Statement of Investment Principals 30 September 2019[4] - Flipbook - Page 5
Performance
Benchmark and
Objective
The LGIM global equity fund is an index-tracking vehicle, meaning that its objective is to
track the total return from a specified market within an agreed margin. The benchmark
and agreed tracking margin below:
Fund name
Benchmark
Tracking Margin
LGIM Global Equity Fixed
Weights 50:50 Index Fund
50% FTSE All Share index : 50% subsections
of FTSE All World overseas index,
maintained as 17.5% Europe (ex-UK):
17.5% North America: 8.75% Japan and
6.25% Asia Pacific (ex-Japan).
±0.39% p.a.
(gross of fees)
The LGIM and Ruffer risk-controlled multi-asset funds are actively managed, with
objectives to generate a return well in excess of that on cash, whilst managing volatility
in returns. This is summarised below:
Investment
Management
Charges
Fund name
Benchmark
Performance target
LGIM Dynamic Diversified
Fund
Bank of England Base Rate
To outperform the benchmark by
4.5% p.a. (gross of fees) over
rolling three-year periods
Ruffer Absolute Return
Fund
Cash, e.g. 3-month LIBOR
To generate a return of at least
twice the benchmark return (net
of fees) whilst preserving capital
over rolling twelve month periods
The annual management charges for each of the funds used, based on the assets under
management at the date of this Statement, are given below:
Fund
Annual Management Charge
LGIM Global Equity Fixed Weights
50:50 Index Fund
0.165% p.a. on the first £2.5 million under management
0.155% p.a. on the next £7.5 million under management
LGIM Dynamic Diversified Fund
0.38% p.a.*
Ruffer Absolute Return Fund
1.20% p.a.
*Discounted from 0.50% p.a. until further notice
In addition, LGIM make a flat charge of £1,500 per annum to cover administration
services.
Employer Related
Investment
Neither the Trustee nor the Investment Managers directly hold any employer related
investments.
Additional
Voluntary
Contributions
(AVCs)
The Scheme does not hold any assets in respect of AVCs.
5