ED Group maintains a considerable allocation to an internally managed portfolio of highly liquid listed securities. The portfolio investment strategy is actively managed and unconstrained, evolving in risk profile as the prevailing economic environment and group liquidity requirements dictate.
Although technically unconstrained, the portfolio primarily comprises directly held government and investment grade corporate bonds, large-cap developed market equities and cash or cash equivalents. Third party funds may be used occasionally as required by niche strategies or exceptional circumstances.
The dual objectives of the portfolio are to generate meaningful contributions to 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.