Market Related Portfolio

Contributions for members who are under 55 years of age are automatically invested in the Fund’s Main Portfolio. When you are within five years of normal retirement you are given a choice about how you would like your Fund Credit to be invested.  There is a default lifestage model that applies if you do not make a choice. These portfolios are termed Market Related for the reason that the returns move directly in line with movements in the market indices.

1.   What is the Market Related Portfolio?

The Main Portfolio is currently invested in pooled portfolios with three asset managers with investment styles that complement one another, via the Investment Solutions platform. The managers are allowed to vary the proportions invested locally and offshore, and within asset classes (i.e. Shares, Bonds, Property, Cash etc.) subject to the limitations of Regulation 28 of the Pensions Fund Act, which governs the investments of all retirement funds.

If they see value in doing so, the asset managers are permitted to invest up to 75% of the Fund’s assets in shares. As shares are the most volatile asset class, negative returns in some years are possible.

The portfolio is run by three asset managers who have been appointed with “full discretion” mandates. The managers are required to maximise your expected fund credit on retirement, taking the relevant risks into consideration.

The managers are expected to select and weight the various asset classes at the appropriate times to optimise the returns in the changing market conditions.

The trustees have appointed three asset managers with different investment styles that complement each other. They did this to achieve a superior combined short-term and medium to long term performance.

1.    Foord Asset Management

2.    Allan Gray Asset Management