Statement of Investment Principals 30 September 2019[4] - Flipbook - Page 4
4 Setting the Strategy
Target Asset
Allocation
The Target Asset Allocation for the Scheme’s assets is as follows:
Asset Class
Investment
Managers
Target Asset Allocation
Global equities
50.0%
Multi-asset funds
50.0%
Total
100.0%
The Trustee entered into contracts with Legal & General Investment Management
Limited Ltd (LGIM) in May 2006 and Ruffer LLP (Ruffer) in June 2010. These companies
undertake day-to-day investment management of the Scheme’s assets.
The Investment Managers are authorised and regulated by the Financial Conduct
Authority (FCA) under the Financial Services and Markets Act 2000.
Funds Used
The Trustee uses the following funds operated by the Investment Managers, which are
given together with their Target Asset Allocation within the overall strategy.
Fund
Target Asset Allocation
Global equities
LGIM Global Equity Fixed Weights 50:50 Index Fund
50.0%
Risk-controlled multi-asset funds
Maintaining the
Target Asset
Allocation
LGIM Dynamic Diversified Fund
25.0%
Ruffer Absolute Return Fund
25.0%
The Trustee has responsibility for maintaining the overall balance of the asset allocation
relative to the Target Asset Allocation. The Trustee monitors the Target Asset Allocation
on a regular basis with the assistance of its investment adviser, BBS, and considers
switching assets between funds should the allocation move significantly away from the
Target Asset Allocation.
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