Chair's Annual Statement 2021
This is the chair of the Trustee Board’s annual governance statement for members, which includes the following key information. The Statement is included in the Annual Report and Accounts below.
Review of the Funds in which your money is invested
- A description of any review of the Funds in the last Scheme year and any resulting changes.
- If there was no review in the year, the statement indicates the date of the last review.
Pension Account Charges and Transaction Costs
- The level(s) of charges and transaction costs paid by members for all the Funds that members are able to select.
- A statement on any unavailable transaction costs and steps being taken to obtain that information in future.
- An illustration of the compounding effect of costs and charges on the value of benefits.
Value for Members
- The explanation of the Trustees’ assessment of why the scheme represents good value for members.
Statement of Investment Principles 2020
The Trustees’ investment objectives and the principles that the Trustees apply when making decisions about investments.
This is the most recent Statement of Investment Principles (SIP) for the Lifestyling Funds, which make up the default arrangement for members to invest in.
The Implementation Statement below sets out how the principles in the SIP were followed and how the SIP has been kept under review during the year by the Trustees.
Annual Review of the SIP (2021)
As referred to in the Implementation Statement above, the principles in the SIP were reviewed by the Trustees in September 2021 as part of the Trustees' annual review of the DC Section investment strategy and performance against the Trustees’ investment targets. No changes were made to the underlying principles in the SIP as a result of the review.
However, the review identified that changes to the underlying allocation of funds that made up Mixed Investment Funds A, B and C were necessary. See below for the Investment Newsletter that details these changes.
Investment Newsletter 2022
The September 2021 review of the Statement of Investment Principles identified that changes to the underlying allocation of funds that made up Mixed Investment Funds A, B and C were necessary.
Your Trustees also decided to better reflect the likely impact of environmental, social and governance issues (ESG) within the assets that make up the Mixed Investment Funds A, B and C.
The February 2022 newsletter shows these changes in detail, including the revised allocations.
Annual Report and Accounts 2021
The comprehensive report on the Scheme's activities and financial performance throughout the year.
It includes the Chairs Annual Statement and the Statement of Investment Principles, although the versions of these documents above may actually be newer.
LGIM Environmental, Social and Governance Report 2022 Quarter 1
Environmental, Social, and Corporate Governance (ESG) refers to the three central factors in measuring the sustainability and impact of investment in a business.
The intention of this measurement is to better determine the future financial performance of such organisations and so better determine return and risk.
It includes such considerations as:
- climate change,
- labour standards,
- supply chain sustainability,
- board diversity,
- director independence,
- executive pay,
- audit standards.
ESG is not concerned with purely ethical or moral investment policies if such policies have no financially material impact.
The Trustees incorporate all financially material considerations into decisions on the selection of investments and the appointment of investment managers, so far as possible. This includes ESG factors.
As part of their ESG monitoring the Trustees receive the following quarterly publication from the investment managers, LGIM.