It might be tempting to want to make as much return on investments as possible. But what about the bigger picture?
The British Steel Pension Scheme is a 'mature' scheme. This means it has far more pensioners and related liabilities than active members and therefore must provide for pensions and benefits now as well as for active members in the future. In view of the mature nature of the Scheme's liabilities, and following strong recommendations from the actuary, a proportion of the Fund was invested in conservative low-risk assets. This maturity portfolio, as it is known, covers the bulk of the Scheme's pensioner and deferred pensioner liabilities and greatly enhances Scheme security.
The Trustee must take into account the needs of all members - not just current pensioners or current employees in isolation. So, going for high investment returns alone would be too great a risk to the Scheme security.
The Trustee has laid down investment guidelines in the Statement of Investment Principles (click to see a summary).