Investment of Member Funds
Members build up a Pension Account in their own name in Construction Workers' Pension Scheme (CWPS), however, the underlying assets of these accounts are held in a common fund. The Trustee is ultimately responsible for looking after the fund and making sure that it is invested prudently so the members’ benefits can be paid when they are due.
The fund investment strategy is set out in a document called the Statement of Investment Policy Principles (SIPP), which sets out the Trustee approach to investments and their aims for the fund. In setting the strategy, the Trustee receives expert advice from independent investment consultants, and the Trustee also reviews the SIPP regularly to make sure that it remains appropriate. A full copy of the the Scheme's Statement of Investment Policy Principles is available on our downloads page.
The Trustee has a single investment strategy, which phases members’ Pension Accounts across a range of age-related investment funds. The Trustee invests members’ Pension Accounts in a range of age-related investment funds. When members are many years from retirement, their Pension Account will be invested in growth focused funds. Then as members approach retirement, their Pension Account is gradually invested in protection focused funds. This is done to protect the value of the members fund as they near retirement.
Contributions are allocated by the Trustee to eight separate main investment funds depending on the member’s age. Each fund is made up of units, and contributions are used to buy units in each fund. The unit price changes daily so the number of units that can be bought varies. The member’s account is credited with the number of units that the member and employer contributions buy.