if £15m was to be invested, taking a 5 to 10 year view and having considered the range, it was suggested that more should go in when the market was low.
Less would then be needed at a future stage to reduce the deficit.
If you have fully documented not only your investment decisions, but your investment decision making process and also the rationale for the strategy, then this ought to offer you some protection in the event of you being challenged as a trustee.
However, for your SIP to offer you some protection, we believe that it is vital that it reflects your actual policies rather than an idealised version.
The Finance Director referred to actuaries taking a long term view.
This results in the actuarial review being undertaken every three years with no interim review during periods of significant changes in performance in financial markets.
The FSS for the London Borough of Bromley Pension Fund was previously updated in 2009 and following a detailed review a revised statement was presented for approval.
The consultation proposes a set of simplified, higher-level principles and the development of authoritative best practice guidance and tools, which will help trustees to improve investment decision-making and governance.
A suggestion was also made about the timing of investments. 7000, the Fund’s past deficit contribution should be lower and where the FTSE100 dropped to a lower level (e.g.
5000) it was suggested that this would be a better time to invest i.e.
This is fine and justifiable; you just need to make sure your SIP explains this properly.
We recommend that the SIP should be comprehensive and go beyond the legally required minimum content.
The statement known as the Statement of Investment Principles (SIP) covers the Council’s approach on eight separate issues and states how the Council complies with the six good governance investment principles set out by H. Treasury in its 2008 report: “Updating the March 2010, and a revised statement was presented for approval.