Statement of investment policy

(1) The administrator of a pension fund shall formulate and give effect to a statement of investment policy that has regard to all the circumstances of the pension fund, in particular– (a) investment objectives for the investment portfolio and each investment option, if investment options are offered; (b) permitted categories of investments; (c) diversification within the investment portfolio and the investment categories; (d) asset mix for the investment portfolio and any investment strategy; (e) risks affecting the investment portfolio; (f) rate of return expectations and expected volatility; (g) criteria for selection of investment managers; (h) liquidity of investments, having regard to the cash flow requirements of the pension fund; (i) the method of, and basis for, the valuation of investments that are not regularly traded at a public exchange; and Private Pensions 55 (j) criteria and process for related party (2) The administrator shall file the statement of investment policy and any amendments thereto with the Supervisor. (3) The administrator shall review and confirm the statement of investment policy at least annually, having regard to, in particular– (a) the pension fund’s compliance with the asset mix, diversification, liquidity, valuation and related party investment requirements set out in the statement of investment policy; (b) the pension fund’s compliance with the limits set out in the Regulations; (c) performance of the investments, having regard to the investment objectives and rate or return expectations; (d) performance of investment managers; and (e) whether the statement of investment policy should be revised, having regard to all the circumstances of the pension fund. 56 Private Pensions