ED Group maintains a substantial allocation to an internally managed portfolio of highly liquid listed securities. The portfolio’s investment strategy is actively managed and unconstrained, evolving in risk profile as prevailing economic conditions and ED Group liquidity requirements dictate.
The portfolio primarily comprises directly held government and investment grade corporate bonds, large-cap developed market equities and cash or cash equivalents. External fund managers are used occasionally to compliment core strategies. The dual objectives of the portfolio are to generate meaningful contributions to ED Group performance during periods of economic expansion whilst preserving capital and providing a counterbalance and liquidity to ED Group’s other businesses in more difficult conditions.