The objective of an occupational DB pension scheme is simple pay members their
|
|
- Denis Webb
- 6 years ago
- Views:
Transcription
1 October For professional investors only. Please read the important disclosure at the end of this article. spotlight Supporting the liability-hedging and return-seeking demands of a modern LDI strategy Julian Lyne Global head of distribution A firm foundation: absolute-return funds in an LDI strategy The objective of an occupational DB pension scheme is simple pay members their benefits in full and on time. The reality of achieving this premise, however, can be more complex. There are two moving parts within a pension scheme that determine the ease with which benefits can be paid: first, assets that is the amount the pension scheme has available to pay pensioners, and, second, liabilities the amount the scheme owes. Any deficit between those assets and liabilities can only be closed by additional cash contributions and/or investment returns. Changes in regulation, volatile market conditions and increasing life expectancy have caused the gap between assets and liabilities to grow (see exhibit 1 below). Consequently, more schemes are turning to investment strategies that better match the movement in their assets to the movement in their liabilities. Liability-driven investment (LDI) is one such approach. EXHIBIT 1: HISTORICAL AGGREGATE BALANCE (ASSETS LESS SECTION 179 LIABILITIES) AND FUNDING RATIO OF SCHEMES IN THE PENSION PROTECTION FUND UNIVERSE (billions) Aggregate balance (LHS) Funding ratio (RHS) A scheme s section 179 liabilities represent, broadly speaking, the premium that would have to be paid to an insurance company to take on the payment of Pension Protection Fund levels of compensation. Source: Pension Protection Fund 7800 Index, 30 June Data represents estimated aggregate assets and liabilities of the 5,945 UK pension schemes in the PPF 7800 Index % 1
2 LDI strategies create two pools: liability-hedging The first is a liability-hedging pool which focuses on investing in assets that move in the same way as factors that cause liabilities to grow. These factors include falling interest rates, rising inflation, and increasing longevity. Investing in assets that match movements in liabilities is known as liability hedging and typically uses physical bonds and derivatives in order to add leverage to the physical bonds held. Swaps and gilt repurchase agreements are also becoming common instruments for pension scheme trustees. A swap is simply an agreement between two parties to exchange a series of cash flows. For example, a pension fund may pay an investment bank a floating rate of interest, and receive an agreed fixed rate of interest in return. This is similar to a fixed-rate mortgage arrangement which many home owners now choose. return-seeking The second LDI pool is a return-seeking pool, which seeks to find additional return to fill any funding gaps and make it easier to pay benefits. It may include growth assets such as equities. EXHIBIT 2: SWAPS IN ACTION Inflation = expectations Fixed (at expected inflation) Inflation higher than expectations Fixed (at expected inflation) Inflation lower than expectations Fixed (at expected inflation) Pension fund Counter party Pension fund Counter Pension party fund Counter party Floating (actual inflation) Floating (actual inflation) Floating (actual inflation) No net impact on either party For illustrative purposes only. Pension fund gains on swap will have grown Pension fund makes loss on swap will have fallen What is involved in LDI? The starting point with LDI is to understand a scheme s liabilities and how these are likely to grow in the future. Prevailing running yields on risk-free gilts (plus some margin) or AA-rated corporate bonds are often used to determine the EXHIBIT 3: HEDGING CONCEPTS Source: Mercer. For illustrative purposes only. 0% hedged Yields fall 100% hedged Yields fall present value of those future (benefit) liabilities. The lower the yield on bonds, the lower the expected investment return over the period and thus the higher the present value of the liabilities today. It makes sense, therefore, to choose fixed-income assets for a liability-hedging portfolio since they respond to changes in interest rates in the same way as liabilities (see exhibit 3). However, the maturity of fixed-income assets is often too short to provide the long-term hedge needed by most pension funds. Secondly, most bonds (index-linked issues being the exception) fail to provide risk protection against rising inflation. Finally, investing in traditional bonds locks investors capital in and prevents them from seeking additional return elsewhere. Including swaps in an LDI strategy helps to mitigate some of the limitations of bonds by providing better duration matches and, through leverage, freeing up assets to be better employed in seeking return. As LDI has evolved, the approach to both return-seeking and liability-hedging assets has changed, with many schemes now adopting an LDI approach. 2
