Statement of Investment Principals 30 September 2019[4] - Flipbook - Page 2
2 Investment Objectives
Strength of
Employer Covenant
In determining its investment objectives and strategy, the Trustee has made the
assessment that the Principal Employer’s willingness and ability to finance the Scheme
permits a long-term view to be taken.
Key Funding
Measure
The Scheme is subject to the Statutory Funding Objective (SFO) introduced by the
Pensions Act 2004, i.e. that it should have sufficient and appropriate assets to cover its
Technical Provisions, as calculated in accordance with the Trustee’s Statement of
Funding Principles.
In determining its investment objectives and strategy, the Trustee has agreed that the
funding position measured under the SFO is the assessment of scheme funding that is
of most importance to the Trustee, the Principal Employer and members, as it
determines the Scheme’s funding requirements and members’ long-term benefit
security.
Investment
Objectives
Paying Regard to the
Principal Employer’s
Views
The Trustee’s investment objectives are as follows:
To ensure that the assets are of a nature to enable the Trustee to meet the
Scheme’s benefits as they fall due;
To invest the Scheme’s assets in an appropriately diverse and liquid range of
investments;
To invest in a way that is consistent with the Scheme’s funding objectives, i.e. to
invest so that the investment return assumptions used to determine the Trustee’s
funding plan have a reasonable chance of being achieved in practice;
Where future opportunities arise to increase protection against liability-related
risks in such a way that does not invalidate the funding plan, the Trustee will
consider steps to reduce the volatility of the Scheme’s funding position relative to
its liabilities calculated under the SFO.
The Trustee will have regard to the Principal Employer’s views on the potential costs
and risks associated with the investment objectives set and their implementation
through the practical strategy.
2