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WTW offers global equity fund as low interest rates persist

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Willis Tower Watson has started its first Australian-domiciled global equity fund, aimed at wholesale investors including insurers.

With the low interest rate environment persisting, the company is also targeting super funds, charities, endowments, family offices and private wealth clients.

Senior Investment Consultant Stuart Gray says insurers are already holding equity in their investment portfolios and, like other investors globally, are searching for higher returns.

“Insurers historically have been able to do that through their fixed income investments but increasingly they are trying to find new ways of generating yield or generating return,” he told insuranceNEWS.com.au.

“Also, insurers are taking on different types of liability nowadays, as well, so maybe a bit more equity in the portfolio is appropriate.”

Willis Towers Watson says the fund, which had $150 million of seed funding ahead of today’s launch, brings together the favoured choices of multiple managers to drive returns and ensure exposure diversity.

The fund excludes investments related to tobacco and controversial weapons and takes into account environmental and sustainability issues.