FOR ADVISERS ONLY
Investment Governance Meeting Summary – 22 November 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 9 September 2021.
Global equities reached fresh highs in August despite some mixed global economic data, with short term inflation numbers being most challenging for markets. Bond markets, however, continued to believe that inflation was a transitory issue after reassurance from major central banks. Commodities and stocks remained strong in August as the global economic recovery continued. We maintained our overweight positions in both global high yield bonds and commodities, but marginally increased the modest positive tilt to equities. The portfolios moved marginally more underweight corporate bonds and increased the underweight in gilts given inflation uncertainty, and maintained the slight 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 |  |
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| Property |  |
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| Commodities | |
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| High Yield | |
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| Gilts |  |
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| Index Linked | |
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| Corporate Bonds | |
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| Absolute Return Strategies (including cash) | |
Global equities reached fresh highs in August despite some mixed global economic data, with short term inflation numbers being most challenging for markets. Bond markets, however, continued to believe that inflation was a transitory issue after reassurance from major central banks.
Commodities and stocks remained strong in August as the global economic recovery continued. We maintained our overweight positions in both global high yield bonds and commodities, but marginally increased the modest positive tilt to equities. The portfolios moved marginally more underweight corporate bonds and increased the underweight in gilts given inflation uncertainty, and maintained the slight underweight in commercial property.