Managing the Club’s investments
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
Asset allocation
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.
Our policy right now
The Club’s investment policy remains cautious with a focus on preservation of capital. Holdings of equities were increased to take advantage of the opportunities for better returns available in the equity markets this year. There was a similar decrease in the Club’s holdings of bonds where government bond yields had reached record lows. So far this year, the Club has enjoyed a positive return on investments which, if maintained through to the year end, would provide an investment bonus to the Club’s balance sheet. In the volatile investment environment that currently exists though, there is of course no guarantee that it will be possible to maintain this investment performance through to the end of the year.
Reviewing performance and changing policy
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.
Thomas Miller Investment
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.