TPT's Investment Beliefs are as below:
1) Assets are held to pay benefits and should be invested taking account of the characteristics of these benefits
2) Risk should only be tolerated to the extent that the Trustee has confidence that the covenant of sponsoring employer(s) is sufficient to meet potential adverse consequences.
3) Asset allocation is a more important determinant of returns than manager or stock selection.
4) The potential to achieve a higher investment return requires taking higher risk (uncertainty in future returns).
5) Diversification of risk assets, both within and accross asset classes, reduces the variability of returns, both in absolute terms and relative to liabilities.
6) The real world is complex; judgement and qualitative research are important alongside quantitative analysis.
7) Illiquid assets, that provide sufficient reward to compensate for illiquidity, may be suitable investments. Sufficient liquidity to meet payments, including in stress scenarios, should be maintained.
8) Market opportunities to deliver returns in excess of an index may exist.
9) Good governance improves the quality of investment decision-making. Transparency is an important enabler for good governance.
10) Responsible investment helps identify and mitigate risks. Responsible investment may also enhance portfolio returns.