THE CONTRIBUTORY PENSION PLAN FUND FOR EMPLOYEES OF TRANSIT WINDSOR

(Registration Number 353821)

Notes to Financial Statements (continued)
(in thousands of dollars unless otherwise stated)

Year ended December 31, 2019 

9. Financial instruments (continued): 

(a) Fair values (continued): 

Fair value measurements recognized in the statement of net assets are categorized using a fair value hierarchy that reflects the significance of inputs used in determining the fair values. 

• Level 1 - unadjusted quoted prices in active markets for identical assets or liabilities;
  
  
• Level 2 - inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and
• 
  Level 3 - inputs for assets and liabilities that are not based on observable market data. The following table illustrates the classification of the Plan's financial instruments using the fair value hierarchy as at December 31: 

	2019 LEVEL 2	2018 LEVEL 2
Sun Life Pooled Funds: Cash equivalents	$ 187	$ 197
Investments managed by OMERS	34,591	32,763
	$ 34,778	$ 32,960

(b) Associated risks: 

(i) Market price risk: 

Market price risk is the risk that the value of an instrument will fluctuate as a result of changes in market prices, whether those changes are caused by factors specific to an individual investment, its issuer or all factors affecting all instruments traded in the market. As all of the Plan's financial instruments are carried at fair value with fair value changes recognized in the statement of changes in net assets available for benefits, all changes in market conditions will directly result in an increase (decrease) in net assets. Market price risk is managed by the Plan through the construction of a diversified portfolio of instruments traded on various markets and across various industries.