investment policy

In formulating its investment policy and distributing its portfolio over the various asset managers PH&C observes the following principles:

• diversification of assets over a range of asset classes, asset managers, and investment styles;

• the best asset manager per investment mandate;

• active management in markets where that may generate added value, otherwise passive management.
  
  Strategic investment policy
  The Fund observes the following strategic portfolio weighting over the various asset classes: 50% equities, 40% fixed income securities and 10% property.
  
   

Tactical investment policy
Tactical investment policy is delegated to professional institutional asset managers. With their market vision and specific expertise in their field they can be expected to achieve better returns relative to previously agreed benchmarks. They allocate on a regional, country and sector basis, selecting specific investment opportunities within these. Tactical policy implementation is obviously subject to risk exposure limits determined and supervised by Fund management.

Asset managers
Tactical asset management at PH&C is based on a multi-manager structure. In its early days the Fund delegated its asset management entirely to one sole firm. Other asset managers were appointed from 2001 onwards. PH&C currently uses the services of 12 asset managers. This multi-manager approach has so far produced a good performance record.

Benchmark
PH&C assesses the performance of its overall portfolio and returns per asset class against relevant benchmarks (or “norm” performances). Benchmarks provide an objective criterion for the composition and performance of invested assets.