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.
Investing 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.
- Aberdeen Standard Investments
- First State
- Invesco Perpetual
- King Street
- Legal & General Investment Management
- Ownership Capital
- Sands Capital
Investing 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.
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.