Active DC solutions

In a market dominated by passive equity and fixed income offerings, Ninety One brings something different to the table, with a range of actively managed, sustainable Defined Contribution (DC) solutions. We believe the long-time horizon of DC scheme members is intrinsically linked with sustainability considerations, as the world moves towards carbon neutrality by 2050.
In a market dominated by passive equity and fixed income offerings, Ninety One brings something different to the table, with a range of actively managed, sustainable Defined Contribution (DC) solutions. We believe the long-time horizon of DC scheme members is intrinsically linked with sustainability considerations, as the world moves towards carbon neutrality by 2050.

An active approach

Building a retirement portfolio is, by definition, a very long-term endeavour. Over the past thirty years, we have developed a suite of active solutions to meet the needs of DC members at various stages of their savings journey. Our offerings are flexible, ranging from strategies that focus solely on alpha generation to those that focus on resilience and downside protection. We take an active approach to managing sustainability related risks at every stage of constructing these portfolios, focusing on investments that are well-positioned for the transition to a net-zero economy.

Sustainability at the heart of retirement

We believe the long-time horizon of DC scheme members is intrinsically linked with sustainability considerations. DC member portfolios must adapt to sustainability related risks and opportunities, which financial markets are highly likely to price during members’ savings journey. This is especially true for the youngest members, who have the longest savings journey ahead of them. Furthermore, our research suggests that three-quarters of investors believe that their money should be invested to make a positive difference, meaning alignment of member views on sustainability and their investment options has never been more important.

Over the coming decades, navigating sustainability risks and opportunities is likely to be a key differentiator of portfolio performance. Identifying companies that are well positioned for a sustainable energy transition, or otherwise, should reward active investors over time. This is a decision that passive investors are unable to reflect in their portfolios. Our South African heritage and deep expertise across emerging markets underpins our approach of investing where capital is needed most to achieve net zero. We firmly believe that crude approaches aimed at simply decarbonising portfolios will not help the world to transition and could prevent capital from flowing to where it is needed for this task.

Our solutions

At Ninety One, we provide access to a range of core building blocks for DC portfolios across the glide path. Our expertly managed, active solutions across equities, fixed income and multi-asset provide a tool-kit of accessible solutions via DC-friendly, daily dealt mutual funds. We provide DC schemes with the pieces of the jigsaw their members need for every phase - up to, through and during retirement.

Four stages

Across the four key phases of the glidepath - growth, consolidation, pre-retirement, and retirement - we believe actively managed, bottom-up, best ideas* strategies, which exhibit best-in-class sustainability characteristics, can deliver the most attractive outcomes for members.

Figure: Retirement journey

*‘Best Ideas’ represents our highest conviction ideas following fundamental analysis.

DC investment solutions​
Growth

In this phase, members can tolerate greater volatility in its pursuit of growth. We provide members access to active global and regional strategies, including those with dedicated sustainability and impact criteria.

  • Global Environment
    A high-conviction portfolio providing exposure to quality environmental solutions companies engaged in the powerful multi-year decarbonisation structural growth opportunity.

  • Global Sustainable Equity
    A high-conviction global portfolio seeking to invest in sustainability leaders with enduring competitive moats at attractive valuations.

  • Global Franchise
    A high-conviction global equity portfolio of best-of-breed quality companies that sustain high returns and compound shareholder wealth over the long term.

  • Emerging Markets Equity
    A core portfolio providing exposure to the growth opportunities of companies listed and/or operating in emerging markets.

  • Global Total Return Credit
    A dynamically managed, all-weather global credit portfolio that seeks to be defensive in downturns and to capture upside consistently through the market cycle.

  • Global Macro Allocation
    A dynamically managed multi-asset strategy aiming to compound high returns through time. The strategy aims to buy assets with macro tailwinds and avoid or short those with headwinds.

  • Global Multi-Asset Sustainable Growth
    A diverse, dynamic multi-asset portfolio with a focus on real returns, sustainability and impact.

Joshua Kriskinans

Sales Manager, UK Institutional

Tommy Canty

Sales Director - Head of Strategic Partners, UK Advisor

All investments carry the risk of capital loss and past performance does not predict future returns.

Important Information

This communication is provided for general information only should not be construed as advice.

All the information in is believed to be reliable but may be inaccurate or incomplete. The views are those of the contributor at the time of publication and do not necessary reflect those of Ninety One.

Any opinions stated are honestly held but are not guaranteed and should not be relied upon.

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