This is for financial adviser use only and shouldn’t be relied upon by any other person.
BALANCED LIFESTYLE STRATEGY (DRAWDOWN)
ANNUAL REVIEW
Introduction
This document provides a rolling annual review of the Balanced Lifestyle Strategy (Drawdown) and is designed to
assist you in preparing your client reports. The information is provided on a sample basis only and you should ensure
that your own final version satisfies your compliance requirements. For more information about our Lifestyle
Strategies please visit adviser.royallondon.com/investment.
Investment objective
This strategy aims to deliver above inflation growth in the value of the fund at retirement. It has been designed to
support regular income withdrawals when you retire, whilst taking a level of risk consistent with a balanced risk
attitude.
Benchmark allocations
The strategy is invested in the Governed Portfolios shown. You will be automatically invested into the strategy at the
point that matches your time to retirement.
As you approach retirement your money is automatically switched to ensure a gradual move between the portfolios
and fund splits shown below. The switching occurs on a monthly basis on, or as close as possible to, the date on which
your birthday falls.
At 15yrs+
At 10yrs
Gov erned Portfolio 4
67 .50% Equity
1 7 .50% Property
5.00%
Commodities
1 .66%
Gilts (1 5y r)
1 .67 %
Index linked Bonds (1 5 y r)
1 .67 %
Corporate bonds (1 5y r)
5.00%
Absolute Return Strategies (including cash)
At 5yrs
Gov erned Portfolio 5 (Drawdown)
55.00% Equity
1 5.00% Property
5.00%
Commodities
2.50%
Global High Y ield Bond
5.00%
Gilts (1 0y r)
3.7 5%
Index linked Bonds (1 5 y r)
1 .25%
Index linked Bonds (1 0 y r)
5.00%
Corporate bonds (1 0y r)
7 .50%
Absolute Return Strategies (including cash)
Retirement
Gov erned Portfolio 6 (Drawdown)
32.50% Equity
1 2.50% Property
5.00%
Commodities
2.50%
Global High Y ield Bond
1 1 .66%
Gilts (5y r)
5.84%
Index linked Bonds (1 5 y r)
5.83%
Index linked Bonds (5 y r)
1 1 .67 %
Corporate bonds (5y r)
1 2.50% Absolute Return Strategies (including cash)
Gov erned Retirem ent Incom e Portfolio 3
2 3 .00%
2 8.50%
2 0.50%
2 0.00%
8.00%
Equity
Medium (1 0y r) Corporate Bonds
Medium (1 0 y r) Index linked Bonds
Sterling Extra Yield Bond
Property
Ongoing governance
Your Lifestyle Strategy comes with ongoing governance. This simply means that our investment experts check it
regularly. It allows us to maintain the best mix of assets in line with the risk category - and to make sure it is
performing in line with its overall objectives - aiming to give you the best returns. The value of your investment can go
down as well as up and you may not get back the value of the original investment.
If our experts decide that the mix of assets needs to be adjusted, it happens automatically on your behalf, you don't
need to do anything. What's more, this service comes at no extra cost.
Latest tactical allocations at 11/05/2017
At 15yrs+
At 10yrs
At 5yrs
Retirement
Gov erned Portfolio 4
7 2.50% RLP Global Managed
1 7 .50% RLP Property
6.00% RLP Commodity
0.50% RLP Global High Y ield
0.50% RLP Short Duration Global High Y ield
1 .09% RLP Long (1 5y r) Gilt
0.50% RLP Long (1 5y r) Index Linked
1 .08% RLP Long (1 5y r) Corporate Bond
0.33% RLP Deposit
Gov erned Portfolio 5 (Annuity )
60.00% RLP Global Managed
1 5.00% RLP Property
6.00% RLP Commodity
2.00% RLP Global High Y ield
1 .50%
RLP Short Duration Global High Y ield
0.37 % RLP Long (1 5y r) Gilt
0.1 3%
RLP Medium (1 0y r) Gilt
3.7 5% RLP Long (1 5y r) Index Linked
1 .25%
RLP Medium (1 0y r) Index Linked
4.50% RLP Long (1 5y r) Corporate Bond
1 .50%
RLP Medium (1 0y r) Corporate Bond
1 .25%
RLP Absolute Return Gov ernment Bond
2.7 5% RLP Cash Plus
Gov erned Portfolio 6 (Annuity )
36.50% RLP Global Managed
1 2.50% RLP Property
6.00%
RLP Commodity
2.00%
RLP Global High Y ield
1 .50%
RLP Short Duration Global High Y ield
3.33%
RLP Long (1 5y r) Gilt
3.33%
RLP Medium (1 0y r) Gilt
5.84%
RLP Long (1 5y r) Index Linked
5.83%
RLP Medium (1 0y r) Index Linked
6.34%
RLP Long (1 5y r) Corporate Bond
6.33%
RLP Medium (1 0y r) Corporate Bond
4.50%
RLP Absolute Return Gov ernment Bond
5.7 5%
RLP Cash Plus
0.25%
RLP Deposit
Gov erned Retirem ent Incom e Portfolio 3
26.7 5% RLP Global Managed
8.00% RLP Property
0.25% RLP Global High Y ield
0.25% RLP Short Duration Global High Y ield
20.25% RLP Sterling Ex tra Y ield Bond
1 8.62% RLP Medium (1 0y r) Index Linked
25.88% RLP Medium (1 0y r) Corporate Bond
This is for financial adviser use only and shouldn’t be relied upon by any other person.
