The KBCAM Diversified Solution The KBCAM Diversified Solution enables clients to customise their liability and growth needs. It is also the only product that diversifies clients’ investment risk through a variety of asset classes, investment managers and investment styles: “True Diversification”.
Investment Advice with Foresight
The KBCAM Diversified Solution DELIVERING TRUE diversification Diversification has been the cornerstone of modern portfolio theory and since the 1970s KBCAM has continuously sought out and achieved this diversification through a number of different strategies. However, markets change and over the past thirty years factors such as globalisation have conspired to reduce the level of diversification offered by previously tried and tested strategies. For example, simply spreading the international coverage of equity investment was enough to deliver diversification gains up until the beginning of the century. Since then, however, globalisation has created a high level of similarity across all equity markets in the developed world. Indeed, recent events have shown the propensity of various investment classes to all move in the same direction due to the changes that have occurred in the markets over the past decade and more. This has challenged previously accepted views of diversification. In the past we sought diversification by investing in additional overseas equity markets. But new equity markets will not in themselves provide a solution for the reduced level of diversification that portfolios are experiencing at present. As a result, KBC Asset Management has launched its new truly diversified solution.
INVESTMENT STRATEGY The return objective of the growth asset within the portfolio is to achieve 6-8 % per annum over a 5 year period, mirroring client investment return needs, thereby getting away from the short term peer group comparisons. The KBCAM Diversified Solution uses best-in-class managers in the areas of liability management, equity, alternative investments, fixed income and property to provide a diversified portfolio to our clients, with a lower risk profile than the traditional model. We utilise the manager selection expertise of Mercer Global Investments to find the best equity, fixed income and liability hedging managers worldwide. Our alternative investments are sourced via the Fusion Alternatives Investment Programme, in partnership with Acuvest. As an investment specialist KBCAM knows that no one investment manager can be an expert in all aspects of financial markets. Therefore we have teamed up with world-class experts in specialised areas.
REASONS TO INVEST Tailored solution to your liability and growth needs - We know all clients are not the same, only you can decide your own liability and return allocation. Targeted return of 6-8 % per annum over a 5 year period - The target return is set to your needs, not to a peer group average. True Diversification - Diversifies risk not just by asset allocation but also by investment manager and investment style e.g. growth vs value. Reduces the volatility of growth returns - Returns are not the only goal, we understand you want less volatility of returns. Diversification provides this reduced volatility. Investment strategy is not static - Financial markets will change over time and your investment strategy will evolve with these changes.
The KBCAM Diversified Solution
How much Liability do you Hedge?
Assets Targeting 6-8%p.a.
Liability Hedging Fund
Diversified Growth Fund
Diversification has always been the cornerstone of modern portfolio theory. Mixing uncorrelated assets together in one portfolio reduces volatility and gives exposure to a wide array of drivers of performance. With increased globalisation and more integrated and complex financial markets, pension funds have to search further than ever before to ensure their investment portfolios are truly diversified. This is why we have included allocations to emerging markets, thematic equities and alternatives in the KBCAM Diversified Solution.
As pension trustees and advisors you also need to Manager Asset Style Diversification Diversification Diversification ensure that the decision makers for various elements of your pension fund are all experts in their specialist fields. No one person or company can claim such a mantle. This is why we believe in blending the worldâ€™s best investment managers of equities, bonds, fixed interest, alternatives and property into one investment product. KBCAM will feature as investment manager only in those parts of the portfolio where we can genuinely claim to have a world-class capability. You also know that the external macro, regulatory and investment environment around which your pension fund operates will continually change. Your pension fund therefore requires a dynamic solution where allocations are not set in stone and can be meaningfully changed if it helps attain the targeted return of 6-8% per annum over 5 years. The KBCAM Diversified Solution is built to accommodate significant shifts in the underlying investment exposure with eyes on the targeted return at all times.
WHO SHOULD INVEST IN THE KBCAM DIVERSIFIED SOLUTION? This adaptable and truly diversified solution should interest all Irish pension trustees who are seeking an effective means of addressing the liability and growth needs of their schemes. The KBCAM Diversified Solution enables you, with the help of your investment consultant, to manage both your liability and growth needs.
About KBC Asset Management Our business is underpinned by a strong conviction that investors need to properly diversify and that the most successful investment managers are the ones who adopt a specialised approach. We believe investors, particularly pension funds, need to diversify, not just across asset classes but also across investment strategies to generate consistent investment performance with less risk. To meet these needs we are committed to: • • •
Providing differentiated and innovative strategies Employing specialist investment teams Being early to market with investment concepts of the future
At KBCAM, we believe we have a clear competitive advantage on each of these fronts. We are one of the leading providers of innovative and specialised investment solutions and we have the experience and resources to run very successful autonomous investment teams. Our innovative products are also distributed globally including the U.S., Canada, Japan, Korea, Ireland and the UK. As such, we provide different investment products that are aimed at exploiting different types of inefficiencies across markets and are sensitive to different factors and events. Our key product offerings are: - - -
Environmental Equity Strategies Dividend Plus Equity Strategies Multi-Asset Strategies
At KBCAM we are committed to your success.
Contact: To find out more about the KBCAM Diversified Solution contact John Griffith on Tel: (01) 438 4456 or email firstname.lastname@example.org
This document does not constitute or form part of any offer to issue or sell, or any solicitation of any offer to subscribe or purchase any security, product or service including any fund managed by KBC Asset Management Ltd. The opinions expressed in this document are based upon publicly available information at the time of publication and are subject to change without notice. The views expressed in this document are expressions of opinion only and should not be construed as investment advice. Past performance may not be a reliable guide to future performance and the value of investments may go down as well as up. Changes in exchange rates may have an adverse effect on value, price or income of the product. KBC Asset Management Ltd. is regulated by the Financial Regulator.
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