3 LDI in action When pension funds enter into a swap arrangement as part of a liability-hedging strategy in LDI, both parties need to provide collateral to secure the deal. In the past, schemes have relied on cash or gilts since these are low risk and liquid. Should the worst happen and the cash reserves not be sufficient to meet collateral agreements, schemes may be forced to sell assets, which can be costly and damaging. In seeking to support an LDI programme and potential cash calls, investing in liquid, return-seeking, and (relatively) low-risk assets alongside cash and gilts can help to mitigate against the dangers of forced selling at inopportune moments. Multi-asset absolute-return funds, unconstrained by traditional benchmarks, can offer a route to stable returns, with the additional benefit of capital preservation Schemes can put a liquidity ladder in place which has cash and gilts on the lowest rungs and gradually adds higher-return options above those. This approach may be particularly useful following the prolonged period of quantitative easing which has sent gilt yields to their lowest levels on record and meant government bonds can arguably be said no longer to enjoy their risk-free status. Those assets might include currency forwards, equity futures, or absolute return funds which invest in a range of fixed-income assets. LDI evolution has not been limited to the liability-hedging pool; the return-seeking side of the approach has also undergone important development. Diversification has become increasingly important in return-seeking strategies both to limit volatility and to allocate tactically to the best market opportunities. Multi-asset absolute-return funds, unconstrained by traditional benchmarks, can offer a route to stable returns, with the additional benefit of seeking to preserve capital. The focus for LDI strategies today, across both their pools (liability-hedging and return-seeking), is the right mix of global diversification, freedom from benchmark constraints and the ability to protect capital against volatility and downside loss. EXHIBIT 4: LDI SUMS For illustrative purposes only. + x% = Liability-hedging pool Swaps (interest rate, x etc.) Options Futures Fixed-income instruments Currency hedges Commodities Fixed-income absolute return strategies + Return-seeking pool Equities Renewables Infrastructure Corporate debt Convertibles Multi-asset absolute return strategies The right ingredients Fixed income is at the heart of the liability-hedging pool in LDI strategies. With bond yields at historic lows, the asset class faces a challenging future, but where a manager is free to invest based on their conviction and knowledge of the markets, opportunities can still be found. An unconstrained manager investing across a range of fixed income assets can use their knowledge, experience and skill to invest in regions, sectors and economies that present the greatest chance of meeting their investment objectives. By employing a dynamic approach, the manager can react to market conditions, as well as divergences between regions, currencies and economic policies, and change course to try to deliver the best outcome. At the same time, by taking risk-offsetting positions and investing in stabilising assets, an investment manager can seek to preserve capital and protect a portfolio from downside loss. Having an absolute-return (e.g. Libor + ) aim for these approaches is also consistent with the wider LDI objective. Using this globally diversified, absolutereturn approach can be beneficial on the return-seeking side. By targeting a higher return and including assets outside fixed income, absolute-return multi-asset funds can provide the necessary return-seeking element needed in an LDI strategy. An absolute-return multi-asset fund invests in a range of assets from traditional bonds, equities, cash and property, to more alternative classes such as renewable energy and infrastructure. These funds also include stabilising assets such as index-linked bonds, commodities, and risk-offsetting currency and equity hedges. 3
4 Where Newton fits in clients LDI approaches At Newton we have two tried and tested strategies that support both the liability-hedging and return-seeking demands of a modern LDI strategy. We have a number of clients using these as part of an LDI mandate. Strategy 1 Newton Global Dynamic Bond strategy Invests in a globally diversified range of fixed-income assets. The strategy is dynamically managed, and bond investments and currency positions are driven by our interpretation of market opportunities and risks. An unconstrained approach gives us the freedom to move dynamically between different regions, asset classes and currencies to try to weather market turbulence while continuing to deliver returns. The focus is in on simple, liquid fixed-income assets which are divided into a returnseeking core and a stabilising outer layer, both of which are dynamically managed. The Global Dynamic Bond strategy aims to deliver 2% a year above one-month LIBOR before fees over rolling five-year periods, and also aims to achieve a positive return on a rolling three-year basis. 1 The Newton Global Dynamic Bond Fund has achieved an annualised gross return of +7.0% since inception in An unconstrained approach gives us the freedom to move dynamically between different regions, asset classes and currencies EXHIBIT 5: A FUND WE BELIEVE IS FIT FOR ALL CONDITIONS: NEWTON GLOBAL DYNAMIC BOND FUND Low return world, too much leverage Credit crunch Quantitative easing Eurozone crisis Mario saves the day Taper Tantrum Commodity deflation Commodity deflation fallout Price (index) Source: Bloomberg, Newton (May 2006 to June 2016) For illustrative purposes only. Performance shown is for the Newton Global Dynamic Bond Fund, in GBP, net of fees since its inception 28 April The strategy aims to deliver a minimum return of cash (one-month GBP LIBOR) +2% per annum over 5 years before fees. In doing so, the strategy aims to achieve a positive return on a rolling 3-year basis. However, a positive return is not guaranteed and a capital loss may occur. 2 Source: Newton, 30 September 2016; inception was 1 May Past performance is not a guide to future performance. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested. Please see important information at the end of this document. 4
