Investment Policy Statement (IPS)

The Verso Umbrella Retirement Pension and Provident Funds (VURF) have established an Investment Policy Statement which adheres to the requirements of Regulation 28 of the Pension Funds Act of 1956 and which was established in accordance with PF Circular 130 issued by the Financial Services Board, now known as the Financial Sector Conduct Authority (FSCA).

The Trustees are responsible for the Funds’ assets as well as the selection of the appropriate investment manager(s) and portfolio(s) and the monitoring of investment performance and competitive fees.  The Trustees are aware that they are in a position of trust looking after money that belongs to the members and beneficiaries who expect the Trustees to act prudently.

Good standards of governance should ensure that the Funds’ investments are managed appropriately and will collectively reduce the risk of the material failure of an investment strategy. A number of principals of good governance have been identified by the Trustees and are taken into consideration when evaluating current as well as potential new asset managers.  The Trustees are cognisant of the requirements set out in the legislation relating to the ESG (environment, social, governance) factors which require evaluation from the asset managers on an ongoing basis. ESG factors can be described as:

• Environment – this refers to the risks created by business activities that have an actual or potential negative impact on air, land, water, ecosystems and human health.
• Social – this refers to the impact investment managers can have on society, such as education, infrastructure and ethical practices.
• Governance – this refers to the manner in which an investment manager is managed and how they assess good governance principles in the companies within which they are investing.

In addition, asset managers are required to report to the Trustees on their implementation of SRI (socially responsible investing) and their contribution to ensuring that they meet the 2030 SDG (Sustainable Development Goals).  These are a collection of 17 global goals set by the United Nations General Assembly.

The Trustees make use of a multi-manager approach for the actively managed portfolio offerings. In terms of the Fund’s investment philosophy each participating employer on the Fund has the following investment options available to them:

1. Fund Choice – a default investment portfolio which will apply to all or a category of members.  The default portfolio(s) may be selected from a range of predetermined portfolios.
2. Fixed Choice – a pre-defined “life-stage” model that will apply to all members.
3. Flexible Choice – a member investment choice (MIC) option whereby fund members may select an investment portfolio from a range of pre-determined portfolios, that reflect their personal needs and risk profile.

In terms of Guidance Note 1 of 2019 as issued by the FSCA, retirement funds are encouraged to make a copy of their investment policy statement or an abridged version thereof available upon request and at no cost. Should you wish to receive a copy of the Investment Policy Statement, you may contact the Principal Officer via any of the following:

Telephone: 021-9435330 or 021-9435357

Email: [email protected]

Any changes made to the investment policy statement are communicated in the Verso Umbrella Retirement Fund newsletter and poster that is produced semi-annually.