The DB Section investments
DB Section asset allocation benchmarks
The DB Section investment strategy aims to hold assets in three specific asset classes. The strategy sets benchmarks for the percentage of the overall DB Section assets to be held in each of these asset classes.
- Illiquid Credit 3.2 %
- Multi-Strategy Credit 1.8 %
- Liability Matching assets* 95.0 %
- Total 100 %
* Liability matching assets consist of secure income assets, fixed interest gilts, index-linked gilts, corporate bonds, asset backed securities, cash and swaps
Over the year to 5 April 2022 the Trustee made no significant changes to the Scheme’s portfolio.
In September 2022 the Trustee published its TCFD Report - Disclosures in respect of the Task Force on Climate-related Financial Disclosures (TCFD). You can download a copy of this report from the ‘Formal documents’ area of the ‘Document library’ on our Scheme website
DB Section investment performance
Allowing for income, capital gains and movements in market values, the return on the Scheme’s DB Section assets for the 12 months to 31 March 2022 was -3.7% which was 0.1% above the benchmark return.
| Period to 31 March 2021 | 1 year | 3 years | 5 years |
| DB Section return (% per annum) |
-3.7 | 1.1 | 1.9 |
| Benchmark return (% per annum) |
-3.8 | 1.1 | 1.8 |
Please note: The investment performance is measured at a different date to the assets being valued for accounting purposes.
DB Section investment policy
The DB Section investment policy is determined by the Trustee in consultation with the Company and the Scheme’s Investment Consultant, Willis Towers Watson.
Corporate governance issues and the exercise of rights attaching to investments, including voting, are delegated to the investment managers as an integral part of the investment management function; voting rights will be exercised whenever practicable with the objective of preserving and enhancing shareholder value.
The extent to which social, environmental and ethical considerations are taken into account in investment decisions is left to the discretion of the investment managers subject to these considerations not having a prejudicial financial impact on the securities held.
All the Scheme’s investment managers are regulated by the Financial Conduct Authority (FCA) and have authority for the implementation of investment policy consistent with their respective mandates. The Scheme’s investments are invested in accordance with section 40 of the Pensions Act 1995.
The investment managers are remunerated on the basis of a fee determined by the value of the funds under management. These fees are payable quarterly.
You’ll find more information on the Trustee’s investment policy within the DB Section’s Statement of Investment Principles, available from the ‘Documents’ section of the Scheme website.