5 Strategy 2 Newton Real Return strategy This strategy, launched in 2004, seeks to deliver an absolute return (of one-month LIBOR +4% per annum over five-year periods and a positive return on a rolling three-year basis), while aiming to preserve capital. 3 It has the freedom to invest in multiple asset classes. Again, the emphasis is on simplicity and liquidity, with the team responsible for its management able to invest across multiple asset classes based on their best ideas. The Real Return strategy invests in traditional asset classes comprising a core of return-seeking assets, which is supported by stabilising assets that aim to hedge risks and dampen volatility. Physical gold Gold equity Stabilising assets / hedging positions Cash / short-dated bonds Current returnseeking assets Corporate debt Currency hedge Active currency positions We choose assets based on our views about long-term trends across the investment landscape, and we adapt to changes in market conditions and economic policies. The strategy aims to keep volatility between that typically shown by bonds and equities. Equity market hedges Equity option strategies Equities Renewables Infrastructure Convertibles Government bond options Conventional government bonds The Newton Real Return Fund has achieved an annualised gross return of +8.8% since inception in 2004, and a gross positive return in every year over that period. 4 Floating rate notes Commodities Index-linked bonds EXHIBIT 6: NEWTON REAL RETURN FUND PERFORMANCE SINCE INCEPTION TO 30 JUNE Total return % Newton Real Return Fund LIBOR 1 Month +4% p.a. MSCI AC World NDR FTSE Govt. All-Stocks Relaunched to new mandate 1 April The Fund aims to deliver a minimum return of cash (1 month LIBOR) +4% p.a. over five years before fees. In doing so, the Fund aims to achieve a positive return on a rolling three year basis. However, a positive return is not guaranteed and a capital loss may occur. Source: Lipper, weekly data, total return, gross of management fees, gross income reinvested. Figures are based on sterling returns. 31 July Comparisons are made to demonstrate correlation only and are for illustrative purposes only. Performance calculated as total return, income reinvested, gross of charges in sterling. 3 The strategy aims to deliver a minimum return of cash (one-month GBP LIBOR) +4% per annum over 5 years before fees. In doing so, the strategy aims to achieve a positive return on a rolling 3-year basis. However, a positive return is not guaranteed and a capital loss may occur. 4 Source: Newton, 30 September 2016; inception was 1 April Past performance is not a guide to future performance. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested. Please see important information at the end of this document. 5
6 At a glance Newton Global Dynamic Bond strategy Aim One-month sterling LIBOR +2% per annum over five years before fees, with a positive return on a rolling three-year basis.* Performance Annualised gross return of +7.0% since inception. Strategy size 2.0 billion (as at 30 Sep 2016) Key characteristics Unconstrained, dynamic and actively managed; uses a mixture of returnseeking and hedging techniques; global, thematic approach; focus on traditional fixed-income assets. *A positive return is not guaranteed and a capital loss may occur. Newton Real Return strategy Aim One-month sterling LIBOR +4% per annum over five-year periods, with a positive return on a rolling three-year basis.* Performance A gross positive return in every year since inception, and an annualised gross return of +8.8% since inception. Strategy size 10.0 billion (as at 30 Sep 2016) Key characteristics Emphasis on traditional asset classes; a return-seeking core with particular security characteristics; risk-offsetting positions aiming to dampen volatility and preserve capital; portfolio combines the characteristics of securities and asset classes. *A positive return is not guaranteed and a capital loss may occur. Julian Lyne Julian is responsible for all aspects of Newton s global distribution and marketing efforts. He joined Newton in 2014 to lead the global consultant relations and UK institutional business development team. Prior to joining Newton, Julian was Head of Institutional Business at F&C. Throughout his career he has held various roles covering client and consultant relations across both DC and DB arrangements. Further information Please contact our consultant relations and business development team: Telephone: newton_institutional@newton.co.uk Your capital may be at risk. The value of investments and the income from them can fall as well arise and investors may not get back the original amount invested. 6
7 Important information This is a financial promotion. This document is for professional investors only. Past performance is not a guide to future performance. Your capital may be at risk. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested. You should read the Prospectus and the Key Investor Information Document (KIID) for each fund in which you want to invest. The Prospectus and KIID can be found at Portfolio holdings are subject to change at any time without notice and should not be construed as investment recommendations. Compared to more established economies, the value of investments in emerging markets may be subject to greater volatility due to differences in generally accepted accounting principles or from economic, political instability or less developed market practices. The opinions expressed in this document are those of Newton and should not be construed as investment advice or any other advice and are subject to change. This document is for information purposes only. Any reference to a specific security, country or sector should not be construed as a recommendation to buy or sell investments in those countries or sectors. Please note that portfolio holdings and positioning are subject to change without notice. The value of overseas securities will be influenced by fluctuations in exchange rates. Where the portfolio is invested in sub-investment-grade bonds, which typically have a low credit rating and carry a high degree of default risk, please be aware that this may affect the capital value of your investment. In the UK, this document is issued by: Newton Investment Management Limited The Bank of New York Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA Tel: Registered in England No Registered office: As above. Newton Investment Management is authorised and regulated by the Financial Conduct Authority. BNY Mellon Asset Management is one of the world s leading asset management organisations, encompassing BNY Mellon s affiliated investment management firms and global distribution companies. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation. newton.co.uk 7
