How We Invest Your Money

We have separate investment strategies for our different types of pension schemes. We operate more than 30 defined benefit (DB) arrangements; each one has its own funding and investment strategy. For our defined contribution (DC) members, there are two different options for individuals saving in this way.

Fotolia_35270545_SInvesting Our DB Pensions

Each of the individual underlying defined benefit (DB) schemes has its own investment strategy which is tailored according to specific factors such as the demographic base of its members, the employer’s attitude to risk and its ability to fund the scheme.

We use external investment managers across a range of asset classes and investment styles to optimise returns on investment.

We aim to build long-­term relationships with investment managers who are aligned with our investment beliefs and policies.

We also offer an ethical option for those employers wishing to align moral or ethical considerations with their investments. Please see our Policy for Ethical Investments. For more information on this option, please contact your account manager.

Our Investment Managers

At any given point in time, we may have relationships with up to twenty different investment managers. The managers that we are currently working with are listed below.

  1. Aberdeen Standard Investments
  2. AllianceBernstein
  3. Ashmore
  4. AXA
  5. BlackRock
  6. CBRE
  7. First State
  8. Hayfin
  9. Invesco Perpetual
  10. King Street
  11. Legal & General Investment Management
  12. Marathon
  13. Meridiam
  14. Mesirow
  15. Nephila
  16. Ownership Capital
  17. RLAM
  18. Ruffer
  19. Sands Capital

Fotolia_5939583_SInvesting Our DC Pensions

We have a default option for individuals who want to delegate their defined contribution (DC) investment decisions to an investment manager.

The default option is a Target Date Fund (TDF), which is designed to provide a dynamic investment solution for members over the whole of their working lives.

It aims for fund growth in the earlier years and moves towards more conservative, less risky asset allocation as the ‘Target Date’ (the Retirement Date, selected by the Member) approaches. Over the life of the fund, the manager has the objective of performing in excess of the inflation rate so it grows in real terms.

This is sometimes described as a ‘glide path’ to retirement, meaning that the member is not being exposed to a high level of risk (and therefore a potentially rocky ride) in the years leading up to retirement.

We also have self­select options for individuals that want to decide how their money is allocated to different funds themselves. Members who choose this option have a choice of eight carefully selected and closely monitored alternatives, ranging from Global Equity, Property, Bond and Cash funds.

Read more about our investment funds.

Investing Ethically

We also believe it is important to offer an option for those who have ethical beliefs that they wish to reflect in their investment decisions.

So, we offer an ethical option for our defined contribution (DC) pension schemes.

The Ethical Fund is invested in Ethical Target Date Funds (TDFs). These Ethical TDFs invest in equity funds, which track the FTSE4Good Indices, MSCI World SRI Indices and UK government bonds (Gilts).

These Indices constitute companies that meet globally recognized standards on corporate social responsibility. Companies must be able to demonstrate they meet a broad range of environmental, social and governance criteria by having good performance on issues such as climate change, water, biodiversity, labour standards, tax transparency and anti-corruption. The funds also exclude some sectors like tobacco and defence.

Our Policy for Ethical Investments can be found here.

Default Option Factsheets

See our factsheets for the default option, which is a range of funds called Retirement Date Funds. Look at the factsheet for the year you expect to retire.
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