02/9/2010
By Kalpana Fitzpatrick
Cardano’s Solvency Management approach has collectively outperformed traditional investment approaches by 15 per cent over two years to 30 June 2010, according to the firm’s UK fiduciary management figures.
Clients following the solvency and risk management firm’s solvency management approach achieved the high returns by taking less than half the level of risk of a traditional approach, when compared to each pension scheme’s specific liability benchmark.
Although the two years saw a fall in equity markets, which impacted the value of pension fund liabilities due to falling interest rates, the solvency management portfolios outperformed a typical liability benchmark and rose significantly in value over the two years.
Ralph Frank, head of solutions for Cardano UK, commented: “Improving funding ratios is a long-term game, but our focus on strong performance with low levels of risk relative to liabilities is already delivering results for our clients. Ultimately fiduciary management will be assessed on results and we are delighted with what we have achieved so far.”
As at 30 June 2010, Cardano’s solvency management portfolios amounted to around £4bn.
The performance figures represent some of the earliest available for the UK fiduciary management industry.
