A traditional approach that invests in equities, bonds, and cash

The decision to take a holding is based on a company’s ability to grow its earnings and cash flow over the long term, and how much of the potential future success is recognised by the market. Holdings in bonds and cash may rise or fall in order to add value and to offset the volatility of the equity exposure.

Typical Number of Holdings: Client specific
Maximum Stock Position: Benchmark +3% (excluding funds)
Benchmark: Client specific
Objective: To outperform peer group by 1-1.5% p.a. over rolling three-year periods

Reflecting evolving views on asset classes which aim to enhance long-term returns and manage volatility

This strategy aims to deliver an attractive level of return above cash, with lower volatility than equity markets. It invests in a range of traditional and alternative asset classes including equities, infrastructure, commodities and currencies. The strategy is hedged to sterling.

Benchmark: UK Base Rate
Objective: To outperform the UK Base Rate by at least 3.5% per annum (net of fees) over rolling five-year periods with an annualised volatility of less than 10%

Reflecting views on the return and risk characteristics of different asset classes

The objective of the strategy is to deliver an attractive level of return above cash, with lower volatility than equity markets. The portfolio reflects views on the long-term return and risk characteristics of different asset classes and incorporates an assessment of shorter-term prospects. Financial derivative instruments can be used to protect or enhance the returns. This strategy is available benchmarked against cash in £, €, US$ and Yen. 

US Dollar
Benchmark: Federal Funds Rate
Objective: To outperform the Federal Funds Rate by 3.5% per annum (net of fees) over rolling five-year periods with an annualised volatility of less than 10% over rolling five-year periods

Yen
Benchmark: Mutan Rate
Objective: To outperform the Mutan Rate by 3.5% per annum (net of fees) over rolling five-year periods with an annualised volatility of less than 10% over rolling five-year periods

Euro
Benchmark: ECB Deposit Facility Rate
Objective: To outperform the ECB Deposit Facility Rate by 3.5% per annum (net of fees) over rolling five-year periods with an annualised volatility of less than 10% over rolling five-year periods

Aiming for attractive long-term returns at lower risk than equity markets

This strategy invests in a range of traditional and alternative asset classes such as equities, bonds, property, infrastructure, commodities and currencies. The different asset classes are included in the portfolio to enhance returns or reduce volatility. There is no allocation benchmark but there are limits on exposure to individual asset classes.

Benchmark: UK Base Rate
Objective: To outperform the UK Base Rate by 3.5% per annum (net of fees) over rolling five-year periods with an annualised volatility of less than 10% over rolling five-year periods