The Compass Group Pension Plan recently published its Implementation Statement for the year ended 5 April 2025. This document outlines the Trustee’s actions in implementing its Statement of Investment Principles (SIPs) and provides insights into investment strategy changes and manager activities.
DB Section Assets Transferred to Annuity Policy
During December 2024, the Trustee agreed to purchase an annuity policy with Phoenix Life Limited (trading as Standard Life). This resulted in the sale and transfer of approximately £1,496.9 million of the DB Section Plan assets to Phoenix Life Limited. The annuity policy is now an asset of the Plan, covering the majority of DB Section liabilities. The Trustee has established an investment strategy and objectives for the remaining non-annuity residual assets of the DB Section (page 2).
SIP Updates Reflect Strategic Shifts and Merger
Changes were made to the Plan’s SIPs, which were last reviewed and updated in March 2025 for the DB Section and September 2024 for the DC Default and DC CRISP Sections. These updates reflect significant changes in investment strategy and the merger of the Plan with the Compass Retirement Income Savings Plan (CRISP) on 1 January 2024 (page 3).
DB Section SIP Revised Post-Annuity Purchase
The DB Section SIP was updated in March 2025 to reflect the investment strategy, asset allocation, and principles following the purchase of the bulk annuity policy. It also accounts for miscellaneous updates, including investment risks associated with the annuity policy and their ongoing management. Specific stewardship and engagement policies related to the investment of some surplus assets into Global Equities were also incorporated (page 3).
CRISP Section SIP Updated for Merger and Allocation Change
The CRISP Section SIP was updated in September 2024 to reflect the merger of CRISP into the Plan, effective 1 January 2024. The update also confirmed the Trustee’s policy on investing assets in DC default arrangements in illiquid investments. A change was made from the Active Emerging Markets Equity Fund to the Passive Emerging Markets Equity Fund, and total expense ratios were amended to the latest available (page 3).
DC Default SIP Addresses Illiquid Investments
The DC Default for legacy DC (including AVC) funds SIP was updated in September 2024 to confirm the Trustee’s policy on investing assets in DC default arrangements in illiquid investments (page 3).
Legacy DC Lifestyle Strategy Replaced for Diversification
During the reporting period, the Trustee replaced the L&G lifestyle strategy for members more than 10 years from retirement. This change was made to increase asset diversification and aim to reduce volatility in the approach to retirement (page 6).
L&G Sustainable Property Fund Removed
The Trustee made a decision to remove the L&G Sustainable Property Fund from the range of funds available to members. This decision was based on the conclusion that an increase in charges for this Fund meant it no longer offered value for members. This change was made after the Plan year-end (page 6).
Global Equities Investment for Residual DB Assets
On 1 April 2025, the Trustee reinvested some of the residual non-annuity DB assets of the Plan into Global Equities. These assets have associated voting rights, and their voting and engagement activity will be reported in the next fiscal year (page 6).
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