The LV= Employee Pension Scheme (DB section) is valued at approximately £1.3 billion and has some 11,000 members.[1] It is advised by investment consultant Redington who assisted with the search.
The Threadneedle Dynamic Real Return fund offers investors well diversified, active asset allocation and active underlying funds. Managed by Toby Nangle, Head of Asset Allocation, EMEA, it seeks to deliver equity-like returns with two thirds of the volatility. It takes a ‘go anywhere’ approach by exploiting market inefficiencies and dynamically allocating between equities, fixed income, commodities, property, alternatives and cash.
The fund has a consistent track record of outperformance, having delivered 6.9%[2] per annum since inception in June 2013, exceeding its performance target of CPI +4%. It has been designed as a risk efficient, return-seeking investment for DB Schemes and as a default option for Defined Contribution (DC) Schemes. Columbia Threadneedle Investments’ own DB and DC Schemes invest in the fund.
Paul Cassidy, Chairman of Trustees at LV= Employee Pension Scheme, said:
“Our employee pension scheme has a long-standing relationship with Columbia Threadneedle Investments, which has been managing a large proportion of our assets in various mandates over the last few years. The firm has a strong track record in multi asset investing spanning two decades. We were attracted by the Threadneedle Dynamic Real Return fund as it has proven a successful strategy for investors looking for equity-like returns with lower volatility.”
Andrew Nicoll, Global Head of Insurance at Columbia Threadneedle Investments, said:
“We manage £9.5 billion for LV= and value our long-standing, strategic partnership. Asset allocation and multi asset mandates are a core competency of ours and we are pleased that the LV= Employee Pension Scheme is investing in our flagship Diversified Growth fund. The fund’s dynamic multi asset approach is able to swiftly react to and take advantage of divergence in risk and market returns. It is a good option for pension schemes looking to invest for long-term growth. We look forward to continuing to deliver strong returns for LV= and meeting the investment needs of its pension scheme.”
Columbia Threadneedle Investments in EMEA manages approximately £42.5 billion[3] in multi asset portfolios. Its Asset Allocation Strategy Group consists of nine senior members from the company’s global investment team, including Toby Nangle and EMEA CIO Mark Burgess. The company has last year expanded its wider multi asset capability, with Maya Bhandari joining as Multi Asset Investment Strategist from Citigroup and Craig Nowrie joining as Client Portfolio Manager from Aon Hewitt. In July 2014, the firm launched the Threadneedle Global Multi Asset Income Fund in response to the UK pension reforms.
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