Investment matters The information set out on these pages covers how the money built up to pay members’ benefits is invested. The Trustee sets the Scheme’s investment strategy after taking advice from its appointed investment consultant, Barnett Waddingham.
Investing objective and de-risking framework The Trustee keeps a close eye on the funding position of the Scheme and has in place a ‘dynamic de-risking framework’. This framework enables it to move quickly to bank gains whenever there are improvements to the funding position. Moving to a lower target when affordable means less risk is taken and further increases the security of members’ benefits in the Scheme. The de-risking framework, agreed with RTX, was updated on 30 September 2024 to take into account the strengthened parent company guarantee. You can read more about this on page 6.
The Scheme’s investment strategy is set out in a document called the Statement of Investment Principles (SIP), which was last updated in August 2023. If you’d like to see this statement, you can read it by visiting https://online.flippingbook.com/ view/754805965 The Trustee also produces an annual Implementation Statement which describes how the policies set out in the SIP have been implemented. You can read the latest statement here: https://online. flippingbook.com/view/277418520 Responsible investing The Trustee believes it is important to assess appropriately environmental, social and governance (ESG) factors when selecting the Scheme’s investments. This means that, when selecting companies to invest in, it will look at many financially material factors, such as sustainable growth, environmental and climate change impacts, and other social and governance considerations. We are pleased to share that our second Task Force on Climate Related Financial Disclosures (TCFD) report is now available. The report explores how the Trustee assesses, monitors and manages the Scheme’s exposure to climate risks and opportunities. You can read it here: https://online.flippingbook.com/ view/667561390
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