AN INTRODUCTION TO LIABILITY DRIVEN INVESTMENT AN INTRODUCTION TO LIABILITY DRIVEN INVESTMENT HELPING PENSION SCHEMES ACHIEVE THEIR ULTIMATE GOAL
FOR PROFESSIONAL CLIENTS ONLY. NOT TO BE REPRODUCED WITHOUT PRIOR WRITTEN APPROVAL. PLEASE REFER TO ALL RISK DISCLOSURES AT THE BACK OF THIS DOCUMENT. AN INTRODUCTION TO LIABILITY DRIVEN INVESTMENT HELPING
More informationNEWTON MULTI-ASSET INCOME FUND
March 2019 NEWTON MULTI-ASSET INCOME FUND This document is for professional investors only. Please read the important disclosure on the last page. Newton Multi-Asset Income Fund 1 Newton Multi-Asset Income
More informationSECURED FINANCE II FUND PROFILE
FOR PROFESSIONAL CLIENTS ONLY. NOT TO BE REPRODUCED WITHOUT PRIOR WRITTEN APPROVAL. PLEASE REFER TO ALL RISK DISCLOSURES AT THE BACK OF THIS DOCUMENT. SECURED FINANCE II FUND PROFILE OPPORTUNITY As banks
More informationUpdate on charity funds
Newton charity seminar 2016 Update on charity funds Jeremy Wells June 2016 For Professional and Retail Charity clients only Please read the important information at the back of this material The opinions
More informationNEWTON MULTI-ASSET INCOME FUND
NEWTON MULTI-ASSET INCOME FUND Jon Bell / Paul Flood January 2018 FOR PROFESSIONAL INVESTORS ONLY Please read the important information at the back of this material PRE00311 Investment process Newton Multi-Asset
More informationCORE CAPABILITIES LIABILITY DRIVEN INVESTMENT
FOR PROFESSIONAL CLIENTS ONLY. NOT TO BE REPRODUCED WITHOUT PRIOR WRITTEN APPROVAL. PLEASE REFER TO ALL RISK DISCLOSURES AT THE BACK OF THIS DOCUMENT. CORE CAPABILITIES LIABILITY DRIVEN INVESTMENT LIABILITY
More informationGOVERNMENT LIQUIDITY FUND SECURITY, LIQUIDITY, YIELD
FOR PROFESSIONAL CLIENTS ONLY. NOT TO BE REPRODUCED WITHOUT PRIOR WRITTEN APPROVAL. PLEASE REFER TO ALL RISK DISCLOSURES AT THE BACK OF THIS DOCUMENT. GOVERNMENT LIQUIDITY FUND SECURITY, LIQUIDITY, YIELD
More informationConnections matter. Jonathan Smith & Simon Bentley. Designing your end game. For professional investors only CM17913 UK
CM17913 UK Connections matter For professional investors only Jonathan Smith & Simon Bentley Designing your end game Investment risks The value of investments and any income derived from them can go down
More informationFUND PROFILE SECURED FINANCE
FOR PROFESSIONAL CLIENTS ONLY. NOT TO BE REPRODUCED WITHOUT PRIOR WRITTEN APPROVAL. PLEASE REFER TO ALL RISK DISCLOSURES AT THE BACK OF THIS DOCUMENT. FUND PROFILE SECURED FINANCE OPPORTUNITY Long-term
More informationINSIGHT ON MULTI-ASSET
FOR WHOLESALE CLIENTS ONLY. NOT TO BE DISTRIBUTED TO RETAIL CLIENTS. NOT TO BE REPRODUCED WITHOUT PRIOR WRITTEN APPROVAL. PLEASE REFER TO ALL RISK DISCLOSURES AT THE BACK OF THIS DOCUMENT. INSIGHT ON MULTI-ASSET
More informationLiability Aware Investing
For Investment Professionals Liability Aware Investing Objective-driven investing: evolving the DB mindset Anna Troup is Head of UK Bespoke Solutions at LGIM where she is responsible for finding ways of
More informationSHORT DURATION BONDS
SHORT DURATION BONDS RL Duration Hedged Credit Fund RL Investment Grade Short Dated Credit Fund RL Short Duration Credit Fund RL Short Duration Gilt Fund RL Short Duration Global High Yield Bond Fund RL
More informationCashflow Driven Investing for defined benefit pension schemes. Secure income investing in a low-yield environment
Cashflow Driven Investing for defined benefit pension schemes Secure income investing in a low-yield environment Alpha Real Capital 2 Cashflow Driven Investing overview The path to self-suffi ciency for
More informationLiability aware investing
August 2017 Liability aware investing The benefits of integrating your liability hedging and growth portfolios This document is for investment professionals only and should not be distributed to or relied
More informationSurvival of the Fittest
Survival of the Fittest The Evolution of Investment Strategies Chris Wood Pensions Investment Manager Michelin Tyre plc 17 May 2011 Evolution of Investment Strategies What has changed since 1990? Where
More informationNEWTON SUSTAINABLE INVESTMENT STRATEGIES
January 2019 NEWTON SUSTAINABLE INVESTMENT STRATEGIES Please read the important disclosure on the last page. Newton sustainable investment strategies Responsible investing is something we have been doing
More informationPerformance Report - Quarterly Update 31 December 2012 London Borough of Barnet Superannuation Fund JLT INVESTMENT CONSULTING
Performance Report - Quarterly Update 31 December 2012 London Borough of Barnet Superannuation Fund JLT INVESTMENT CONSULTING Contents Contents... 2 Section One Market Update... 3 Section Two Total Scheme
More informationINSIGHT LIQUIDITY SOLUTIONS
FOR PROFESSIONAL CLIENTS ONLY. NOT TO BE REPRODUCED WITHOUT PRIOR WRITTEN APPROVAL. PLEASE REFER TO ALL RISK DISCLOSURES AT THE BACK OF THIS DOCUMENT. INSIGHT LIQUIDITY SOLUTIONS OPPORTUNITY Security Money
More informationVodafone UK Defined Contribution Pension Plan
1. Introduction Vodafone UK Defined Contribution Pension Plan Statement of Investment Principles This Investment Statement sets out the principles governing decisions about investments for the Vodafone
More informationBNY MELLON LONG-TERM GLOBAL EQUITY FUND
Key Investor Information This document provides you with key investor information about this Fund. It is not marketing material. The information is required by law to help you understand the nature and
More informationSCOTTISH WIDOWS PREMIER PENSION PORTFOLIO FUNDS
