Strategies

MAP offers the following Investment Strategy Fund options:

  • Defensive Strategy: designed to provide a high probability that the return on your fund will be at least equal to the inflation over time plus a small margin in order to reduce as far as possible the risk to you. This would usually be suitable for people with shorter term horizons or those who do not want to have annual fluctuations in their balances.
  • Moderate Strategy: designed to provide a higher long term return in a balanced way aiming to provide moderate fluctuation in values but offer good growth potential. They are usually suitable for people with medium to long term investment horizons.
  • Growth Strategy: designed to provide higher long term return but minimise the probability of losing nominal value of assets in the long term.

You choose your investment risk profile

Primary and Strategic Objectives
Primary investment objective
To invest prudently so that the reasonable expectations of members can be met at the level of risk chosen by the member. The objectives set relate to the real value of the members benefits and thus risk and return objectives are linked to inflation.
Strategic objectives Investment Strategy Fund Options
Defensive Moderate Growth
Time Horizon 10 years
Risk Objective: annualized 10-year return (5% level) CPI[1] - 1.2% pa CPI[1] - 1.4% pa CPI[1] - 1.7% pa
Return Objective: annualized 10-year return (average) Maximize expected return subject to the above risk objectives
1European Consumer Price Index: annualized 10-year expected CPI = 1.8% pa
Permissible Asset Allocation Ranges

The permissible asset allocation ranges for each Investment Strategy Fund option to the different strategic asset classes are shown below. The detailed investment strategy of the Aon Hewitt Multi Employer Provident Fund is set out in detail in the latest Statement of Investment Principles (SIP).

Strategic Asset Classes Investment Strategy Fund Options
Defensive Moderate Growth
Global Equity 0 - 25% 15 - 35% 25 - 45%
Hedge Funds 0 - 15% 0 - 15% 0 - 15%
Global Bonds 10 - 30% 20 - 40% 20 - 40%
Cash & Loans to members 30 - 90% 10 - 65% 0 - 55%
Total 100% 100% 100%

Important note:
The strategic asset allocations for each Option are reviewed on a quarterly basis and are subject to the above permissible ranges. The current strategic asset allocations for each Option are disclosed below.

Current Strategic Allocations and Parameters
From 1 November 2015 Investment Strategy Fund Options

Strategic Asset Classes

Global Equity
Hedge Funds
Global Bonds
Cash & Loans to members
Defensive Moderate Growth