Woman in gym

Building a modern institutional portfolio

Tackle the challenges of being an institutional investor in 2021

Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.

Watch our video to discover how an index approach to portfolio construction could make it easier to manage your portfolio and rise to the challenge of being an institutional investor in today's world.

Pension funds and insurers play a critical role in securing the financial well-being of billions of people around the world. But it isn’t easy being an institutional investor today. Low interest rates, higher liabilities, regulatory demands – it all adds to the complexity. And yes – investors are doing a lot to deal with these challenges. But is it enough?

• I’m Kirst Kuipers, and I’ll explain how an index approach to portfolio construction may help you to increase returns, enhance risk diversification, lower costs, to improve liquidity, enhance sustainability…. and to make it easier to manage your portfolio.

• Low interest rates have increased the value of liabilities while returns on fixed income in matching portfolios have gone down
• In addition, higher life expectancy has also increased liabilities even further
• Meanwhile, regulatory emphasis on transparency and efficiency is accelerating the need to reduce costs
• Last but not least, sustainability has become the standard across Europe with investment behaviour increasingly being scrutinised by regulators, clients and the general public at large

• ETFs are a great tool to help tackle these challenges. They are liquid and transparent and offer easy and diversified access to a wide range of different asset classes
• And you can implement them in a barbell strategy
• In this approach you build the core of your portfolio with low cost index products

• You can then add private investments or alternatives for convictions that could offer additional returns, but are harder to access, less liquid, or may not offer an index product to capture their potential upside
• This approach could increase the overall return of your portfolio, while making it easier to manage.

• Market turmoil during the covid crisis has highlighted the need for liquidity and shown the resilience of ETFs in volatile markets
• Not surprisingly, more and more institutional investors are using ETFs in their portfolios
• If you would like to know more on this, please give us a call

Pension funds and insurers play a critical role in securing the financial well-being of billions of people around the world. But it isn’t easy being an institutional investor today. Low interest rates, higher liabilities, regulatory demands – it all adds to the complexity. And yes – investors are doing a lot to deal with these challenges. But is it enough?

• I’m Kirst Kuipers, and I’ll explain how an index approach to portfolio construction may help you to increase returns, enhance risk diversification, lower costs, to improve liquidity, enhance sustainability…. and to make it easier to manage your portfolio.

• Low interest rates have increased the value of liabilities while returns on fixed income in matching portfolios have gone down
• In addition, higher life expectancy has also increased liabilities even further
• Meanwhile, regulatory emphasis on transparency and efficiency is accelerating the need to reduce costs
• Last but not least, sustainability has become the standard across Europe with investment behaviour increasingly being scrutinised by regulators, clients and the general public at large

• ETFs are a great tool to help tackle these challenges. They are liquid and transparent and offer easy and diversified access to a wide range of different asset classes
• And you can implement them in a barbell strategy
• In this approach you build the core of your portfolio with low cost index products

• You can then add private investments or alternatives for convictions that could offer additional returns, but are harder to access, less liquid, or may not offer an index product to capture their potential upside
• This approach could increase the overall return of your portfolio, while making it easier to manage.

• Market turmoil during the covid crisis has highlighted the need for liquidity and shown the resilience of ETFs in volatile markets
• Not surprisingly, more and more institutional investors are using ETFs in their portfolios
• If you would like to know more on this, please give us a call