Performance at 31/12/16
Past performance is not a guide to the future. Prices can fall as well as rise meaning you may not get back the value of
your original investment. Investment returns may fluctuate and are not guaranteed.
Percentage Change
Compound Annual
31/12/2015
31/12/2014
31/12/2013
31/12/2012
31/12/2011
31/12/2016
31/12/2015
31/12/2014
31/12/2013
31/12/2012
%Chg
%Chg
%Chg
%Chg
%Chg
3 Years
5 Years
Governed Portfolio 4
15.08
3.77
8.28
17.22
9.07
8.94
10.56
Composite benchmark
16.89
2.35
8.26
14.77
8.69
9.00
10.06
Difference
-1.81
1.42
0.02
2.45
0.38
-0.06
0.50
Governed Portfolio 5 (Drawdown)
14.27
3.07
9.01
14.16
N/A
8.68
N/A
Composite benchmark
15.70
1.82
9.10
11.81
N/A
8.72
N/A
Difference
-1.43
1.25
-0.09
2.35
N/A
-0.04
N/A
Governed Portfolio 6 (Drawdown)
11.58
2.08
8.06
8.35
N/A
7.16
N/A
Composite benchmark
11.91
0.91
8.65
6.48
N/A
7.05
N/A
Difference
-0.33
1.17
-0.59
1.87
N/A
0.11
N/A
GRIP 3
12.42
1.63
9.76
8.37
N/A
7.83
N/A
Composite Benchmark
14.41
0.48
9.85
5.71
N/A
8.08
N/A
Difference
-1.99
1.15
-0.09
2.66
N/A
-0.25
N/A
Portfolio Name
Growth Rate (%)
Tracker lifestyle strategies
Performance of portfolios with the RLP BlackRock Aquila Global Blend fund replacing the RLP Global Managed fund
for equity content.
Percentage Change
31/12/2015
31/12/2014
31/12/2013
31/12/2012
31/12/2011
Compound Annual
31/12/2016
31/12/2015
31/12/2014
31/12/2013
31/12/2012
Growth Rate (%)
%Chg
%Chg
%Chg
%Chg
%Chg
3 Years
5 Years
Governed Portfolio 4
17.29
2.70
8.60
16.24
8.95
9.36
10.61
Governed Portfolio 5 (Drawdown)
16.08
2.20
9.28
13.38
N/A
9.03
N/A
Governed Portfolio 6 (Drawdown)
12.58
1.59
8.22
7.91
N/A
7.36
N/A
GRIP 3
13.21
N/A
N/A
N/A
N/A
N/A
N/A
Portfolio Name
Active lifestyle strategies
Performance of portfolios with the RLP Global Blend Core Plus (Rathbone Global Alpha) fund replacing the RLP
Global Managed fund for equity content.
