This asset class holds fixed income securities exclusively. Our largest holdings are in Canadian government bonds.

Our fixed income holdings totalled $55.8 billion at the end of 2011, or 48% of the pension fund, compared to $45.9 billion at the end of 2010.

These assets provide investment security and steady income, and more generally stabilize the pension fund’s investment returns.

We own a diversified portfolio of Government of Canada bonds, Ontario debentures, provincial bonds, real-return bonds and inflation-linked bonds. Real-return bonds provide returns that are indexed to inflation, as measured by the consumer price index, and include debt issued by the Canadian and U.S. governments and the manager of Highway 407 in Ontario.