SCOTTISH WIDOWS PREMIER PENSION PORTFOLIO FUNDS SCOTTISH WIDOWS PREMIER PENSION PORTFOLIO FUNDS BUILD ON OUR WELL-ESTABLISHED PENSION PORTFOLIO FUNDS. THEY AIM FOR BETTER POTENTIAL RETURNS FOR BROADLY
More informationGSK Pension Fund ( the Fund ) Statement of Investment Principles
GSK Pension ( the ) Statement of Principles This Statement of Principles (SIP) covers the defined benefit and the defined contribution sections of the. It is set out in four parts: 1) Governance arrangements
More informationMANAGING INTEREST RATE RISK WITH AN ABSOLUTE RETURN APPROACH
FOR WHOLESALE CLIENTS ONLY. NOT TO BE DISTRIBUTED TO RETAIL CLIENTS. NOT TO BE REPRODUCED WITHOUT PRIOR WRITTEN APPROVAL. PLEASE REFER TO ALL RISK DISCLOSURES AT THE BACK OF THIS DOCUMENT. September 2017
More informationThe dynamic nature of risk analysis: a multi asset perspective
The dynamic nature of risk analysis: This document is for Professional Clients in the UK only and is not for consumer use. Challenges for multi asset investing Multi asset portfolios with return and volatility
More informationBNY MELLON LONG-TERM GLOBAL EQUITY FUND
Key Investor Information This document provides you with key investor information about this Fund. It is not marketing material. The information is required by law to help you understand the natureandtherisksofinvestinginthisfund.youareadvisedtoreaditsoyoucan
More informationPerformance Report - Quarterly Update 30 September 2012 London Borough of Barnet Superannuation Fund
APPENDIX B Performance Report - Quarterly Update 30 September 2012 London Borough of Barnet Superannuation Fund JLT INVESTMENT CONSULTING Contents Contents...2 Section One Market Update...3 Section Two
More informationMerchant Navy Officers Pension Fund (MNOPF) Statement of Investment Principles
Merchant Navy Officers Pension Fund (MNOPF) Statement of Investment Principles Introduction The main purpose of the MNOPF is to provide pensions on retirement at normal pension age for Officers in the
More informationABSOLUTE INSIGHT CURRENCY FUND
FOR PROFESSIONAL CLIENTS ONLY. NOT TO BE REPRODUCED WITHOUT PRIOR WRITTEN APPROVAL. PLEASE REFER TO ALL RISK DISCLOSURES AT THE BACK OF THIS DOCUMENT. ABSOLUTE INSIGHT CURRENCY FUND BENEFITS Diversification:
More informationABSOLUTE INSIGHT EMERGING MARKET DEBT FUND
FOR PROFESSIONAL CLIENTS ONLY. NOT TO BE REPRODUCED WITHOUT PRIOR WRITTEN APPROVAL. PLEASE REFER TO ALL RISK DISCLOSURES AT THE BACK OF THIS DOCUMENT. ABSOLUTE INSIGHT EMERGING MARKET DEBT FUND OPPORTUNITY
More informationP a g e 1
P a g e 1 P a g e 2 P a g e 3 P a g e 4 P a g e 5 P a g e 6 P a g e 7 P a g e 8 P a g e 9 P a g e 1 P a g e 2 The Professional Footballers Pension Scheme Income Section Statement of Investment Principles
More informationThe dynamic nature of risk analysis: a multi asset perspective
The dynamic nature of risk analysis: a multi asset perspective Whitepaper Multi asset portfolios with return and volatility targets have a dual focus: return and risk. This means that there are two important
More informationMULTI ASSET CREDIT FOR PROFESSIONAL NOT SUITABLE FOR RETAIL INVESTORS.
FOR PROFESSIONAL CLIENTS ONLY, NOT SUITABLE FOR RETAIL INVESTORS. MULTI ASSET CREDIT MULTI ASSET CREDIT After 30 years of falling yields, investors are increasingly looking beyond traditional focus areas
More informationYour AVC Plan, Your Choice Investment Choice Guide for Public Sector Employees
Your AVC Plan, Your Choice Investment Choice Guide for Public Sector Employees taking care of you... 2 Contents Investing Your Additional Voluntary Contributions 4 Why Investment Choice Is Important 6
More informationThe Merrion Multi-Asset Fund Range. Retirement Investments Insurance
The Merrion Multi-Asset Fund Range Retirement Investments Insurance The Merrion Multi-Asset Fund Range 1 Ready-made portfolio funds for the cautious, balanced and adventurous investor. There are three
More informationINVESTOR PORTFOLIO SERVICE (IPS) IMPORTANT FUND INFORMATION.
INVESTOR PORTFOLIO SERVICE (IPS) IMPORTANT FUND INFORMATION. This guide gives you further information about each fund available from IPS and supports the Key Investor Information Document. 2 IMPORTANT
More informationDescription of the Fund TMLS Multi-Asset 70 Fund (the Fund ) is an investment-linked policy sub-fund offered by Tokio
TMLS MULTI-ASSET 70 FUND SUMMARY (SUPPLEMENT TO PRODUCT SUMMARY) This supplement forms part of the product summary. You should read this together with the relevant Product Summary. Description of the Fund
More informationM&G Corporate Bond Fund
M&G Corporate Bond Fund a sub-fund of M&G Investment Funds (3) Annual Short Report June 2017 For the year ended 30 June 2017 Fund information The Authorised Corporate Director (ACD) of M&G Investment Funds
More informationSCOTTISH WIDOWS PREMIER PENSION INVESTMENT APPROACHES CONCEPT AND DESIGN
SCOTTISH WIDOWS PREMIER PENSION INVESTMENT APPROACHES CONCEPT AND DESIGN INTRODUCTION BUILDING ON THE SCOTTISH WIDOWS PENSION INVESTMENT APPROACHES, THE PREMIER PENSION INVESTMENT APPROACHES AIM TO OFFER
More informationEaton Vance Management Two International Place Boston, MA 02110
Eaton Vance Management Two International Place Boston, MA 02110 www.eatonvance.com Form ADV Part 2A January 31, 2018 This brochure provides information about the qualifications and business practices of
More informationRLAM GUIDE TO FIXED INCOME INVESTING. For professional investors only, not suitable for retail investors
RLAM GUIDE TO FIXED INCOME INVESTING For professional investors only, not suitable for retail investors THE ROLE OF BONDS The bond market provides governments and enterprises with a means of raising capital
More informationCashflow Management Strategy
Aon Hewitt Retirement and Investment Aon Investment Research and Insights Cashflow Management Strategy Cashflow Driven Investment Series November 2017 Table of contents Executive summary....3 Introduction...4
More informationIMPORTANT FUND INFORMATION.
