Our Investment Beliefs

Investment beliefs set the direction for our investment policy, practices and organisational culture. Whilst helping us to respond to our client needs by aligning with their beliefs and principles.

They help us define how we will create investment value, in the context of future uncertainty, risk and opportunity. Whilst helping us to make practical decisions about our investment style, selection and monitoring of investment managers, asset allocation, investment decisions, performance objectives, and approach to active ownership.

Recognising how important internal stakeholders are in translating investment beliefs into investment practice, we have worked together to develop, formalise and agree the final set of approved beliefs.

London CIV Statement of Investment Beliefs

1) Long term investors get better risk adjusted returns

2) We believe taking the right risk for the right return will maximise opportunities

3) Robust risk management and mitigation improves risk adjusted returns

4) We believe Responsible Investment mitigates financial risk and maximises opportunity

a) We believe good corporate governance improves outcomes

b) We believe in good stewardship and in proactive engagement

c) We believe management of climate change risk is a key element of our investment strategy

d) We believe diversity adds value for our clients

5) We believe diversification can improve returns and reduce risk

6) We believe that costs are important and should be managed

a) We believe managing fees and assessing remuneration will support cost effectiveness

b) We believe fund structuring and implementation costs matter

7) We believe clear objectives, expert knowledge and robust research will add value by supporting investment and manager selection

8) We believe transparency and accountability build client trust

9) We believe innovation and strong leadership supports more sustainable returns

10) We believe that a collective approach to investment improves returns and reduces risk

What do they mean in practice?

Our primary goal is to engage each fund and deliver our fiduciary duty to act in the best long-term interests of our clients and their members. Our Investment Beliefs and Principles set an expectation that we will seek to engage with companies to ensure they can deliver sustainable financial returns over the long-term as part of comprehensive risk analysis.

The Principles do not impose any restrictions on the type of assets help within the portfolio but rather clarify our expectation that recognised best practice standards across governance, risk management, stewardship and value for money will be delivered. You can learn more about our Investment Beliefs and Principles, as well as what they mean in practice here: 

Investment Beliefs and Principles
Responsible Investment Policy 2018
© London CIV 2021
London LGPS CIV Limited is a private limited company, registered in England and Wales, registered number 9136445. Registered office 4th Floor, 22 Lavington Street, London, SE1 0NZ. Authorised and Regulated by the Financial Conduct Authority number 710618. Registered VAT number 223 3802 40.

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