CARRIER (UK) PENSION SCHEME YEAR ENDED 31 DECEMBER 2020
TRUSTEE’S REPORT
Investment performance
The returns for the consolidated Scheme assets have been as follows:
12 months ending 31 December 2020; increase of 11.72% 3 years ending 31 December 2020; increase of 6.80%
Employer related investments
At 31 December 2020, 0.01% of the Scheme assets were indirectly invested in the employer through pooled investment vehicles with Legal and General and BlackRock.
Socially responsible investment
The Trustee believes that environmental, social and governance (“ESG”) factors, including but not limited to climate change, are potentially financially material over periods extending out to the funding of all benefits, and therefore have a policy to consider these, alongside other factors, when selecting or reviewing the Scheme’s investments. The Trustee will be reliant on the information presented by the investment managers and their investment advisors regarding the extent to which an investment manager allows for ESG in making their investment decisions. Furthermore, an investment manager’s excellence in this area will not take precedence over other factors, including (but not limited to) historical performance or fees. For the investments held in pooled funds, ESG considerations are set by each of the investment managers. The Scheme’s investment managers will ultimately act in the best interests of the Fund’s assets to maximise returns for a given level of risk.
For the investments held in segregated portfolios, the Trustee delegates ESG considerations to the investment managers such that it helps the portfolio to achieve its objective.
The Trustee believes that good stewardship and positive engagement can lead to improved governance and better risk-adjusted investor returns. The Trustee delegates the exercise of the rights (including voting rights) attaching to the Scheme’s investments.
The Trustee has taken into consideration the UK Stewardship Code, and the investment managers all have stated corporate governance policies which comply with many or all of these principles.
In selecting and reviewing their investment managers, where appropriate, the Trustee will consider the investment managers’ policies on engagement (including exercise of voting rights) and how these policies have been implemented.
The Trustee does not consider any non-financial matters, such as members’ ethical views, when constructing the investment strategy and/or when selecting or reviewing fund managers.
Implementation Statement
In conjunction with the Scheme investment adviser the Trustee has prepared an Implementation Statement covering the voting and engagement policies and the actions of investment fund managers used by the Scheme. A copy of this Implementation Statement is provided at Appendix I to these financial statements.
COVID-19
Since March 2020, Covid-19 has had a profound effect on domestic and global economies, with disruption and volatility in the financial markets.
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