29/06/2011
Proposal from the Nuclear Decommissioning Authority (NDA) to merger the GPS Pension Scheme (GPS) with the Combined Pension Scheme (CNPP)
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All investments, except AVCs, Bonus Waiver, Shift Pay Pension Plan and Defined Contribution Funds, have been managed during the year ending 31 March 2009 under review by Insight Investment Management (Global) Limited, MFS International (UK) Limited and Legal and General Investment Management.
The Scheme’s investment strategy is agreed by the Trustee after taking appropriate advice. The investment strategy specifies the target proportions of the fund which should be invested in the principal market sectors. It is the responsibility of the Investment Managers to manage the Scheme’s assets day to day and to invest within the confines of the agreed investment strategy. The management of the Scheme’s assets at 31 March 2009 was split as follows:
| Manager | Legal & General Investment Management | Insight Investment Management (Global) | MFS International (UK) Limited |
|---|---|---|---|
| Role | Passive Multi Asset | Bonds | Overseas Equities |
| Proportion of assets | 28.8% | 48.6% | 22.6% |
The Scheme’s strategy, which applies to all sections, as at 31 March 2009 is outlined below:
| Strategy | |||
| total% | Ranges | Benchmark Index | |
| UK Equities | 24.0 | ±5 | FTSE All Share Index |
| Overseas Equities | 26.0 | ±5 | |
| North America | 8.5 | FTSE W USA Index | |
| Europe (ex UK) | 8.5 | FTSE AW Developed Europe (ex UK) Index | |
| Japan | 6.0 | FTSE W Japan Index | |
| Pacific Basin | 3.0 | FTSE AW Developed Asia Pacific (ex Japan) Index | |
| Bonds | 50.0 | ±5 | |
| Index Linked Gilts | 17.5 | FTSE A UK Index Linked Gilts Over 5 Year Index | |
| Fixed Interest Gilts | 12.5 | FTSE A UK Fixed Interest Gilts All Stocks Index | |
| Corporate Bonds | 20.0 | iBoxx £ Non Gilts Bond All Maturities Index | |
On 30th March 2009 the Trustee increased the Corporate Bond holding from 15% to 20%. Fixed Interest Gilts were reduced from 15% to 12.5% and Index Linked Gilts were reduced from 20% to 17.5%.
Legal & General Investment Management, the passive manager has the role of ‘swing manager’. As such they are responsible for maintaining the overall asset allocation within given ranges. Following volatility in the financial markets, the Trustee decided to suspend automatic balancing in October 2008. In January 2009 the Trustee reintroduced re-balancing on a quarterly basis using a control range of +-5%.
AVCs, Bonus Waiver, the Shift Pay Plan and Defined Contribution funds are managed by the Prudential Assurance Company Limited.
For further information, please click on the Scheme Report and Accounts icon.
© GPS Pension Scheme 2009.