated to those of the S&P 500 in most environments. Asset classes included in this
category of alternative assets include hedge funds, private equity (including secondary private equity) and real assets (real
estate, funds of hard asset securities and private equity funds focused on real assets). The primary benefits of using these types
of asset classes are: (1) their non-correlated returns reduce the overall volatility of the Plan’s portfolio of assets, and (2) their
ability to produce superior risk-adjusted returns. Additionally, the Plan allows certain of their managers, subject to specific risk
constraints, to utilize derivative instruments, in order to enhance asset return, reduce volatility or both. Derivatives are
primarily employed by the Plans in their fixed income portfolios and in the hedge fund-of-funds area. Derivatives can be used
for hedging purposes to reduce risk.
No shares of Equifax common stock were directly owned by the Plan at December 31, 2015 or at December 31,
2014. 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, 2015 and 2014:
Range Actual
USRIP 2015 2014 2015 2014
Large-Cap Equity 10%-40% 10%-35% 25.9%22.4%
Small- and Mid-Cap Equity 0%-15% 0%-15% 6.1%5.6%
International Equity 10%-30% 10%-30% 12.0%13.1%
Private Equity 2%-10% 2%-10% 8.8%6.9%
Hedge Funds 0%-10% 110%-30% 11.4%13.5%
Real Assets 2%-10% 2%-10% 3.7%7.1%
Fixed Income 20%-55% 15%-40% 29.7%29.9%
Cash 0%-15% 0%-15% 2.4%1.5%
1 Not all of the requested hedge fund redemptions were yet received as of December 31, 2015.
CRIP Investment and Asset Allocation Strategies. The primary goal of the asset allocation strategy of the Plan is
to produce a total investment return which will satisfy future annual cash benefit payments to participants and minimize future
contributions from the Company. Additionally, this strategy will diversify the plan assets to minimize nonsystemic risk and
provide reasonable assurance that no single security or class of security will have a disproportionate impact on the Plan. Due to
the high funded status of the Plan, the Investment Committee of the CRIP has adopted a conservative asset allocation of 50/50
in equities and fixed income. The Investment 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.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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