What is the Statement of Investment Principles?

The Statement of Investment Principles (SIP) is a legally-required document, produced by the Trustee. It sets out the principles the Trustee follows in order to provide a suitable range of investment funds for the Plan’s members.

Members of the Defined Benefit Section rely on the Trustee to manage the investment of the assets that will provide benefits for them. Members of the Defined Contribution Section rely on the Trustee to offer a suitable default investment strategy and range of funds should they wish to choose to select their own investments.

What are the Trustee’s responsibilities?

The Trustee chooses and monitors the investments held within both the DB and DC Sections of the Plan. It is the Trustee’s responsibility to ensure the Plan’s funds are well managed, offer appropriate levels of risk, and are good value.

There are two dedicated committees (smaller groups of Trustee directors supported by advisers) who meet regularly to review the performance of the investments, consider members’ feedback, consult with the sponsor (the Company) and make adjustments to the investments if necessary to ensure they follow the principles set out in the SIP.

The Trustee regularly reviews its own performance to ensure it is following the principles set out in the Statement and each year it reviews the principles to ensure they remain fit for purpose.

What’s new for 2020?

The Trustee has been considering how investment funds’ performance can be influenced by a number of factors such as Environmental, Social and Governance (ESG) issues, including climate change. This year, they replaced a number of the DC Section Freestyle funds and underlying Lifestyle strategy funds with new funds that take account of the approach that companies take to ESG issues.

Please click the buttons below to download the Statement of Investment Principles.