Investments
Use and investment of fund money9
1
The Committee must invest any fund money that is not needed immediately to make payments from the fund.
2
The Committee may vary its investments.
3
The Committee’s investment policy must be formulated with a view—
a
to the advisability of investing fund money in a wide variety of investments; and
b
to the suitability of particular investments and types of investments.
4
The Committee must obtain proper advice at reasonable intervals about its investments.
5
The Committee must consider such advice in taking any steps about its investments.
Statement of investment principles10
1
The Committee must, after consultation with such persons as it considers appropriate, prepare, maintain and publish a written statement of the principles governing its decisions about investments.
2
The statement must cover its policy on—
a
the types of investments to be held,
b
the balance between different types of investments,
c
risk,
d
the expected return on investments,
e
the realisation of investments,
f
the extent (if at all) to which social, environmental or ethical considerations are taken into account in the selection, retention and realisation of investments, and
g
the exercise of the rights (including voting rights) attaching to investments, if it has any such policy.
3
The first such statement must be published on or before 1st December 2000.
4
The written statement must be revised by the Committee in accordance with any material change in its policy on the matters referred to in paragraph (2) and published .
Investments under section 11 of the Trustee Investments Act 196111
1
The Committee may invest in any investment made in accordance with a section 11 scheme without any restriction as to quantity.
2
A “section 11 scheme” is a scheme under section 11 of the Trustee Investments Act 196112 (which enables the Treasury to approve schemes for local authorities to invest collectively).
Restrictions on investments12
1
The limits which apply to certain sorts of investments are set out in the Schedule.
2
The percentages set out in the headings in Part I of the Schedule are the limits on the amount of each description of investment listed under those headings.
3
The percentages referred to in paragraph (2) are percentages of the total value of all existing investments in the fund before making the investment which is subject to the limit.
4
The limits set out in the Schedule only apply at the time the investment is made.
5
The exceptions to the limits are specified in Part II of the Schedule.