Triple C Plan: Investment Strategy

Handelsbanken Asset Management manage Nordben’s 7 Triple C policyholder funds.

The Triple C policyholder funds currently invest in long-term fixed interest bonds, equities and hedge funds. Nordben aims to invest an appropriate percentage of its assets in fixed interest bonds so that it can broadly secure the guarantees underlying the Plan.

Having prioritised covering these guarantees, the remaining funds are then invested to secure the best return for policyholders within an acceptable level of risk.  Nordben currently invests the funds in a mixture of equities and hedge funds.  The proportion of equity and hedge fund investments is determined with the aim of maximising returns relative to risk (due to the relatively low volatility and correlation over time of hedge funds compared to equities).  A prudent approach to investing in hedge funds has been taken by limiting the proportion invested in such funds to date.

The bonus is determined having regard to price inflation for the period September to September in the relevant currency with the aim of providing an overall return of 2% above inflation.  This is a target and not a guarantee, the bonus could be higher or lower than the target. The bonus target may change over time.