NUM Officials and Permanent Employees Superannuation Scheme.

The National Union of Mineworkers Officials’ and Permanent
Employees’ Superannuation Fund
Trustees’ annual report and financial statements
31 December 2022
Approved 24 July 2023
The National Union of Mineworkers Officials’ and Permanent Employees’
Superannuation Fund
Annual Implementation Statement
Fund year ended 31 December 2022

  1. Introduction
    This document is the Annual Implementation Statement (“the Statement”) prepared by the Trustees of The National
    Union of Mineworkers Officials’ and Permanent Employees’ Superannuation Fund (“the Fund”) for the year ending
    31 December 2022. The purpose of this statement is to:
    * set out the extent to which, in the opinion of the Trustees, the Scheme’s Statement of Investment Principles
    (“SIP”) required under section 35 of the Pensions Act 1995 has been followed during the year;
    * detail any reviews of the SIP the Trustees have undertaken, and any changes made to the SIP over the year as a
    result of the review; and
    * describe the voting behaviour by, or on behalf of, the Trustees over the year.
  2. Review of the SIP
    The SIP was reviewed, and a revised version published in February 2021, to incorporate the strategy required to
    complete the Buyout. The Buyout process is still underway and consequently there have been no changes to the SIP
    during the Fund year ended 31 December 2022, and in 2023 to date.
    The SIP was published on the Employer’s website:
    http://num.org.uk/wp-content/uploads/2021/08/2021-02-NUM-SIP-for-publication-2.pdf
    The Statement does not cover details of any changes in the regulatory environment since the most recent SIP was
    formally agreed during the previous Fund year.
  3. Adherence to the SIP
    Overall, the Trustees believe the policies outlined in the SIP have been adhered to during the Fund year. The
    remaining parts of this Statement set out details of how this has been achieved for the Fund. These details relate to
    those parts of the SIP which set out the Trustees’ policies.
    3.1. Fund Objectives
    The Trustees defined that its main investment objective is to ensure that the Scheme can meet the members’ entitlements under the Trust Deed and Rules as they fall due, and to obtain exposure to investment that they expect will meet the Fund’s objectives as best as possible.
    In order to achieve these, the Trustees used a combination of actions and monitoring processes, assisted by its investment advisor, Barnett Waddingham.

Approved 24 July 2023

3.2. Investment Strategy
The Fund had intended to undertake a strategy review at least triennially.
The Fund invests in the following asset classes:
Rothesay Life bulk annuity policy
Schroder cash/liquidity fund (Sterling Liquidity Fund)
3.3. Investment Managers
The Trustees were not involved in the investment managers’ day-to-day method of operation and did not directly
seek to influence attainment of their performance targets. The Trustees have maintained regular monthly monitoring
of the Fund’s investment manager, Schroder Investments Limited (“Schroder”). The Trustees receive monthly
investment reports from Schroder.
3.4. Responsible Investment
The Trustees believed long-term sustainability to be an important and relevant issue to consider throughout the
investment process. The Trustees expected Schroder to have integrated ESG factors as part of their investment
analysis and decision-making process.
3.5. Other Matters
The Trustees consider the main remaining risk to be the solvency of Rothesay Life plc (formerly Rothesay Life Limited),
the insurer of the insurance contract.
The Trustees considered risk of the residual cash/liquidity holding from the following perspectives:
* Investment manager risk
* Concentration risk
* Liquidity risk
During the Fund year the Trustees considered, monitored and managed these risks in a number of ways:
* regular review of the monthly investment reports from the investment manager;
* ongoing monitoring of expected cashflows into and out of the Fund over each month;
* ongoing conversations with representatives of the principal employer;

  1. Voting and engagement
    The Trustees delegated responsibility for the exercising of ownership rights (including voting rights, where these apply) attaching to the investments. The nature of the Fund’s investments, being the annuity policy and the pooled investment vehicle meant the Trustees had minimal voting entitlement. Accordingly, the Trustees’ policy was to expect the insurer and investment manager to have and follow a conflict management policy given their regulated status.

Approved 24 July 2023