Our Investment Strategy Statement (ISS) has now been published after the stakeholder consultation process has been completed.
The ISS is a technical document that is produced to comply with LGPS regulations and guidance. It sets out how the Fund will achieve its primary strategic objective of paying the pensions due over time. This entails balancing the risk within the portfolio between generating returns and protecting capital and recognising our role as a responsible investor and the contribution we can make in addressing environmental, social and governance related issues while ensuring affordability for our employers.
We acknowledge it is difficult to achieve all the differing aspirations and objectives of our stakeholders; our strategy includes those that are aligned with the primary objective and where they do not increase the financial risk to the Fund and our ability to pay pensions.
This Statement incorporates changes resulting from the Fund’s most recent investment strategy review including changes to the asset allocation and the setting of climate change objectives. The setting of explicit climate objectives reflects the Fund’s belief that climate change presents a material financial risk to our assets and managing this risk is consistent with our over-arching fiduciary duty to the scheme members.