Investment Philosophy

Investments

Each Fund has formalised an investment strategy that documents their investment objectives, monitoring and risk management policy. Appropriate asset Managers are individually evaluated against a set criteria and appointed by the Board of Trustees. The Board of Trustees have selected specific risk profiled portfolios that should address the investment needs of all fund members and are managed by the appointed Asset Managers to try and achieve the funds defined investment objectives. The funds have an Investment Philosophy and Options document that can be downloaded for more information.

The Board of Trustees actively monitor the appointed asset Managers and their Portfolios and may change these Managers and/or Portfolios on the basis of extensive qualitative and quantitative research.

The Management Committee (Manco) of each employer will not have the burden of appointing and reviewing Asset Managers, as this function will performed by the Fund’s professional Board of Trustees on an ongoing basis. The Management Committee will however be required to select the most appropriate investment option and Portfolio(s) applicable to its members, from the pre-approved set of Portfolios.

Options available for election by Manco’s

Elemental Option

Elemental is a cost-effective option that has been designed for those clients who want very little involvement in portfolio election and flexibility. The investment options are limited to either one portfolio or a selection of portfolios (max. 4) or the Fund’s Life Stage Model that would apply to all their members.

Default Portfolio

Each Management Committee or employer may elect to invest members’ fund assets and future contributions in one or more default investment portfolios (max. 4) that would apply to all employees. A Cash Protection Option, whereby members close to retirement can transfer their fund benefit and future contributions to a less volatile investment option, can be accommodated.

Life Stage Models

The employer may prefer to opt for the Life Stage Model investment strategy. The Life Stage Model investment strategy has been developed to automatically invest members assets in the investment portfolios that are most suitable for them based on their years to retirement. The model reflects an appropriate allocation for the average member, based on his/ her age and years to retirement, and switches the member to a new investment portfolio when he/ she moves into a defined age group in other words, should an employer choose life stage as the investment channel, the investment decisions are automatically made for the member, according to a pre-determined table based on years to retirement.

Designer Option

The Designer option is for those clients wanting to offer their members a wider range of choice or flexibility. Member Investment Choice is offered from a predetermined range of portfolios subject to certain restrictions set by the Trustees from time to time.

Member Investment Choice

The Verso Umbrella Retirement Funds allow for Member Investment Choice. Each member can therefore choose, from a list of portfolios preselected by the Manco, that suite his or her personal risk profile and circumstances. Switches are permitted at a predetermined fee.

More information is available from your consultant or please contact us for assistance.