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.

29 August 2017- Governance meeting update

Highlights:

  • There have been three tactical asset allocation changes since the last IAC meeting in June. The proposed GRIP strategic asset allocations are subject to approval within Royal London’s governance framework.
  • Within the Governed Portfolios, we have marginally increased the portfolios’ exposure to high yield bonds as a lower risk way of gaining corporate exposure with some income, as summer months tend to be more volatile.
  • Geopolitical risks, an unpredictable White House, Brexit negotiations, concerns regarding Chinese growth, could all result in a sell-off in risk assets. However, with global growth and the corporate earnings outlook positive, we would view market dips as likely buying opportunities.

 

13 June 2017 - Governance meeting update

Highlights:

  • There have been three tactical asset allocation changes since the last IAC meeting in February. The most recent change took place on 11 May 2017. New SAA positions for the GRIPs were recommended this quarter.
  • Over the quarter, within the Governed Portfolios, we maintained a small overweight in equities and commodities, added to positions in global high yield while slightly trimming the commodity exposure. Within the GRIPs, we reduced our overweight position in equities and increased exposure to global high yields and gilts.
  • European elections dominated over the last quarter. Politics could still affect markets but we expect a positive investment backdrop for risk assets to continue with global growth stable and interest rates remaining at historically low levels. An unpredictable White House, Brexit negotiations and concerns regarding Chinese growth could result in a sell-off in risk assets over the summer.
28 February 2017 - Governance meeting update

Highlights:

  • There has been one tactical asset allocation change since the last IAC meeting in December. No further strategic asset allocation changes have been recommended.
  • 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 bonds and increased exposure to equities.
  • The election of Donald Trump was the dominant event of the quarter, as hopes of reflationary policies and firmer economic and survey data, boosted growth and inflation-linked assets.
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.
Last updated: 04 Oct 2017

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The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London EC3V 0RL.