Royal London’s Governed Portfolios prove that diversification delivers with strong ten year performance

7 min read

 
Helen Morrissey, Personal Finance Specialist

Helen Morrissey

Corporate PR Specialist – Long Term Savings

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Royal London’s Governed Portfolio range - a suite of nine portfolios designed to suit pension investors across a range of risk appetites and investment horizons – is celebrating its tenth anniversary by posting strong results across all portfolios. 

Performance figures show that £100,000 invested on 12 January 2009 in Governed Portfolio Five which is aimed at the balanced, medium term investor would now be worth £223,950. The same amount invested in Governed Portfolio Seven which is aimed at the adventurous long term investor would be worth £241,154 today (see table below).

 

£100k single investment made on 12 January 2009 would generate

Governed Portfolio 1

£223,730

Governed Portfolio 2

£211,506

Governed Portfolio 3

£169,973

Governed Portfolio 4

£232,767

Governed Portfolio 5

£223,950

Governed Portfolio 6

£188,002

Governed Portfolio 7

£241,154

Governed Portfolio 8

£234,170

Governed Portfolio 9

£199,528


Similarly an investor putting £300 per month into Governed Portfolio Five since 12 January 2009 would now have a fund value of £51,522. The same in Portfolio Seven would have generated a fund of £53,490.

The portfolios are one of the biggest multi-asset propositions designed for pensions with approximately £25bn assets under management. The mutual insurer puts this strong performance down to diversification, high levels of governance and rigorous risk management.

Invested across 8 different asset classes, including equities, property and commodities, these portfolios are one of the most diversified multi-asset solutions in the marketplace. This diversification enables the portfolios to be resilient and deliver above inflation returns in the face of market uncertainty that has included events such as the Global Financial Crisis and Brexit.

Lorna Blyth, head of Investment Solutions at Royal London Intermediary said:

“The performance posted by our Governed Portfolios on their tenth anniversary is proof that diversification delivers even in the most challenging market conditions. People saving for retirement need to know they are invested in something that delivers good rates of return over the long term and the portfolios’ track record shows they have achieved this.”

 

Notes to Editors

About the Governed Portfolios

 

Broad risk category and term

Governed Portfolio 1

Cautious long term

Governed Portfolio 2

Cautious medium term

Governed Portfolio 3

Cautious short term

Governed Portfolio 4

Balanced long term

Governed Portfolio 5

Balanced medium term

Governed Portfolio 6

Balanced short term

Governed Portfolio 7

Adventurous long term

Governed Portfolio 8

Adventurous medium term

Governed Portfolio 9

Adventurous short term

 The portfolios also benefit from tactical asset allocation tilts by RLAM’s head of Multi-Asset, Trevor Greetham. There is a robust governance process with an Investment Advisory Committee meeting every quarter to review investment options and asset allocation so customers are reassured that each portfolio is on target to achieve its particular level of risk and income.

About Royal London:

Royal London is the largest mutual life, pensions and investment company in the UK, with funds under management of £117 billion, 8.8 million policies in force and 3,745 employees. Figures quoted are as at 30 June 2018.

For further information please contact:

Helen Morrissey, Corporate PR Specialist – Long Term Savings