Alex Lindenberg Managing Director, Investment Consulting
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10-second summary
Just as an efficient engine is key to performance on the road, a sound investment strategy is crucial to delivering good member outcomes. We’ve developed a tried and tested process to help us collaborate with our clients to design investment strategies that are robust, practical and aligned with their goals and objectives.
How do we approach investment strategy at Redington?
A good strategy is fundamental to good investment outcomes. Selecting the best managers and negotiating the lowest fees won’t matter if you have a poorly designed strategy that isn’t aligned with your objectives.
Our Investment Strategy Committee – formed of experts from across our business – has designed a set of model portfolios – the portfolios we’d recommend if we had a blank canvas. This ensures all clients have access to our best ideas and helps to avoid ‘flavour-of-the-month’ consulting.
Our model portfolios are intended to be long-term investment strategies. We don’t try to call the market, but instead aim to build portfolios that are robust across a range of scenarios. This means being diversified across asset classes, managers and underlying risk premia.
Pitstop 4: Investment Strategy Building an efficient engine
Beginning with the end in mind is central to our advice, so we ensure that all strategic recommendations are aligned with our clients’ key objectives and constraints – this is our ‘client filter’.
We’re pragmatic, and recognise there’s no point presenting a portfolio that’s far too complex, governance-heavy or costly to implement. Instead, we’ll work with your existing portfolio to find quick wins that’ll improve alignment with your objectives, enhance efficiency and reduce unnecessary cost and complexity.
While our strategic recommendations are intended to be suitable over the long term, they’re not ‘set and forget’. Just like an annual MOT, it’s important that clients regularly review their portfolios to ensure they remain fit for purpose as market conditions and funding levels change. Although we don’t attempt to call markets, nor respond with a knee-jerk reaction to events, we do help our clients take advantage of strategic opportunities and calls to action as they arise – so long as they’re aligned with their ultimate objectives.
How does this benefit our clients?
Redington’s laser-like focus on objectives helps our clients feel in control during turbulent market conditions, avoiding impulsive reactions that could have detrimental impacts over the long term.
Our clients understand the strategic context for the investments they make and can therefore spend their valuable governance time on the decisions that make a real difference to member outcomes.