We have a dynamic investment strategy designed to produce a return of 1.80% per year over and above what we estimate we’ll need to cover claims on the fund and pay our members’ pension benefits.

This investment strategy is governed by our Statement of Investment Principles.

How we allocate our assets

Our strategic asset allocations are set by the Board and carefully monitored to make sure they remain fit for purpose.

Our asset allocation is different from the allocations of average defined benefit pension schemes in the UK. This is because we need to be solvent at times when general pension schemes are significantly underfunded. We need a low risk strategy that aims to be relatively uncorrelated to the funding levels of the schemes we protect.

We operate within a tight risk framework, driven by our need to remain solvent at all times.

For more details, view our asset allocation chart.