The Draper Tools Ltd Retirement Benefit Scheme (Scheme)
Statement of Investment Principles (SIP)
February 2024
Introduction
This document provides details of the investment principles adopted by the Trustees in relation to the Scheme. The sponsoring employer is Draper Tools Limited.
This SIP has been drafted in order to demonstrate how the Trustees comply with the requirements of legislation; including the Pension Act 1995 and The Occupational Pension Schemes (Investment) Regulations 2005.
The Trustees will review this SIP regularly at least every three years to ensure that it remains accurate and relevant.
A copy of this SIP is available for inspection by Scheme members.
Background
The Scheme is an insured policy with Phoenix Life (Scottish Mutual) and whilst the Trustees remain responsible for the ongoing suitability of the scheme for its members the investment of the policy is managed by Phoenix Life.
The Scheme provides members with a guaranteed income through a basic annuity at the Schemes normal retirement date.
Investment
The Scheme is invested solely in the Phoenix Life (Scottish Mutual) With Profits Fund and the Trustees have no flexibility over the investment funds for members.
ESG
The Scheme does not consider ESG risks to be of material concern and there are no voting rights attached to the Schemes investments.
Members Views (non-financial matters)
The Trustees believe that its duties to members is best served by ensuring the Scheme benefits are paid out in a timely manner when they become due to members.
Investment Objectives & Strategy
The main objectives of the Trustees are;
For the scheme to provide the remaining members with their retirement benefits. The scheme seeks to achieve this by investing contributions via the Phoenix Life (Scottish Mutual) With Profits fund. This fund is invested in a diverse portfolio of assets with the aim of generating returns that will support the retirement income needs of members when they become due.
In terms of expected returns the Trustees monitor the performance of the With Profits fund annually.
Risks
The principal investment risk identified by the Trustees are;
There is a risk that the provider Phoenix Life Ltd may have insufficient funds within the With Profits fund to meet the guaranteed benefits in the policies. In this event the shareholders of the Phoenix Group would be liable and therefore the trustees will monitor the credit rating of the Phoenix Group annually.
Date; 19th February 2024
For and on behalf of the Trustees of the Draper Tools Ltd Retirement Benefit Scheme
