While the challenges facing US pensions receive widespread attention, potential solutions do not. With the pension system likely to come under further strain as more workers enter retirement, asset owners need to think outside the box and move away from the traditional allocations that have patently not worked.
At Ninety One, we understand that the primary route by which plans must dig themselves out of this hole is through public equities. Through our proprietary Quality approach, we philosophically believe the most effective way to maximize equity returns is to adhere to a long-term approach, compound steady gains as the market rises and, most importantly, to minimize losses.
In this paper, our Quality investment team examines how our Global Franchise strategy can effectively pair with and complement traditional growth, value and core offerings, as well as increasingly utilized sub-styles such as low-volatility strategies, in order to increase diversification and achieve a smoother return stream.
Clyde Rossouw, Portfolio Manager, Ninety One
Elias Erickson, Portfolio Manager, Ninety One