About Your Scheme

Investment Strategy

The Trustees are responsible for setting the Scheme’s policy for allocating the assets among various types of investments and among investment managers. They do this after each actuarial valuation and advice is taken from the Scheme’s investment consultant and a strategy panel appointed by the Trustees. The Guarantor is then consulted on the strategy and his comments are considered by the Trustees.

Typically, a scheme with no contributing members and which paid pensions linked to inflation would hold a very high proportion of the assets in index linked securities issued by the UK government. The existence of the Guarantee, however, enables The Trustees to pursue a more varied investment strategy, with a significant proportion of the Scheme’s assets remaining invested in equities. Over time, these are expected to produce higher returns but the returns can vary significantly from year to year.

Details of the actual asset allocation are published each year in the Scheme’s Annual Report and Accounts.