Investment Strategy

Purpose of the Fund

The Political Office-Bearers Pension Fund is a defined contribution retirement fund. The starting point in setting the investment strategy is to define the purpose of the Fund. The Trustees have answered this as follows:

"The Fund exists to target reasonable and competitive retirement benefits for members. A reasonable retirement benefit for an in-service member with 35 years service at retirement and an average career progression is a capital sum of some 9 to 10 times pensionable salary at retirement."

Investment Target

The reasonable retirement benefit is a target that cannot be guaranteed. The target is based on the assumptions that:

• 15% of the member's pensionable salary will be set aside as retirement savings
• Investments will earn at least 4.5% per annum in excess of inflation over the long term
• The member will retire at age 65

Investment Policy Statement

The Fund's investment strategy is detailed in its Investment Policy Statement, which covers:

• The investment philosophy the Trustees have adopted
• Investment objectives for the portfolios
• Investment approach
• How the Fund chose the investment managers

Disclaimers

Investment is a complex area and every attempt has been made to simplify this for ease of understanding. This may result in some areas being covered in relatively little detail. Readers should note that:

• Past investment performance is not necessarily a guide to future investment performance.
• The information contained in this guide does not constitute advice by either the Board of Trustees, nor its advisors.
• Members may need to seek expert financial advice before making an investment decision.