Insight Investment’s Post

How much could a DB scheme safely release from its surplus? The first step is to work out a cashflow-based understanding of scheme's assets. So, a scheme should ask if it can buy enough gilts and high-quality corporate bonds with cashflows that would more than cover benefits, even under very stressed market scenarios. Learn more here: https://bit.ly/4bACB0d Capital at risk. For professional investors only.

DB schemes investing their surplus could take two approaches, we believe. One is extracting an annual sum from high-grade fixed income assets with cashflows that could more than cover benefits, even under very stressed market scenarios. Or, by making a small allocation to growth assets such as equities, schemes could target a higher surplus, but with a surplus payout less certain. Read more here: https://bit.ly/4bACB0d Capital at risk. For professional investors only.

An equity multiple is a tool used to measure the profitability/return on an investment. Do you know how it's calculated? Read our blog to find out! 👇 https://lnkd.in/eZdpnheb #EquityMultiple #KPIs

Well-structured borrowing arrangements are increasingly driving returns. In fact, research conducted by Dechert and the Alternative Credit Council reveals that 66% of private credit manager respondents are using leverage within their investment strategy. Read more about this growing trend.

Dollar-Cost Averaging (DCA) is an investment strategy that involves investing the same amount of money in a target security at regular intervals, regardless of price. This strategy can lower the average cost per share and reduce the impact of volatility on the portfolio. In summary, the investor or fund manager decides on a fixed amount to invest at regular intervals, and invests this fixed amount regardless of the price of the security. When prices are high, the fixed amount buys fewer shares, and when prices are low, it buy more shares. Over time, this is supposed to result in a lower average cost per share compared to making a lump sum investment at a single price point.  This strategy is useful in volatile markets, because it mitigates the risk of investing a large amount in a single investment at the wrong time.   However, this investment strategy does not guarantee profit or protect against loss in declining markets, such as what we have had recently.  DCA works best in volatile markets where the price of the investment fluctuates.  In steadily rising markets, DCA may result in a higher average cost per share.   DCA could cause the investor to miss out on certain investment opportunities.   If the market is on an upward trend, investing a lump sum could potentially yield higher returns compared to DCA. Another issues is that the investor or fund manager is holding on to money longer, which leads to currency exposure and is a cost. The consequence is lower returns than lump sum investing, especially over longer periods of time. DCA requires consistent investing, even during market downturns.  It can be challenging to maintain this discipline, especially during periods of market volatility. As the investor is investing a fixed amount, if the share price rises, they will buy fewer shares than if they bought lump sum. Terence Nunis Terence K. J. Nunis, Consultant Chief Executive Officer, Equinox GEMTZ

A recent survey by Mercer and CAIS found that 98% of surveyed financial advisors are already investing in private debt, and 68% planned to increase allocations to private credit in the next year. This article by Elaine Misonzhnik for WealthManagement.com looks at the increased demand for private credit investments. https://loom.ly/IIQEt8o If you’re ready to dive into the worlds of private credit and private equity, Securitize has you covered. https://loom.ly/i33p5-s

How much cash should you hold in your investment portfolio? Find out how much investors really need and why excess cash can prove costly. Read more: https://vgi.vg/3UwWYER Capital at risk.

Do you know the role cash should play in your portfolio? Before you consider it as an investment, learn how cash fits into your long-term strategy.

Do you know the role cash should play in your portfolio? Before you consider it as an investment, learn how cash fits into your long-term strategy.

Do you know the role cash should play in your portfolio? Before you consider it as an investment, learn how cash fits into your long-term strategy.