The Abbey Life Trust Securities Limited, Trustee of the Abbey Life Assurance Company Limited Staff Pension Scheme, recently published its Implementation Statement for the year to 31st March 2025.
Strategic Asset Allocation Ranges Introduced
The Trustee reviewed and updated its Statement of Investment Principles (SIP) in April 2025. The revisions incorporated ranges into the strategic asset allocations. This modification allows for temporary de-risking if deemed necessary (page 2, Implementation Statement, year to 31st March 2025).
Long-Term Objective: Eventual Buy-Out
During a June 2023 Investment Committee meeting, the Trustee discussed the investment strategy, funding level progression, and long-term objectives. The Trustee affirmed that the long-term objective for the Scheme is eventual buy-out (page 3, Implementation Statement, year to 31st March 2025).
Exclusions Aligned with Phoenix Group
The Trustee has instructed its investment manager, Aberdeen, to align investment exclusions with those of the parent company, Phoenix Group. This includes exclusions for controversial weapons and companies generating over 20% of revenue from thermal coal, oil sands, arctic drilling, and tobacco in direct investments. This alignment is achieved through periodic submission of an exclusions list from Phoenix Group, prioritizing financial materiality, sponsor alignment, and United Nations Global Compact principles (page 3, Implementation Statement, year to 31st March 2025).
Private Loans to Constitute Meaningful Proportion of Assets
The majority of the Scheme’s assets are liquid and realizable at short notice. However, a meaningful proportion of assets are planned for investment in private loans, which are illiquid in nature. The Trustee regularly reviews the liquidity of the Scheme’s investments (page 4, Implementation Statement, year to 31st March 2025).
Default Arrangement Review Concludes Appropriateness
In 2023, the Trustee, with assistance from its investment adviser, reviewed the default arrangement, the Standard Life Deposit and Treasury Fund. The review concluded that the fund continues to meet its objectives of capital preservation and returns similar to money market instruments, and remains appropriate for its role within the wider strategy (page 5, Implementation Statement, year to 31st March 2025).
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