The Trustees’ key investment objectives are:
i) To meet benefit payment as they fall due; and
ii) The Scheme’s funding position should remain at an appropriate level.
The Trustees undertook a review of their investment strategy in 2012 and agreed that the Scheme’s investment strategy should be based on the benchmark allocation below:
UK Equities 15%
Overseas Equities 15%
UK small cap equities 15%
Multi asset absolute return 20%
Index-linked bonds 20%
Corporate bonds 10%
The Trustees believe that companies that display good environmental and social practices will be recognised as being well managed and should outperform the market over the long-term. Trustees believe that engaging with companies, including exercising voting rights, offers an effective means of promoting Trustees’ beliefs.
The Trustees have appointed Standard Life, Legal & General and Pyrford to manage equity assets for the Scheme on a segregated basis. All 3 managers are signatories to the PRI with Standard Life and Legal & General having proven track records and well-structured processes that include analysis of companies’ environmental, social and governance performance.
Trustees believe that engaging with companies, including exercising voting rights, offers a more effective means of promoting their beliefs than a negative screening policy.