INVESTOR PORTFOLIO SERVICE (IPS) IMPORTANT FUND INFORMATION. NATIONWIDE This guide gives you further information about each fund available from IPS and supports the Key Investor Information Document. 2
More informationInvestment Insights LDI PLUS
RISK PENSIONS INVESTMENT INSURANCE Newsletter Investment Insights LDI PLUS The use of liability driven investments (LDI), by which we mean the practice of using leverage to try to reduce the exposure of
More informationNEWTON GLOBAL EMERGING MARKETS STRATEGY
July 2018 NEWTON GLOBAL EMERGING MARKETS STRATEGY For institutional investors only. Not for distribution outside the U.S. or to individual investors. Compared to more established economies, the value of
More informationHSBC Global Strategy Portfolios
s A world of opportunities made affordable * MILE TM RECOMMENDED For Professional Clients only *The Balanced - Retail X Acc and Dynamic - Retail X Acc are both rated 5 Stars as at 30 September 2017 A balancing
More informationStatement of Investment Principles
Statement of Investment Principles This is the Statement of Investment Principles (the Statement ) made by Hermes Pension Trustees Limited, as Trustee (the Trustee ) of the Hermes Group Pension Scheme
More informationUNCOVERING INVESTMENT OPPORTUNITIES IN A WORLD OF DISRUPTION
Wifi: Heads Together PW: Newton2016 #Newton2016 UNCOVERING INVESTMENT OPPORTUNITIES IN A WORLD OF DISRUPTION Rob Stewart Portfolio manager, Multi-asset Fati Naraghi Global analyst, Technology Tim Lucas
More informationThe SunGard Retirement Benefits Scheme Quarterly Investment Monitoring Report to 31 March 2012
Quarterly Investment Monitoring Report to 31 March 2012 Executive Summary Scheme Asset Valuation The SunGard Section's assets increased in value over the quarter to 75,233,620. This is an increase of 5,188,852
More informationCIS Corporate Bond Income Trust
CIS Corporate Bond Income Trust A high quality bond portfolio generating a regular and stable income. Product profile as at 31/03/2013 This document is intended for investment professionals and professional
More informationStatement of Investment Principles University of Oxford Staff Pension Scheme (Defined Benefit)
Statement of Investment Principles University of Oxford Staff Pension Scheme (Defined Benefit) Introduction This Statement of Investment Principles (SIP) has been prepared by the Trustee of the University
More informationBNY Mellon Global Real Return Fund
INVESTMENTS BNY Mellon Global Real Return Fund Introduction The main objective of investing is to increase wealth... Traditional investing is based on the assumption that your focus is on long-term return.
More informationINSIGHT S POOLED LDI PLATFORM LDI SOLUTIONS PLUS
FOR PROFESSIONAL CLIENTS ONLY. NOT TO BE REPRODUCED WITHOUT PRIOR WRITTEN APPROVAL. PLEASE REFER TO ALL RISK DISCLOSURES AT THE BACK OF THIS DOCUMENT. INSIGHT S POOLED LDI PLATFORM LDI SOLUTIONS PLUS OPPORTUNITY
More informationDB Dynamics. Setting the liability hedge level. For investment professionals only. Not for distribution to individual investors.
DB Dynamics Setting the liability hedge level For investment professionals only. Not for distribution to individual investors. In this edition of DB Dynamics we present our hedging philosophy, explaining
More informationHSBC Global Strategy Portfolios
HSBC Global Strategy s A world of opportunities made affordable ** The HSBC Global Strategy Balanced - Retail X Acc and HSBC Global Strategy* Dynamic - Retail X Acc are both rated 5 Stars as at 30 June
More informationThe case for income. This document is for Professional Clients only and is not for consumer use. Figure 1 10-year equity market returns
The case for income This document is for Professional Clients only and is not for consumer use. Income-seeking investors have faced headwinds in the aftermath of the global financial crisis. Interest rates
More informationINTRODUCING INSIGHT INVESTMENT
FOR WHOLESALE CLIENTS ONLY. NOT TO BE DISTRIBUTED TO RETAIL CLIENTS. NOT TO BE REPRODUCED WITHOUT PRIOR WRITTEN APPROVAL. PLEASE REFER TO ALL RISK DISCLOSURES AT THE BACK OF THIS DOCUMENT. INTRODUCING
More informationInvestor s Guide Clerical Medical Pension Funds
Investor s Guide Clerical Medical Pension Funds Contents Introduction 1 Clerical Medical funds managed by Aberdeen Standard Investments 2 Clerical Medical funds managed by other fund managers 3 Pension
More informationFor professional investors or advisers only. Schroders. Defined Contribution Services. Advanced. pension products
For professional investors or advisers only Schroders Defined Contribution Services Advanced pension products Experience and advanced thinking Schroders has significant experience of managing DC assets
More informationStatement of Investment Principles
Statement of Investment Principles Statement of Investment Principles Staffordshire Pension Fund 1.0 Introduction 1.1 This is the Statement of Investment Principles produced by Staffordshire County Council
More informationThe Benefits of Recent Changes to Trustees Investment Powers. June 2006
The Benefits of Recent Changes to Trustees Investment Powers June 2006 Financial Markets and Rollercoasters Spot the Difference? Performance from 1 Jan 1998 to 31 Mar 2006 80 % 60 % 40 % 20 % 0 % -20 %
More informationPresentation The role of fixed income today. Quentin Fitzsimmons. Senior Portfolio Manager, Fixed Income T. Rowe Price
Presentation The role of fixed income today Quentin Fitzsimmons Senior Portfolio Manager, Fixed Income T. Rowe Price THE ROLE OF FIXED INCOME TODAY Quentin Fitzsimmons Global Fixed Income Portfolio Manager
More informationPersonal Strategy Income Fund
SUMMARY PROSPECTUS PRSIX PPIPX Investor Class I Class October 1, 2017 T. Rowe Price Personal Strategy Income Fund A fund seeking primarily income through a diversified portfolio of stocks, bonds, and other
More informationCash Equitisation. August Introduction
Cash Equitisation Carolyn Baird, Director, UK Institutional - Sales Yacine Zerizef, Senior Portfolio Manager, UK Overlay Services Klaus Paesler, Head of Currency and Overlay Strategy, UK Overlay Services
More informationReasons why: European high yield
For professional investors and financial advisers only not for use by retail investors Reasons why: European high yield Aberdeen European High Yield Bond Fund February 7 Steven Growth European high yield
More informationABSOLUTE RETURN GOVERNMENT BOND FUND
ABSOLUTE RETURN GOVERNMENT BOND FUND For professional investors only, not suitable for retail investors A NEW OPPORTUNITY Absolute return funds offer an attractive, alternative source of alpha outright
More informationIMPORTANT FUND INFORMATION.
