How we invest
The rules, the frameworks and the decisions behind every dollar in the portfolio.
The Investment Policy Statement (IPS) is the framework through which the Board directs the Fund's investing. It sets out what we are trying to achieve, how much risk we may take, and what we may — and may not — invest in.
To protect the real value of members' savings over their membership — earning returns that at least keep pace with inflation and the cost of running the Fund.
The IPS doesn't work alone. Three sister frameworks sit alongside it, each covering a specific area of risk or planning.
How investment risks are identified, measured, monitored and reported.
How lending and counterparty risk is assessed, secured and reviewed.
The long-term target mix of asset classes and the ranges around it.
Every proposal moves through the same six checks before capital is committed. If it doesn't fit, the answer is no.
From a proposal, an approach, or our own search — matched against the strategic asset allocation.
Is the asset class within range? Is the sector permitted? Would it breach a counterparty, sector or Government exposure limit? If not, it stops here.
Financials, cash flow, security, legal position and governance are tested through the credit risk policy's due diligence gates.
The paper goes to the Investment and Credit Sub-Committee (ICC), which reviews it and makes a recommendation.
The ICC and the Board of Trustees approve or decline, in line with their delegated authorities.
After investing, we track performance, risk and IPS compliance — and report regularly to the ICC and Board.
Six principles the Investment Department applies to every decision, every day.
Every decision serves members' savings.
We take only the risks the IPS allows.
What falls outside the IPS is declined.
We check before we commit, and after.
Reviewed by the ICC, Board, auditors and CBSI.
We invest for decades, not headlines.
