Investment governance

Real governance needs to be transparent so you can see what action we've taken and why. This should give you and your clients peace of mind that we're looking after their investments.

The Investment Advisory Committee (IAC) meet every quarter to review our Governed Range and funds. Highlights from the most recent meetings can be found below.

Details of previous IAC meetings can be found on the governance meeting updates archive.

1 December 2016 - Governance meeting update

Highlights:

  • There have been five tactical asset allocation changes since the last IAC meeting in August. No further strategic asset allocation changes have been recommended.
  • Within the Governed Portfolios, we have reduced the exposure to equities and corporate bonds and used the proceeds to increase exposure to government bonds and index-linked bonds. Within the GRIPs, we have reduced the exposure to equities and high yield bonds and increased exposure to corporate bonds and index-linked bonds.
  • The surprise US presidential election result is unlikely to derail the recent pick-up in global growth nor result in any significant tightening in monetary policy.  As a  result, we continue to prefer equities to bonds on relative valuation grounds and our expectation of positive global growth.
30 August 2016 - Governance meeting update

Highlights:

  • New strategic asset allocations introduced for the Governed Portfolios on 30 June 2016. There have been three tactical changes since the last meeting on 14 June 2016.
  • Within the Governed Portfolios, we have reduced the exposure to index linked bonds and government bonds and used the proceeds to increase exposure to equities and commodities. Within the GRIPs, we have reduced the exposure to index linked bonds and used the proceeds to top up the overweight position in equities.
  • We expect a modest upturn in global economic growth in 2016 and 2017 with limited impact from ‘Brexit’.  We expect the Federal Reserve to again raise rates again in late 2016 though rises should be very gradual.  
14 June 2016 - Governance meeting update

Highlights:

  • Three tactical asset allocation changes were made since the last meeting on 3 March 2016. Overweight positions were maintained in equities, high yield, gilts and absolute return strategies (including cash). We continue to adopt underweight positions in corporate bonds and index linked and remain neutral on property.
  • All nine Governed Portfolios continue to be within their projected target risk ranges. All five GRIPs are within their short term measures with four within the long term ranges.
  • Significant market volatility triggered by outcome of EU referendum post-meeting.
3 March 2016 - Governance meeting update

Highlights:

  • Three tactical asset allocation changes made during the period – Overweight in equity, absolute return strategies (including cash) and high yield bonds and underweight in corporate bonds and index-linked bonds. 
  • Work is ongoing to implement additional strategies within the portfolios.
  • Market volatility remained throughout remainder of 2015 and into early 2016. Economic data remains mixed causing unsettled investor sentiment.
Last updated: 15 Sep 2016

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