Learn more about our "best ideas" portfolio.
In this video, Tom Hepworth, Portfolio Manager, gives an overview of our Towers Watson Partners Fund. The Partners Fund is our ‘best ideas’ portfolio, established nearly 20 years ago to improve the endowment funds of several Colleges of the University of Oxford. By pooling capital, these institutions could benefit significantly from a more diversified and robust investment strategy, often referred to as ‘endowment style’ investing, an approach favored by prestigious universities like Yale and Harvard.
The benefits of the Partners Fund are notable. Economies of scale give us scope to negotiate fees with external managers, generating significant fee savings for our investors. A broad opportunity set, enabled by our unconstrained approach, means we can invest across all asset classes, beyond traditional equities and bonds. We capitalize on ideas across the entire investment spectrum, including equities, credit and hedge funds, with a strong focus on private markets. These ideas are implemented via external, specialist investment managers, recognizing that specialist strategies require specialist skills. This broader set of levers can lead to smoother returns, especially during periods when both equities and bonds decline together. Private markets, which have historically provided returns comfortably over equities, are a key part of our portfolio and are expected to be a driving force.
We target an ‘equity-like’ return of 5% above inflation over the long-term, but with much lower risk than equities. Genuine portfolio diversification is central to the Partners Fund, serving as the first line of defense in managing risk. We manage a wide range of risks, from traditional investment risks to sustainability-related risks, with a particular emphasis on downside risk to preserve capital in times of stress. Our long and proven record of managing these risks shows that we’re committed to delivering stable, long-term returns while effectively managing risk.
If you’re an investor with long-term investment goals and want a lower volatility alternative, our Partners Fund could be the right solution for your organization.
TOM HEPWORTH: Hi. My name is Tom Hepworth. I'm a Portfolio Manager for the Towers Watson Partners Fund, and I'm delighted to have the opportunity to talk to you today about the fund.
What is the Towers Watson Partners Fund?
The Partners Fund is our best ideas portfolio. It was established almost 20 years ago to help improve the endowment funds of a number of Colleges of the University of Oxford, and to help them obtain the benefits associated with pooling capital, which we would argue can be significant. Often referred to as endowment style investing, an approach favored by universities such as Yale and Harvard, the fund aims to generate stable long term returns above inflation whilst carefully managing risk.
Towers Watson Investment Management Limited (“TWIM”) of 51 Lime Street, London, EC3M 7DQ, is authorised and regulated in the United Kingdom by the Financial Conduct Authority (FCA Register Firm Reference Number 446740, refer to the FCA register for further details) and incorporated in England and Wales with Company Number 05534464.
Carne Global Fund Managers (Ireland) Limited (“Carne”) is the management company to the WTW Irish range of actively managed funds and has appointed TWIM as the investment manager to these funds. Carne was incorporated on 10 November 2003 under registration number 377914 and its registered office is at 55 Charlemont Place, Dublin 2, D02F985, Ireland. Carne is authorised and regulated by the Central Bank of Ireland.
This material is based on information available to WTW at the date of this material or other date indicated and takes no account of developments after that date. In preparing this material we have relied upon data supplied to us or our affiliates by third parties. Whilst reasonable care has been taken to gauge the reliability of this data, we provide no guarantee as to the accuracy or completeness of this data and WTW and its affiliates and their respective directors, officers and employees accept no responsibility and will not be liable for any errors, omissions or misrepresentations by any third party in respect of such data.
This material may not be reproduced or distributed to any other party, whether in whole or in part, without WTW's prior written permission, except as may be required by law. In the absence of our express written agreement to the contrary, WTW and its affiliates and their respective directors, officers and employees accept no responsibility and will not be liable.
This material is intended for investors with long-term investment time horizons. The value of all investments and the income from them can go down as well as up. This means you could get back less than you invested. Past performance does not predict future returns.
Please read the important regulatory disclosures and risk warnings relating to the Towers Watson Partners Fund, featured in this video. You should read this section carefully as it is intended to protect information and protect you.