INVESTOR PORTFOLIO SERVICE (IPS) IMPORTANT FUND INFORMATION. PANEL B This guide gives you further information about funds that were previously available and supports the Key Investor Information Document.
More informationABACUS DFM MODEL PORTFOLIOS
ABACUS DFM MODEL PORTFOLIOS Q4 2018 ABACUS DFM MODEL PORTFOLIOS QUARTERLY PERFORMANCE CONTENTS MODEL PORTFOLIOS 1 THE INVESTMENT MANAGEMENT REVOLUTION 2 SIGNIFICANCE OF CURRENCY HEDGING 4 INVESTING IN
More informationCashflow Driven Investment Assets
Aon Hewitt Retirement and Investment Aon Investment Research and Insights Cashflow Driven Investment Assets Cashflow Driven Investment Series November 2017 Table of contents Executive summary....3 Introduction...4
More informationNEWTON GLOBAL EQUITY INCOME STRATEGY. February 2019
February 2019 NEWTON GLOBAL EQUITY INCOME STRATEGY This document is for professional investors only. Newton claims compliance with the Global Investment Performance Standards (GIPS ). Please read the important
More informationIntroducing the. M&G Absolute Return
Introducing the M&G Absolute Return Bond Fund 2 M&G Absolute Return Bond Fund Introducing the M&G Absolute Return Bond Fund M&G has launched a new fund designed to chart a steady, positive course for its
More informationHarbour Investment Funds Statement of Investment Policy & Objectives (SIPO)
Harbour Investment Funds Statement of Investment Policy & Objectives (SIPO) Issued by Harbour Asset Management Limited 19 June 2017 This document replaces the SIPO dated 21 st September 2016 1 HARBOUR
More informationRethink your income strategy
Rethink your income strategy BlackRock Multi-Asset Income Fund (BIICX) 1 THE CHALLENGE Yields remain low Yields are low across the income landscape, with less than 25% of fixed income assets yielding over
More informationCURRENCY MANAGEMENT SOLUTIONS
FOR PROFESSIONAL CLIENTS ONLY. NOT TO BE REPRODUCED WITHOUT PRIOR WRITTEN APPROVAL. PLEASE REFER TO ALL RISK DISCLOSURES AT THE BACK OF THIS DOCUMENT. CURRENCY MANAGEMENT SOLUTIONS AUGUST 2017 > Currency
More informationM&G Absolute Return Bond Fund
M&G Absolute Return Bond Fund a sub-fund of M&G Investment Funds (10) Interim Short Report September 2017 For the six months ended 30 September 2017 Fund information The Authorised Corporate Director (ACD)
More informationInvestment Strategy Statement: September 2018
Investment Strategy Statement: September 2018 Introduction and background This is the Investment Strategy Statement ( ISS ) of the London Borough of Lewisham Pension Fund ( the Fund ), which is administered
More informationFor professional investors and advisers only. Schroders. Liquid Alternatives
For professional investors and advisers only Schroders Liquid Alternatives Introduction What are liquid alternatives? 4 How do they work? 5 Performance characteristics 6 How to apply liquid alternatives
More informationA Flight Path to Self Sufficiency
A Flight Path to Self Sufficiency Longer term planning for pension schemes Mark Humphreys and Jonathan Smith, Head of UK Strategic Solutions & Strategic Solutions Analyst Introduction In this paper we
More informationYour Investment Options
Your Investment Options Hewlett-Packard Buy Out Plan A choice of funds to help you meet your retirement goals This guide shows you the range of investment options available through the Hewlett-Packard
More informationThe increasing importance of multi asset solutions genuine diversification to reduce total risk
The increasing importance of multi asset solutions genuine diversification to reduce total risk Ariconsult Vermögensverwaltungs-Symposium 17 September 2014 Richard Batty Fund Manager, Multi Asset This
More informationCIS Sustainable Diversified Trust
CIS Sustainable Diversified Trust To provide capital growth from a diverse range of asset classes including equities, fixed income, property-related investments and cash, mainly in the UK. Product profile
More informationMULTI ASSET CREDIT. For professional investors only, not suitable for retail investors
MULTI ASSET CREDIT For professional investors only, not suitable for retail investors After 30 years of falling yields, investors are increasingly looking beyond the traditional focus on investment grade
More informationFund Fact Sheet. for members of the Hewlett-Packard Limited Pension Scheme
Fund Fact Sheet for members of the Hewlett-Packard Limited Pension Scheme 3 June 21 Introduction This fact sheet gives you details of the investment funds available to you as a member of the Hewlett-Packard
More informationPooled liability driven investment solutions.