Percentage Change
31/12/2015
31/12/2014
31/12/2013
31/12/2012
31/12/2011
Compound Annual
31/12/2016
31/12/2015
31/12/2014
31/12/2013
31/12/2012
Growth Rate (%)
%Chg
%Chg
%Chg
%Chg
%Chg
3 Years
5 Years
Governed Portfolio 4
11.02
5.76
7.67
16.90
10.42
8.12
10.28
Governed Portfolio 5 (Drawdown)
10.88
4.70
8.50
13.90
N/A
7.99
N/A
Governed Portfolio 6 (Drawdown)
9.63
2.98
7.77
8.20
N/A
6.75
N/A
GRIP 3
10.89
N/A
N/A
N/A
N/A
N/A
N/A
Portfolio Name
Source: Lipper, bid to bid, as at 31.12.2016, Royal London, as at 31.12.2016. All performance figures, including the figures shown
for the growth in the benchmark, have been calculated net of the annual management charge applicable to each fund. Please note
that the Governed Portfolios and their benchmarks are rebalanced on a monthly basis.
This is for financial adviser use only and shouldn’t be relied upon by any other person.
Performance at 30/04/17
Past performance is not a guide to the future. Prices can fall as well as rise meaning you may not get back the value of
your original investment. Investment returns may fluctuate and are not guaranteed.
Percentage Change
Compound Annual
30/04/2016
30/04/2015
30/04/2014
30/04/2013
30/04/2012
30/04/2017
30/04/2016
30/04/2015
30/04/2014
30/04/2013
%Chg
%Chg
%Chg
%Chg
%Chg
3 Years
5 Years
Governed Portfolio 4
16.95
-0.91
12.59
8.19
14.28
9.26
10.03
Composite benchmark
17.57
-1.09
12.04
6.58
14.80
9.21
9.77
Difference
-0.62
0.18
0.55
1.61
-0.52
0.05
0.26
Governed Portfolio 5 (Drawdown)
15.38
-0.48
12.09
6.66
N/A
8.77
N/A
Composite benchmark
15.94
-0.64
11.62
5.01
N/A
8.74
N/A
Difference
-0.56
0.16
0.47
1.65
N/A
0.03
N/A
Governed Portfolio 6 (Drawdown)
11.71
0.44
9.13
3.87
N/A
6.98
N/A
Composite benchmark
11.49
0.15
9.03
2.31
N/A
6.77
N/A
Difference
0.22
0.29
0.10
1.56
N/A
0.21
N/A
GRIP 3
14.53
0.08
9.80
4.35
N/A
7.96
N/A
Composite Benchmark
12.95
0.43
9.58
2.19
N/A
7.51
N/A
Difference
1.58
-0.35
0.22
2.16
N/A
0.45
N/A
Portfolio Name
Growth Rate (%)
Tracker lifestyle strategies
Performance of portfolios with the RLP BlackRock Aquila Global Blend fund replacing the RLP Global Managed fund
for equity content.
Percentage Change
30/04/2016
30/04/2015
30/04/2014
30/04/2013
30/04/2012
Compound Annual
30/04/2017
30/04/2016
30/04/2015
30/04/2014
30/04/2013
Growth Rate (%)
%Chg
%Chg
%Chg
%Chg
%Chg
3 Years
5 Years
Governed Portfolio 4
17.18
-0.10
12.31
7.39
15.08
9.54
10.19
Governed Portfolio 5 (Drawdown)
15.57
0.21
11.87
6.00
N/A
9.00
N/A
Governed Portfolio 6 (Drawdown)
11.83
0.83
9.01
3.49
N/A
7.11
N/A
GRIP 3
14.61
0.40
N/A
N/A
N/A
N/A
N/A
Portfolio Name
Active lifestyle strategies
Performance of portfolios with the RLP Global Blend Core Plus (Rathbone Global Alpha) fund replacing the RLP
Global Managed fund for equity content.
Percentage Change
Compound Annual
30/04/2016
30/04/2015
30/04/2014
30/04/2013
30/04/2012
30/04/2017
30/04/2016
30/04/2015
30/04/2014
30/04/2013
%Chg
%Chg
%Chg
%Chg
%Chg
3 Years
5 Years
Governed Portfolio 4
16.43
-0.36
11.79
8.78
14.07
9.04
9.97
Governed Portfolio 5 (Drawdown)
14.94
-0.05
11.44
7.11
N/A
8.57
N/A
Governed Portfolio 6 (Drawdown)
11.50
0.64
8.77
4.09
N/A
6.87
N/A
GRIP 3
14.34
0.25
N/A
N/A
N/A
N/A
N/A
Portfolio Name
Growth Rate (%)
Source: Lipper, bid to bid, as at 30.04.2017, Royal London, as at 30.04.2017. All performance figures, including the figures
shown for the growth in the benchmark, have been calculated net of the annual management charge applicable to each fund.
