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We believe all investment options should be monitored on a regular basis and through strong governance we can help to ensure they deliver in line with their investment objectives.
That’s why all of our investment options have a formal review process, at no extra cost.
At the heart of this is our Investment Advisory Committee (IAC).
Find out more about our Governance Promise.
View a copy of the Investment Advisory Committee Terms of reference
The IAC is made up of five pension and investment experts, three from the Royal London Group and two independent experts. They're committed to providing an ongoing formal review process for our investment proposition helping you deliver an ongoing, compliant service and peace of mind to your clients.
Meetings are held on a regular, usually quarterly basis to review our Governed Range and funds. The review process focuses on taking a long-term view to ensure investment decisions are made in our investor’s best interests and cover the following types of questions:
We understand that real governance needs to be transparent so you can see what action we’ve taken and why.
To help the committee to make these decisions, they review reports and market commentary from –
To find out more about our members download The Investment Advisory Committee leaflet.
There have been three tactical changes in the last quarter:
There were three tactical changes in Q1;
During the quarter, we continued to take an active approach to tactical asset allocation with a view to generating returns irrespective of market direction. As the virus spread rapidly outside China, we took exposure down to a broadly neutral position to reflect a high level of uncertainty. We also increased our exposure to government bonds, while trimming global high yield exposure. We retain a position in short duration global high yield, a relatively defensive strategy. Lastly, we have minimal commodity exposure, having sold ahead of the crisis.
There have been two tactical changes since the last meeting:
We started the quarter overweight in equities, having taken advantage of seasonal weakness in the summer. While we tactically traded this allocation through the quarter to exploit valuation opportunities, stocks should continue to outperform bonds over the next year or two and we remain constructive on equities with an overweight allocation. While trade issues and geopolitical risk could cause short-term setbacks, we are primed to buy on any setback in global stock markets or on further evidence of economic recovery.
We started the quarter firmly overweight in equities, having bought during weakness last quarter and benefitted from the sharp recovery. We slightly increased this position over the period, taking advantage of seasonal weakness in August.
Monetary policy is currently easing in the US, the euro area, China and a wide range of other developed and emerging economies. We think this economic cycle has further to run and stocks should continue to outperform bonds over the next year or two.