MLC adds ‘unconventional’ LTAR strategies
MLC has appointed two new investment managers for its Long-Term Absolute Return (LTAR) portfolio, in line with the portfolio’s overall strategy of “investing in unconventional investment strategies”.
The two new managers are Bridgewater Associates, which brings its Pure Alpha Strategy to the LTAR portfolio, and Nephila Capital, which offers an Insurance Related Investments (IRI) strategy.
Launched in 2005, MLC’s LTAR strategy is a multi-manager, multi-asset class portfolio designed to deliver net real returns to investors over a 20-year period
MLC chief investment officer Chris Condon said the inclusion of the Pure Alpha Strategy was aimed at “enhancing the real return characteristics of the LTAR strategy by exploiting manager skill, while the IRI provided an excellent source of diversification”.
Condon described both the Pure Alpha Strategy and the IRI as “great examples of LTAR’s investment strategy of applying unconventional investment strategies to create wealth over the long term”.
“Both of these investments require a long-term investment perspective that is fearlessly independent of traditional approaches and, because they are uncorrelated to other sources of return currently accessed by the LTAR, they reduce the overall risk of the portfolio,” he said.
“In fact, because the reduction in risk is more than what is required for the portfolio’s 20 year objective, we have increased the level of gearing to improve overall expected returns without materially impacting overall risk.”
Recommended for you
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
As advisers seek greater insights into FSCP determinations, what are the various options considered by the panel and can a decision be appealed?
Amid the current financial adviser shortage, advice firm Link Wealth is looking to expand its financial literacy program for high school students across the country.
TAL Risk Academy has updated its range of ethics courses to help financial advisers meet their CPD requirements following adviser feedback, including interpreting FSCP determinations.