Please note that the Governed Portfolios and their benchmarks are rebalanced on a monthly basis.
This is for financial adviser use only and shouldn’t be relied upon by any other person.
Annual Review Log
Date
Details
11/05/2017
20/04/2017
09/03/2017
IAC Meeting –
28/02/2017
19/01/2017
Governed Portfolio 4
With global growth indicators peaking, markets could encounter some volatility over the summer. We
have maintained a small overweight in equities and have increased exposure to global high yield as a
lower risk way of getting corporate exposure. Within equities, we favour Europe on the back of improved
growth indicators and a more stable political outlook. Recent signs of weaker economic activity in China
led us to trim back our exposure to commodities.
Governed Portfolio 5 (Drawdown)
We have maintained a small overweight in equities and have increased exposure to global high yield as a
lower risk way of getting corporate exposure. Recent signs of weaker economic activity in China led us to
trim back our exposure to commodities. We increased exposure to index-linked bonds but remain
underweight. Yields rose on the announcement of a snap UK general election, but a fading of global
growth and inflation indicators suggests limited upside in yields with some risk of a sudden downward
move should stock markets encounter volatility.
Governed Portfolio 6 (Drawdown)
We have maintained a small overweight in equities and have increased exposure to global high yield as a
lower risk way of getting corporate exposure. Recent signs of weaker economic activity in China led us to
trim back our exposure to commodities. We increased exposure to gilts, and decreased exposure to
corporate bonds. Yields rose on the announcement of a snap UK general election, but a fading of global
growth and inflation indicators suggests limited upside in yields with some risk of a sudden downward
move should stock markets encounter volatility.
Governed Portfolio 4
We have reduced our exposure to equities ahead of the typically volatile summer months and spread the
proceeds across global high yield, property, gilts and cash. We have also added to our holdings in
Commodities in order to retain some exposure to a strengthening global economy. The overall change
seeks to reduce risk within the portfolio at a time of heightened geopolitical risk.
Governed Portfolio 5 (Drawdown)
We have reduced our exposure to equities ahead of the typically volatile summer months and spread the
proceeds across global high yield, index linked gilts and cash. We have also added to our holdings in
Commodities in order to retain some exposure to a strengthening global economy. The overall change
seeks to reduce risk within the portfolio at a time of heightened geopolitical risk.
Governed Portfolio 6 (Drawdown)
We have reduced our exposure to equities ahead of the typically volatile summer months and spread the
proceeds across global high yield and gilts. We have also added to our holdings in Commodities in order
to retain some exposure to a strengthening global economy. The overall change seeks to reduce risk
within the portfolio at a time of heightened geopolitical risk.
Governed Retirement Income Portfolio 3
We have reduced our exposure to equities ahead of the typically volatile summer months and spread the
proceeds across a range of bond funds. The overall change seeks to reduce risk within the portfolio at a
time of heightened geopolitical risk.
Governed Portfolio 5 (Drawdown)
We have increased our exposure to longer duration gilts and corporate bonds in order to smooth the
glidepath towards annuity purchase.
Governed Portfolio 6 (Drawdown)
We have increased our exposure to longer duration gilts and corporate bonds in order to smooth the
glidepath towards annuity purchase. We took advantage of the recent rise in UK bonds to sell some of
our holdings in short dated gilts and invested the proceeds into cash.
Each Governed Lifestyle Strategy continues to be appropriate for its risk profile and investment
objective.
Governed Portfolio 4
We have further increased our exposure to equities where we favour Japan and remain underweight US
and Europe. Commodities should benefit from an improvement in Chinese growth and US dollar
strength and we have now taken an overweight position. We remain underweight long dated gilts,
corporate bonds and cash and have slightly reduced exposure to Property within this portfolio.
Governed Portfolio 5 (Drawdown)
We have further increased our exposure to equities where we favour Japan and remain underweight US
and Europe. Commodities should benefit from an improvement in Chinese growth and US dollar
strength and we have now taken an overweight position. We remain underweight medium dated gilts
and cash and have maintained a small overweight in medium dated corporate bonds.
