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“Any customer can have a car painted any colour that he wants so long as it is black” Henry Ford
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Not all ‘off the shelf’ is value.
Basics that fit your budget Quality Affordability Choice A journey to be relished
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Off the Shelf Customised Flexibility Limited to product available Highly Flexible Minimums Low entry point Tend to be higher Liquidity Can be very high Depends on strategy Ownership Unitisation Vehicle Scheme / Vehicle Expertise Less Higher level of advice needed Management / Governance Easier to manage Requires more time of investment committees Cost Lower Used to be higher
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Investment Platform Independant Actuarial Consultants Scheme Administrator Medical Scheme Trustees Client / Investor Platform Provider, Pooling Assets, Portfolio Administrator Investment Advisor Blend of Asset Managers Deals with day to day operations' 1)! ' /*. '
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Increasing allocation to assets that behave like their liabilities
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Spreading the risk budget across asset classes
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More active asset allocation Reducing risk budget for assets preserving solvency
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Off the Shelf Customised Limited Involvement with Scheme Investments Active involvement – seen as integral part of Scheme sustainability As part of a customised solution Want to “sweat” Scheme investments Not looking to add return above cash Seeking to enhance return, but in a manner which considers Scheme liabilities Looking for cheap Looking for value
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