Investment Philosophy
Our investment philosophy is framed by a set of fundamental beliefs:
- Long-term investments out-perform short-term investments.
- The benchmark asset allocation of a fund is the primary driver of investment risk and return.
- A well-diversified portfolio providing exposure to a carefully selected mix of asset classes is necessary for investors to meet their investment goals.
- We value quality, simplicity and transparency when selecting investments.
- By offering multi-asset-class funds, we maximise diversification for investors.
- The importance of strong governance and efficient portfolio management and implementation.
- The relationship between risk and return means that growth assets are likely to deliver higher returns over time but may be more volatile (prices falling as well as rising) while income assets are usually less volatile but are also likely to deliver a lower return over the long term.
- The integration of environmental, social and governance (ESG) factors into our investment management processes because we believe that these factors are some of the drivers of long-term value for the Scheme’s members and their investments.
Investment strategy
Lifetime seeks to offer a variety of Funds that cater to a diverse range of members with differing needs and objectives.
Lifetime makes recommendations to the Trustee on the Funds and the selection of underlying funds and underlying fund managers.
The following criteria are considered when assessing or reviewing an investment’s inclusion into the Funds created by Lifetime:
- The investment objectives.
- The benchmark asset allocation.
- The benchmark asset allocation ranges (or limits).
- The index or composite index that performance is measured against.