Funding and investment policies
Funding strategy statement
The Ministry of Housing, Communities and Local Government (MHCLG) requires each LGPS administering authority to have a Funding Strategy Statement (FSS).
The contribution review policy and the deferred debt and debt spreading policy should be read in conjunction with the Funding Strategy Statement.
The fund’s policy for ensuring employer pension liabilities are met:
Funding Strategy Statement PDF, 312 KB
The circumstances where the Fund would consider reviewing employer contribution rates outside of the triennial valuation cycle:
Contribution review policy PDF, 163KB
The circumstances where the Fund would consider alternative options to a lump sum exit payment:
Deferred debt and debt spreading policies PDF, 173 KB
Investment pooling
Brunel Pension Partnership
In 2015 the government announced that they wanted the 91 Local Government Pension Scheme funds to pool their investments into larger pools in order to achieve savings in investment management costs.
In response to the government agenda, Brunel Pension Partnership was set up to explore the options for pooling investment assets across ten Funds. The founding Funds comprise The Environment Agency Pension Fund, and the Local Government Funds of Avon, Buckinghamshire, Cornwall, Devon, Dorset, Gloucestershire, Oxfordshire, Somerset and Wiltshire. The collective assets of the pool are approximately £30 billion.
The objective of pooling the assets is to achieve savings over the longer term from both lower investment management costs and more effective management of the investment assets. The pool will look to deliver the savings based upon the collective buying power the collaboration initiative will produce. Local accountability will be maintained as each individual fund will remain responsible for strategic decisions including asset allocation. The pooling of assets will only affect the implementation of the investment strategy in terms of manager appointments.
Brunel Pension Partnership is authorised and regulated by the Financial Conduct authority as a full service MiFID firm.
More information and updates can be found on the Brunel Pension Partnership website.
Downloads
Investment strategy statement
The Local Government Pension Scheme (Management and Investment of Funds) Regulations 2016 require administering authorities to formulate and to publish a statement of its investment strategy, in accordance with guidance issued from time to time by the Secretary of State.
This statement sets out the principles that will guide the Committee when making decisions about the investment of the Fund's assets. It also sets out the framework for investing the Fund’s assets which is consistent with the funding strategy, as set out in the funding strategy statement.
View: BPF investment strategy statement PDF, 304 KB
View: Environmental, Social and Corporate Governance Policy PDF, 80 KB