Governed Portfolio 6 (Drawdown)
We have further increased our exposure to equities where we favour Japan and remain underweight US
and Europe. Commodities should benefit from an improvement in Chinese growth and US dollar
strength and we have now taken an overweight position. We have further reduced our holdings in gilts
and cash and have maintained an overweight position in short dated corporate and global high yield
bonds.
Governed Retirement Income Portfolio 3
We have further increased our exposure to equities, where we favour Japan and remain underweight US
and Europe. We have further reduced our holdings in index linked gilts, gilts and corporate bonds and
maintained a slight overweight position in UK high yield.
This is for financial adviser use only and shouldn’t be relied upon by any other person.
01/12/2016
IAC Meeting 01/12/2016
10/11/2016
13/10/2016
Governed Portfolio 4
We have reduced the exposure to equities (-1.25%) and increased the exposure to absolute return
strategies (including cash) (0.25%) and 15 year government bonds (1.00%).
Overall the asset allocation remains overweight in equity and underweight index-linked bonds,
corporate bonds, government bonds and absolute return strategies (including cash). The allocation is
neutral commodities, property.
Governed Portfolio 5 (Drawdown)
We have reduced the exposure to equities (-1.25%) and 10 year corporate bonds (-0.25%) and increased
the exposure to 10 year government bonds (1.25%), 10 year index-linked bonds (0.06%) and 15 year
index-linked bonds (0.19%).
Overall the asset allocation remains overweight in equity and corporate bonds and underweight in
government bonds, index-linked bonds and absolute return strategies (including cash). The allocation is
neutral property, commodities and high yield bonds.
Governed Portfolio 6 (Drawdown)
We have reduced the exposure to equities (-1.00%) and 5 year corporate bonds (-0.25%) and increased
the exposure to 5 year government bonds (1.00%) and absolute return strategies (including cash)
(0.25%).
Overall the asset allocation remains overweight in equity and corporate bonds and underweight in
government bonds and absolute return strategies (including cash). The allocation is neutral property,
index-linked bonds, commodities and high yield bonds.
Governed Retirement Income Portfolio 3
We have reduced the exposure to equities (-0.91%) and high yield bonds (-0.25%) and increased the
exposure to 10 year index-linked bonds (0.46%) and 10 year corporate bonds (0.70%).
Overall the asset allocation remains overweight in equity, government bonds and high yield bonds and
underweight in corporate bonds and index-linked bonds. The allocation is neutral property.
Each Governed Lifestyle Strategy continues to be appropriate for its risk profile and investment
objective.
Governed Portfolio 4
We have reduced the exposure to 15 year corporate bonds (-0.25%) and increased the exposure to
absolute return strategies (including cash) (0.25%).
Overall the asset allocation is now overweight in equity and underweight index-linked bonds, corporate
bonds, government bonds and absolute return strategies (including cash). The allocation is neutral
commodities, property.
Governed Portfolio 5 (Drawdown)
We have reduced the exposure to 15 year index-linked bonds (-0.57%), 10 year index-linked bonds (0.18%) and 10 year corporate bonds (-0.50%) and increased the exposure to absolute return strategies
(including cash) (1.25%).
Overall the asset allocation is now overweight in equity and corporate bonds and underweight in
government bonds, index-linked bonds and absolute return strategies (including cash). The allocation is
neutral property, commodities and high yield bonds.
Governed Portfolio 6 (Drawdown)
We have reduced the exposure to 5 year government bonds (-1.00%) and 5 year corporate bonds (0.50%) and increased the exposure to absolute return strategies (including cash) (1.50%).
Overall the asset allocation is now overweight in equity and corporate bonds and underweight in
government bonds and absolute return strategies (including cash). The allocation is neutral property,
index-linked bonds, commodities and high yield bonds.
Governed Retirement Income Portfolio 3
We have considered the asset allocation of GRIP 3 and decided to make no change at this time.
Overall the asset allocation remains overweight in equity, government bonds and high yield bonds and
underweight in corporate bonds and index-linked bonds. The allocation is neutral property.
Governed Portfolio 4
We have reduced the exposure to absolute return strategies (including cash) (-1.50%) and increased the
exposure to equities (1.25%) and commodities (0.25%).
Overall the asset allocation is now overweight in equity, corporate bonds and underweight index-linked
bonds, government bonds and absolute return strategies (including cash). The allocation is neutral
commodities, property and high yield bonds.
