Investment management arrangements
The fund pursues a policy of managing risk by diversifying both investments and investment managers. Assets are held by the fund in order to achieve returns consistent with the cost of future pension liabilities as assessed by the actuary. Actuarial valuations are undertaken every three years with the next one due in March 2022, the results of which will be communicated to employers in November 2022 and new contribution rates will be set for the next three financial years commencing 1 April 2023.
The strategic Asset allocation for 2021/22 was as follows:
|
Asset |
% of Fund |
|
Targeted Return Funds (E.G. Absolute Return Bonds, Hedge Funds, Insurance Linked Securities) |
25 |
|
Equities |
50 |
|
Property Debt |
3.5 |
|
Private Debt |
4 |
|
Indirect Property |
5 |
|
Private Equity |
6.25 |
|
Infrastructure |
6.25 |
The fund uses a mixture of active and passive investment managers within its portfolio.