Managing the Scheme's money
What’s on this page:
Managing the Scheme's money
What’s on this page:
How we look after the Scheme's investments
Managing the Scheme’s investments is a bit like keeping an eye on the weather – you need to plan ahead and be ready for changes. That’s what we do with the Scheme’s funds: we spread the money across different types of investment to help manage risk and support investment growth over time.
I’m Stewart Imeson, one of your Trustee Directors and a member of the Investment Committee. I wanted to share how we look after the Scheme’s investments and help keep your pension secure for the future.
Our goal is straightforward: to manage the Scheme’s funds carefully, using a balanced mix of investments so we’re not overly reliant on any single area. We do this with two main types of investments:
- Assets that match what the Scheme owes – these help make sure the Scheme can meet its pension promises, even if interest rates, inflation or market conditions change.
- A mix of growth-focused investments –these aim to grow the Scheme’s funds, helping to support members’ pensions in the future.
We, along with the Scheme’s Fiduciary Manager, keep a close eye on the balance between these investment types, and make adjustments when needed. This helps give the Scheme the best chance of meeting its investment goals.
We also keep some cash or short-term investments on hand. This is so there’s always enough available to pay pensions and cover any other expected costs.
By keeping this balance, we aim to make sure the Scheme is secure, well-managed, and ready for the future – so you can feel confident about your pension.
For the full picture, you can take a look at our Statement of Investment Principles. It’s our guide to how we invest, manage risk, and consider ethical and social factors.
How have our investments done?
To see how our investment approach is working, we compare the Scheme’s results with a set of similar investments (called a benchmark). This helps us understand whether the investments are performing as expected.
Because the benchmark is based on similar investments, it gives us a fair way to make that comparison.
Over the year to 31 March 2025, the Scheme’s returns were broadly in line (0.5% less than) the benchmark.
A step forward for the Scheme
Since 31 March 2025, we have been working to ensure the Scheme is better placed for the years ahead. As part of this, we’re pleased to announce that we’ve appointed Goldman Sachs Asset Management (GSAM) as our new Fiduciary Manager. We’re working closely with GSAM to review the investment mix and consider how to better support the Scheme in the long term.
Remember:
- The Scheme's investments are kept under regular review – the Trustee Directors and advisers keep a close eye on how things are going.
- We don’t rely on just one type of investment – using a mix helps keep the Scheme balanced.
- Ups and downs are normal – short-term changes happen, but the focus is always on the long term.
- Money is available when it’s needed – cash is held so pensions can be paid on time.
- Your pension comes first – decisions are made with members’ benefits in mind.
The Scheme's financial snapshot
The Scheme’s financial year ends on 31 March. Here, you’ll find some key information up to 31 March 2025.
Snapshot of the money paid in and out (in £ millions)
Scheme value at 31 March 2024
£8.3m
+
Investment income after expenses
£0.2m
-
Money that went out
£0.3m
-
Decrease in the value of investments
£0.9m
=
Scheme value at 31 March 2025
£7.3m
You may notice that the Scheme value shown here is different from the value of the Scheme's assets shown in the Summary Funding Statement. The Summary Funding Statement doesn't include Additional Voluntary Contributions (AVCs). The AVCs are included in the Scheme value here, which is why it is different from the value shown in the Summary Funding Statement.
Snapshot of the members in the Scheme
Your Summary Funding Statement
Every year, we produce a Summary Funding Statement to update you on the funding position of the Scheme. A full actuarial valuation - a thorough review of the Scheme’s finances – usually takes place every 3 years, with shorter annual checks in between. The most recent full valuation was as at 31 March 2024, and the next one is due at 31 March 2027.
How the Scheme is funded
The Scheme Actuary carries out these reviews and works out the target amount required to pay out all members’ pensions (liabilities). This is based on assumptions about things like how long members will live and how investments might perform. The funding position compares the Scheme’s assets (built up from contributions and investment returns) with this target. If the assets are lower, then the Scheme has a ‘shortfall’; if higher, it has a ‘surplus’.
Scheme funding position
The latest annual update showed that the Scheme’s liabilities reduced to £6.3 million and its surplus reduced to £0.9 million. The slight reduction in the surplus is due to changes in market conditions over the year. Reassuringly, the overall funding level has remained stable as assets and liabilities have moved in a similar way, reflecting the Scheme’s continued financial strength.
What if the Scheme has to wind-up?
We have no intention to wind up the Scheme. However, by law we must tell you what the Scheme’s funding position would be if this were to happen.
If the Scheme were to close, the Trustee Directors would need to secure all members’ benefits with an insurance company. Insurers charge a premium for this, and the Trustee Directors monitor these costs from time to time. The Scheme Actuary estimated the position as at 31 March 2024 to be a deficit of £1.6 million and as at 31 March 2025 to be a deficit of £1.1 million.
By law, we must confirm to you if there have been any payments to the Company out of Scheme funds in the last year. There have not been.
Is my pension protected?
If the Company became insolvent and there was not enough money to secure benefits in full with an insurer, members might not get their full pension. In this situation, the Pension Protection Fund (PPF) may step in.
The PPF provides compensation to members of eligible pension schemes whose employers become insolvent. The amount it pays varies depending on factors like your age, whether you are already receiving a pension, and the type of benefits you have.