FOR ADVISERS ONLY
Investment Governance Meeting Summary – 28 September 2021
For more in-depth material you can access the following information:
Strategic Asset Allocation
No SAA changes were recommended for the Governed Portfolios or GRIPs.
Tactical Asset Allocation
Last change made on 10 June 2021.
Global equities were volatile in May but posted positive returns. After weaker than expected US jobs data dampened tapering concerns, proving constructive for equities, stronger than expected US inflation data dented markets in the following week. However, the Federal Reserve reassured markets that inflation is transitory, encouraging equities back towards all-time highs. Given strong equity performance over the last three quarters, we tempered our equities overweight and increased our positive tilt to commodities, which benefit in a global recovery. We remained overweight in global high yield bonds, underweight gilts and corporate bonds, and extended our underweight in commercial property.
Fund Review
Governed Portfolios
| Number of Governed Portfolios outperforming benchmark | 1 year | 1/9 |
|---|---|---|
| 3 years | 9/9 | |
| Since launch | 9/9 | |
| Number of Governed Portfolios within target volatility ranges | 9/9 | |
-
All the Governed Portfolios were within their target volatility ranges.
Governed Retirement Income Portfolios
| Number of GRIPs outperforming benchmark | 1 year | 5/5 |
|---|---|---|
| 3 years | 5/5 | |
| Since launch | 5/5 | |
| Number of GRIPs within target range – Income Risk Metric | 5/5 | |
| Number of GRIPs within target range – Fund Risk Metric | 5/5 | |
All portfolios remain within their target ranges for the income risk metric, with GRIP 2 being amber as it nears it’s upper limit. Sustainability scores have decreased slightly from last quarter due to a fall in expectations of future returns for some assets.
The fund risk metrics for all GRIPs are within tolerance, with GRIP 2 flagging amber. This is similar to last quarter.
| Overweight | Neutral | Underweight | |
|---|---|---|---|
| Equities |  |
||
| Property | |
||
| Commodities |  |
||
| High Yield |  |
||
| Gilts | |
||
| Index Linked | |
||
| Corporate Bonds | |
||
| Absolute Return Strategies (including cash) | |
Global equities were volatile in May but posted positive returns. After weaker than expected US jobs data dampened tapering concerns, proving constructive for equities, stronger than expected US inflation data dented markets in the following week.
However, the Federal Reserve reassured markets that inflation is transitory, encouraging equities back towards all-time highs. Given strong equity performance over the last three quarters, we tempered our equities overweight and increased our positive tilt to commodities, which benefit in a global recovery. We remained overweight in global high yield bonds, underweight gilts and corporate bonds, and extended our underweight in commercial property.