Governed Portfolio 5 (Drawdown)
We have reduced the exposure to absolute return strategies (including cash) (-1.50%) and increased the
exposure to equities (1.25%) and commodities (0.25%).
Overall the asset allocation is now overweight in equity and corporate bonds and underweight in
government bonds and absolute return strategies (including cash). The allocation is neutral property,
index-linked bonds, commodities and high yield bonds.
Governed Portfolio 6 (Drawdown)
We have reduced the exposure to absolute return strategies (including cash) (-1.25%) and increased the
exposure to equities (1.00%) and commodities (0.25%).
Overall the asset allocation is now overweight in equity and corporate bonds and underweight in
government bonds and absolute return strategies (including cash). The allocation is neutral property,
index-linked bonds, commodities and high yield bonds.
Governed Retirement Income Portfolio 3
We have reduced the exposure to 5 year government bonds (-1.00%) and increased the exposure to
equities (1.00%).
Overall the asset allocation remains overweight in equity, government bonds and high yield bonds and
This is for financial adviser use only and shouldn’t be relied upon by any other person.
15/09/2016
IAC Meeting 30/08/2016
11/08/2016
14/07/2016
underweight in corporate bonds and index-linked bonds. The allocation is neutral property.
Governed Portfolio 4
We have reduced the exposure to 5 year index-linked bonds (-0.75%) and 15 year index-linked bonds (0.75%) and increased the exposure to 15 year corporate bonds (0.75%) and absolute return strategies
(including cash) (0.75%)
Overall the asset allocation is now overweight in equity and underweight in commodities, government
bonds, index-linked bonds and absolute return strategies (including cash). The allocation is neutral
property, corporate bonds and high yield bonds.
Governed Portfolio 5 (Drawdown)
We have reduced the exposure to 15 year index-linked bonds (-0.56%) and 10 year index-linked bonds (0.19%) and increased the exposure to absolute return strategies (including cash) (0.75%).
Overall the asset allocation is now overweight in equity and corporate bonds and underweight in
commodities, government bonds, index-linked bonds and absolute return strategies (including cash).
The allocation is neutral property and high yield bonds.
Governed Portfolio 6 (Drawdown)
We have reduced the exposure to 15 year index-linked bonds (-1.13%) and 10 year index-linked bonds (0.12%) and absolute return strategies (including cash) (-0.25%) and increased the exposure to 5 year
government bonds (1.50%).
Overall the asset allocation is now overweight in equity and corporate bonds and underweight in
commodities, government bonds and absolute return strategies (including cash). The allocation is
neutral property, index-linked bonds and high yield bonds.
Governed Retirement Income Portfolio 3
We have considered the asset allocation of GRIP 3 and decided to make no change at this time. Overall
the asset allocation remains overweight in equity, government bonds and high yield bonds and
underweight in corporate bonds and index-linked bonds. The allocation is neutral property.
Each Governed Lifestyle Strategy continues to be appropriate for its risk profile and investment
objective.
Governed Portfolio 4
We have reduced the exposure to 5 year index-linked bonds (-1.50%) and increased the exposure to
equities (0.75%) and commodities (0.75%).
Overall the asset allocation is now overweight in equity and index-linked bonds and underweight in
commodities, corporate bonds, government bonds and absolute return strategies (including cash). The
allocation is neutral property.
Governed Portfolio 5 (Drawdown)
We have reduced the exposure to 10 year government bonds (-0.75%), 15 year index-linked bonds (0.56%) and 10 year index-linked bonds (-0.19%) and increased the exposure to equities (0.75%) and
commodities (0.75%).
Overall the asset allocation is now overweight in equity and corporate bonds and underweight in
commodities, government bonds, index-linked bonds and absolute return strategies (including cash).
The allocation is neutral property and high yield bonds.
Governed Portfolio 6 (Drawdown)
We have reduced the exposure to 5 year government bonds (-1.00%), 15 year index-linked bonds (0.12%) and 10 year index-linked bonds (-0.13%) and increased the exposure to equities (0.50%) and
commodities (0.75%).
Overall the asset allocation is now overweight in equity, corporate bonds and index-linked bonds and
underweight in commodities, government bonds and absolute return strategies (including cash). The
allocation is neutral property and high yield bonds.
Governed Retirement Income Portfolio 3
We have reduced the exposure to 10 year index-linked bonds (-1.00%) and increased the exposure to
equities (1.00%).