LGIM OUR RANGE OF POOLED DE-RISKING SOLUTIONS Pooled liability driven investment solutions. For defined benefit schemes and their advisors With unrivalled scale and experience in the UK pension market,
More informationActive Management IN AN UNCERTAIN FINANCIAL ENVIRONMENT, ADDING VALUE VIA ACTIVE BOND MANAGEMENT
PRICE PERSPECTIVE September 2016 In-depth analysis and insights to inform your decision-making. Active Management IN AN UNCERTAIN FINANCIAL ENVIRONMENT, ADDING VALUE VIA ACTIVE BOND MANAGEMENT EXECUTIVE
More informationGW Contracted-out Money Purchase Scheme ( the Scheme ) Statement of Investment Principles
GW Contracted-out Money Purchase Scheme ( the Scheme ) Statement of Principles This Statement of Principles (SIP) covers the defined contribution section of the Scheme. It is set out in three parts: 1)
More informationGROWTH FIXED INCOME APRIL 2013
GROWTH FIXED INCOME APRIL 2013 BACKGROUND Most investors view fixed income investments as providing a liability-matching or defensive aspect to their total portfolio. The types of investments considered
More informationFund Fact Sheet. for members of the Hewlett-Packard Limited Pension Scheme
Fund Fact Sheet for members of the Hewlett-Packard Limited Pension Scheme 31 December 29 Introduction This fact sheet gives you details of the investment funds available to you as a member of the Hewlett-Packard
More informationDeeper Perspectives. CDI emerging as UK DB schemes turn increasingly cashflow negative
Number 51 A regular analysis of strategic issues in the global asset management business Deeper Perspectives CDI emerging as UK DB schemes turn increasingly cashflow negative Net contributions into the
More informationPERSPECTIVES. Multi-Asset Investing Diversify, Different. April 2015
PERSPECTIVES April 2015 Multi-Asset Investing Diversify, Different Matteo Germano Global Head of Multi Asset Investments In the aftermath of the financial crisis, largely expansive monetary policies and
More informationDISCRETIONARY PORTFOLIO MANAGEMENT SERVICE EXPLAINING YOUR PORTFOLIO. A description of how we construct and manage our clients investment portfolios
DISCRETIONARY PORTFOLIO MANAGEMENT SERVICE EXPLAINING YOUR PORTFOLIO A description of how we construct and manage our clients investment portfolios INNOVATION BUILT ON TRADITION CONTENTS Page 5. Explaining
More informationM&G Short Dated Corporate Bond Fund
M&G Short Dated Corporate Bond Fund a sub-fund of M&G Investment Funds (2) Annual Short Report May 2017 For the year ended 31 May 2017 Fund information The Authorised Corporate Director (ACD) of M&G Investment
More informationSmithKline Beecham Senior Executive Pension Plan ( the Plan ) Statement of Investment Principles
SmithKline Beecham Senior Executive Pension Plan ( the Plan ) Statement of Principles This Statement of Principles (SIP) is set out in three parts: 1) Governance arrangements 2) Objectives and implementation
More informationMULTI ASSET FROM COLUMBIA THREADNEEDLE INVESTMENTS
MULTI ASSET FROM COLUMBIA THREADNEEDLE INVESTMENTS COLUMBIATHREADNEEDLE.CO.UK COLUMBIATHREADNEEDLE.COM CONTENTS 01 What is a Multi Asset fund?... 2 02 Why Multi Asset?... 3 03 The Risks of Multi Asset
More informationRisk guide. For financial advisers / FINANCIAL ADVISERS
Risk guide For financial advisers / FINANCIAL ADVISERS Important information All of the solutions we offer involve some form of investment risk. Your clients should be aware that the value of investments
More informationM&G UK Inflation Linked Corporate Bond Fund
M&G UK Inflation Linked Corporate Bond Fund a sub-fund of M&G Investment Funds (10) Interim Short Report September 2017 For the six months ended 30 September 2017 Fund information The Authorised Corporate
More informationProgress Rail Services Group Personal Pension Plan. Choosing your own investment funds
Progress Rail Services Group Personal Pension Plan Choosing your own investment funds If you re considering making your own investment choice, there are some things you need to think about before you select
More informationTavistock Investments Plc Group INTEGRITY VIGILANCE
GLOBAL SERVICE Tavistock Investments Plc Group INTEGRITY VIGILANCE GLOBAL SERVICE CONTENTS: SAFE HANDS 1 TAVISTOCK WEALTH, REVOLUTIONARY THINKING & OUR VISION 2 GLOBAL SERVICE, GLOBAL PORTFOLIOS & LONG-TERM
More informationStatement of Investment Principles
Shropshire County Pension Fund Statement of Investment Principles 1. Introduction The purpose of the ( the Statement ) is to document the principles, policies and beliefs by which the Pensions Committee
More informationLONDON BOROUGH OF HARINGEY PENSION FUND INVESTMENT STRATEGY STATEMENT. 1. Introduction
LONDON BOROUGH OF HARINGEY PENSION FUND INVESTMENT STRATEGY STATEMENT 1. Introduction Haringey Council is the Administering Authority for the Local Government Pension Scheme in the London Borough of Haringey
More informationCall the new helpline if you have any pension queries on
Issue 15 September 2012 In this issue of InFocus the Trustee directors provide you with: A new member helpline number; A change of name for one of our AVC investment funds; An update on automatic enrolment;
More information