Punch Articles

Apr 19, 2012 - Glacier's P² (Personal Preservation) Strategies have been specifically designed to help intermediaries when advising more risk-averse ...
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Punch Articles The article below was published in Punch during April 2012. 19 April 2012 - Better yields for risk-averse investors Glacier's P² (Personal Preservation) Strategies have been specifically designed to help intermediaries when advising more risk-averse investors. These strategies allow investors to invest more in growth assets, without the full-blown risk associated with these assets. The importance of investing in growth assets to ensure long-term capital growth cannot be over-emphasised. Often, however, investors are reluctant to do so, due to the extreme volatility of the assets. Glacier's P² Strategies, which have been available from 10 April 2012, is a rather unique dynamic asset allocation strategy which enables clients, but particularly risk-averse clients, to invest more for growth whilst limiting the impact of market downturns on their investments. An exceptional feature of these strategies is that every investor's preservation strategy is personalised - similar to each investor having his/her own personal investment guardian. An investment in growth assets is combined with one in money market funds. Each client's investment is dynamically rebalanced in line with market movements: when markets are falling, the investment is cushioned against the fall by moving a greater portion of the investment into the money market funds, and when markets are rising, a greater portion is assigned to the growth assets (e.g. equity funds), to allow the investor to gain from the upswing. There are four different levels of preservation from which an investor may choose: Investors who are willing to take on more risk can choose a smaller level of downside cushioning, whereas a greater level of cushioning is available for the more risk-averse investor. The Glacier P² Strategies balance growth with safety, and are specifically aimed at investors who seek longterm capital growth without the shock waves. The Glacier P² Strategies is an investment strategy managed by Glacier under advice from Milliman, one of the world's largest risk management firms, whose risk-management strategies have been successfully implemented for over a decade, and through two market crises. The Glacier P² Strategies can be accessed through Glacier's Retirement Annuity, Preservation Funds, Investment-linked Living Annuity and Retirement Fund Investment Solutions. This month's Tempo contains more detail about this exciting new offering. Technical guides and one-pagers are available from your Glacier representative. Should you have any enquiries, please contact the Glacier Communication Centre on (021) 917 9002 or 0860 GLA ENG.