Our investment management covers:

• designing the investment policy
• assessing investment risk
• maximising returns for a given level of risk, all against the backdrop of the Club’s insurance risks

We manage the portfolio of assets within the limits of the Club’s investment policy. The investment portfolio is invested in:

• fixed income (cash, government securities and corporate bonds)
• equities
• absolute return funds (ARF)

For each class of asset, the investment policy specifies minimum and maximum percentage holdings within the investment portfolio.

The Club has reduced risk by reducing its holdings in equities and ARF, at a time when equity markets are showing substantial volatility. The Club has shifted its fixed income holdings towards short term treasuries to reduce counterparty risk, given the concerns over interbank lending owing to the euro zone crisis.

The Club’s investment policy can only be altered at Board meetings or, in the rare case of an emergency requiring a change between meetings, by the Chairman and a Deputy Chairman. Any emergency changes must be reported to the Board as soon as practicable. Our overall investment policy is reviewed on a three-yearly basis.

At each Club Board meeting, the directors receive a report from the investment managers. The directors also receive an annual report on the investment performance of the other 12 clubs in the International Group for purposes of comparison.

The Investment Division of the Thomas Miller Group was established over 30 years ago and has been managing the UK Club’s funds since then and now has $4.3 billion of funds under management. Thomas Miller Investment (Isle of Man) Limited is one of the largest asset managers on the Isle of Man and is regulated by the Financial Supervision Commission.