All AP7's products are based on our basic conditions for investment and risk management. Here is our investment philosophy:
- Fixed income investments can result in a low pension.
- Pension plans should be seen over a 40-60 year time frame.
- Risk should be reduced as the investor approaches retirement age – the date when the individual needs access to the funds.
- Risk diversification has an intrinsic value, making a global equity portfolio the best solution.
- Active management should be measured in money terms, not relative to an index.
- It is important to set premium pension risk at a level where the premium pension and income pension together offer a prudent level of risk.
Risk for different types of mutual fund
Standard deviation 3 years (Morningstar, April 2010)
Standard deviation is the volatility of the fund. The higher the volatility, the higher the risk.
