Statement of Investment Principals 30 September 2019 - Flipbook - Page 3
3 Principles for Setting the Investment Strategy
The Trustee may select investments from a wide range of asset classes from time to
time, including, but not restricted to UK equities, overseas equities, government bonds,
corporate bonds, commercial property and alternative asset classes, such as hedge
funds, private equity and infrastructure.
The investments selected will generally be traded on regulated markets and, where this
is not the case, any such investments will be kept to a prudent level.
The Trustee may invest in products that use derivatives where this is for the purpose of
risk management or to improve the efficiency of the management of the Scheme’s
The Trustee may also hold insurance policies such as deferred or immediate annuities
which provide income to the Scheme, matching part or all of the future liabilities due
The Trustee may hold a working cash balance for the purpose of meeting benefit
payments due to members and the expenses of running the Scheme.
The Trustee will set a Target Asset Allocation from time to time, determined with the
intention of meeting its investment objectives.
The Target Asset Allocation will be set taking account of the nature of the Scheme’s
liabilities, the Trustee’s perception of the strength of the employer covenant and the
characteristics of different asset classes available. The Target Asset Allocation will be
reviewed periodically, in light of any changes to the above factors or relevant
regulations governing pension scheme investment.
The Trustee will delegate the day-to-day management of the Scheme’s assets to
professional investment managers and will not be involved in the buying or selling of
The Trustee makes disinvestments from the Investment Managers with the assistance
of its administrators, BBS, as necessary, to meet the Scheme’s cash-flow requirements.