Overall the asset allocation is now overweight in equity, government bonds and high yield bonds and
underweight in corporate bonds and index-linked bonds. The allocation is neutral property.
Governed Portfolio 4
We have reduced the exposure to equities (-1.25%) and increased the exposure to 5 year index-linked
bonds (1.25%).
Overall the asset allocation is now overweight in equity and index-linked bonds and underweight in
commodities, corporate bonds, government bonds and absolute return strategies (including cash). The
allocation is neutral property.
Governed Portfolio 5 (Drawdown)
We have reduced the exposure to equities (-1.25%) and absolute return strategies (including cash) (2.00%) and increased the exposure to 10 year government bonds (0.75%), 15 year index-linked bonds
(1.87%) and 10 year index-linked bonds (0.63%).
Overall the asset allocation is now overweight in equity, corporate bonds and index-linked bonds and
underweight in commodities, government bonds and absolute return strategies (including cash). The
allocation is neutral property and high yield bonds.
Governed Portfolio 6 (Drawdown)
We have reduced the exposure to equities (-1.00%) and absolute return strategies (including cash) (2.00%) and increased the exposure to 5 year government bonds (3.00%).
Overall the asset allocation is now overweight in equity, corporate bonds and index-linked bonds and
underweight in commodities, government bonds and absolute return strategies (including cash). The
allocation is neutral property and high yield bonds.
Governed Retirement Income Portfolio 3
This is for financial adviser use only and shouldn’t be relied upon by any other person.
30/06/2016
30/06/2016
16/06/2016
IAC Meeting 14/06/2016
02/06/2016
We have reduced the exposure to equities (-1.00%) and removed our allocation to absolute return
strategies (including cash) (-1.47%) and increased the exposure to 5 year government bonds (1.47%) and
10 year corporate bonds (1.00%).
Overall the asset allocation is now overweight in equity, index-linked bonds and high yield bonds and
underweight in corporate bonds.
We have changed the strategic asset allocation of the Governed Portfolios. We’ve introduced the
following new asset types; absolute return strategies including cash, commodities, high yield bonds and
gilts.
Governed Portfolio 4
We have reduced the exposure to equities (-0.33%), 15 year index-linked bonds (-0.98%), 5 year indexlinked bonds (-1.00%) and absolute return strategies (including cash) (-1.94%) and increased the
exposure to 15 year government bonds (0.25%). We have also introduced a new allocation to
commodities (4.00%).
Overall the asset allocation is now overweight in equity and index-linked bonds and underweight in
commodities, corporate bonds, government bonds and absolute return strategies (including cash). The
allocation is neutral property.
Governed Portfolio 5 (Drawdown)
We have reduced the exposure to equity (-0.42%), 10 year corporate bonds (-0.44%), 15 year indexlinked bonds (-2.28%), 10 year index-linked bonds (-0.77%) and absolute return strategies (including
cash) (-0.34%) and increased exposure to 10 year government bonds (0.25%). We have also introduced
a new allocation to commodities (4.00%).
Overall the asset allocation is now overweight in equity, absolute return strategies (including cash) and
corporate bonds and underweight in government bonds, index-linked bonds and commodities. The
allocation is neutral property and high yield bonds.
Governed Portfolio 6 (Drawdown)
We have reduced the exposure to 5 year corporate bonds (-1.17%), 5 year government bonds (-0.07%),
15 year index-linked bonds (-7.19%), 5 year index-linked bonds (-4.59%) and absolute return strategies
(including cash) (-1.64%) and increased exposure to equity (2.08%), 10 year index-linked bonds (6.08%)
and property (2.50%). We have also introduced a new allocation to commodities (4.00%).
Overall the asset allocation is now overweight in equity, index-linked bonds, absolute return strategies
(including cash) and corporate bonds and underweight in government bonds and commodities. The
allocation is neutral property and high yield bonds.
Governed Retirement Income Portfolio 3
We have considered the asset allocation of GRIP 3 and decided to make no change at this time.
Overall the asset allocation is now overweight in equity, absolute return strategies (including cash) and
high yield bonds and underweight in corporate bonds and index-linked bonds.
Governed Portfolio 4
We have reduced the exposure to 15 year corporate bonds (-0.01%), global high yield bonds (-0.18%)
and absolute return strategies (including cash) (-1.31%) and increased exposure to equity (1.50%).
