Statement of Investment Principles (SIP)
Is your SIP up to date? Fairfield Wealth can help
Fairfield Wealth can provide assistance to trustees in Guernsey who have a legal obligation to create and upkeep a Statement of Investment Principles (SIP) for the pension schemes they oversee. In compliance with the Guernsey Financial Services Commission (GFSC), the SIP should include the following details:
Investment objectives: The SIP must outline the investment objectives of the pension scheme, including any specific return targets or benchmarks that the trustees have set.
Investment strategy: The SIP must describe the investment strategy that the trustees have adopted for the pension scheme. This should include information on the types of assets in which the scheme will invest, the level of risk that the scheme is willing to take, and any restrictions or limitations on the types of investments that can be made.
Asset allocation: The SIP must specify the target asset allocation for the pension scheme, including the percentage of the scheme's assets that will be invested in different types of assets.
Environmental, social, and governance (ESG) considerations: The SIP must include information on how the trustees will take into account ESG factors when making investment decisions for the pension scheme.
Risk management: The SIP must outline the trustees' policies and procedures for identifying, measuring, monitoring, and managing investment risks.
Performance measurement: The SIP must describe how the trustees will measure and evaluate the performance of the pension scheme's investments, and how they will report on performance to scheme members.
Fairfield Wealth can work with trustees to develop and refine the investment strategy and asset allocation for the pension scheme. This can involve identifying appropriate investment opportunities, determining the appropriate level of risk for the scheme, and ensuring that the SIP is aligned with the scheme's investment objectives. We can also assist trustees in incorporating ESG factors into the investment decision-making process. This may involve identifying ESG risks and opportunities, developing ESG criteria for selecting investments, and monitoring the ESG performance of the scheme's investments.
The GFSC requires that the SIP must be reviewed and updated at least once every three years, or more frequently if there are any material changes to the pension scheme's investment objectives or strategy. Through its FIRM service, Fairfield Wealth can help trustees review and update the SIP on a regular basis, ensuring that it remains aligned with the scheme's investment objectives and market conditions. The service can help trustees establish appropriate benchmarks for measuring the performance of the pension scheme's investments, and develop reporting processes to communicate investment performance to scheme members.