INVESTMENT APPROACH

Investment strategy is a key component in the effective management of any pension arrangement. Cheviot and VLK's dynamic and innovative approach delivers real benefits for employers and members.

Cheviot has delegated the management of investment strategy to its Fiduciary Manager; Van Lanschot Kempen (VLK) while retaining oversight.

The investment strategy continues to deliver against its targets and supports sponsors by improving the funding position of their defined benefit schemes, and therefore reducing the contributions required, and helps members in a defined contribution scheme to save effectively for retirement by adopting an appropriate level of risk.

Cheviot’s approach

Cheviot and VLK have designed a comprehensive investment approach. Whilst the underlying strategy may be complex, we provide simple and accessible information to members and their employers that helps them make their choices.

The investment philosophy is based on a number of core investment beliefs that have been agreed with VLK:

A strong governance process is required to enable performance to be reviewed regularly, and advice can be robustly challenged. Decisions requiring Investment Committee agreement need to be made and implemented quickly and effectively. An essential part of the governance is also to regularly review advisers.

The level of risk in each fund in the investment portfolio should be commensurate with the target return. Defined contribution assets need to keep pace with inflation.

The details of the portfolio design are more effectively managed by an FM manager.

The benefits of illiquid assets is directly linked to the relevant timeframe.

Considering materially financial factors are consistent with the Trustee’s fiduciary responsibilities to investors (both members and employers). Sustainability, including climate change will be a financially material factor now and increasingly so in the future. Progress towards the net zero commitment including establishing the baseline position of the portfolio and interim targets.

Long term investors have an opportunity to influence managers and companies in relation to climate change issues and stewardship.

Where practical, assets will be invested in funds which focus on ESG and climate change issues. Members are also able to self-select a Shariah Fund, and ESG fund and an Ethical fund.

The use of white-labelled funds on Mobius Life’s investment platform supports these beliefs and allows changes to be made within 24 hours.

This philosophy is then implemented differently across the various different schemes within the Trust.

Click the link to read our investment options factsheets, which provides more information on our default investment strategy, Lifeplan; self-select funds and other strategies; and charges.

Cheviot pension – investments factsheet

The latest factsheet is available here.

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Click the link to find out more about the investment approach we apply to our clients’ defined benefit pension schemes, including the core funds we use and ESG considerations.

Defined benefit schemes – investments factsheet

The latest factsheet is available here

DOWNLOAD