Overall the asset allocation is now overweight in equity, absolute return strategies (including cash) and
high yield bonds and underweight in corporate bonds and index-linked bonds.
Governed Portfolio 5 (Drawdown)
We have reduced the exposure to 10 year corporate bonds (-0.21%), global high yield bonds (-0.24%)
and absolute return strategies (including cash) (-1.55%) and increased exposure to equity (1.50%) and
short duration global high yield fund (0.50%).
Overall the asset allocation is now overweight in equity, government bonds, absolute return strategies
(including cash) and high yield bonds and underweight in corporate bonds and index-linked bonds.
Governed Portfolio 6 (Drawdown)
We have reduced the exposure to 5 year corporate bonds (-1.18%), global high yield bonds (-0.75%) and
short duration global high yield bonds (-0.83%) and increased exposure to equity (1.50%) and absolute
return strategies (including cash) (1.26%).
Overall the asset allocation is now overweight in equity, government bonds, absolute return strategies
(including cash) and high yield bonds and underweight in corporate bonds and index-linked bonds.
Governed Retirement Income Portfolio 3
We have reduced the exposure to absolute return strategies (including cash) (-1.00%) and increased
exposure to equity (1.00%).
Overall the asset allocation is now overweight in equity, absolute return strategies (including cash) and
high yield bonds and underweight in corporate bonds and index-linked bonds.
Each Governed Lifestyle Strategy continues to be appropriate for its risk profile and investment
objective.
Governed Portfolio 4
We have reduced the exposure to equity (-1.50%), 15 year corporate bonds (-0.03%), global high yield
bonds (-0.17%) and 15 year index-linked bonds (-0.98%) and increased exposure to absolute return
strategies (including cash) (0.43%), 15 year government bonds (0.25%) and 5 year index-linked bonds
(2.00%).
Overall the asset allocation is now overweight in equity, absolute return strategies (including cash) and
high yield bonds and underweight in corporate bonds and index-linked bonds.
Governed Portfolio 5 (Drawdown)
We have reduced the exposure to equity (-1.00%), 5 year government bonds (-1.05%), 10 year corporate
bonds (-1.95%), 15 year index-linked bonds (-1.36%), 10 year index-linked bonds (-0.45%) and global
high yield bonds (-0.24%) and increased exposure to absolute return strategies (including cash) (5.30%)
This is for financial adviser use only and shouldn’t be relied upon by any other person.
and 10 year government bonds (0.25%). We have also introduced a new holding in our short duration
global high yield fund (0.50%).
Overall the asset allocation is now overweight in equity, government bonds, absolute return strategies
(including cash) and high yield bonds and underweight in corporate bonds and index-linked bonds.
Governed Portfolio 6 (Drawdown)
We have reduced the exposure to equity (-0.25%), 5 year corporate bonds (-7.05%), global high yield
bonds (-0.75%) and short duration global high yield bonds (-0.82%) and increased exposure to absolute
return strategies (including cash) (4.64%), 5 year government bonds (2.43%), 15 year index-linked
bonds (1.48%) and 5 year index-linked bonds (0.32%).
Overall the asset allocation is now overweight in equity, government bonds, absolute return strategies
(including cash) and high yield bonds and underweight in corporate bonds and index-linked bonds.
Governed Retirement Income Portfolio 3
We have reduced the exposure to equity (-1.00%) and increased exposure to 10 year index-linked bonds
(0.50%) and absolute return strategies (including cash) (0.50%).
Overall the asset allocation is now overweight in equity, absolute return strategies (including cash) and
high yield bonds and underweight in corporate bonds and index-linked bonds.
The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct
Authority and the Prudential Regulation Authority. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street,
London, EC3V 0RL. Royal London Marketing Limited is authorised and regulated by the Financial Conduct Authority and introduces Royal
London’s customers to other insurance companies. The firm is on the Financial Services Register, registration number 302391. Registered in
England and Wales number 4414137. Registered office: 55 Gracechurch Street, London, EC3V 0RL. Royal London Corporate Pension Services
Limited is authorised and regulated by the Financial Conduct Authority and provides pension services. The firm is on the Financial Services
Register, registration number 460304. Registered in England and Wales number 5817049. Registered office: 55 Gracechurch Street, London, EC3V
0RL.
May 2017
5L1270/14