Investments
The Scheme’s investment strategy is tailored to the Scheme’s membership profile, the Trustee’s attitude to risk and the amount of financial support available from the Scheme’s participating employers. The Trustee takes professional advice on managing the Scheme’s investments.
The Scheme’s investment consultant, Aon, helps the Trustee set an appropriate investment strategy and appoint individual fund managers to look after the day-to-day buying and selling of the Scheme’s assets. The Trustee regularly reviews the fund managers’ performance to make sure that they are meeting the Scheme’s investment objectives.
The current fund managers are:
- Baillie Gifford & Co
- BlackRock Investment Management (UK) Ltd
- CBRE Global Investors
- DTZ Investments
- Insight Investment Funds Management Ltd
- Kohlberg Kravis Roberts & Co
- Legal & General (Pensions Management) Limited
- Macquarie Infrastructure & Real Assets (Europe) Ltd
- PIMCO Europe Ltd
| Auditor | Grant Thornton UK LLP |
| Banker | Bank of Scotland plc |
| Investment consultants | Aon Investments Limited |
| Custodian | JP Morgan Chase Bank |
| Lawyers | Linklaters LLP Eversheds Sutherland LLP Osborne Clark LLP |
The Trustee recognises that a sustainable approach is key to structuring the Scheme’s investments, and understand that environmental, social and governance (ESG) factors (such as climate change) must be considered when identifying risks and opportunities for the Scheme.
As part of their delegated responsibilities, the Directors expect the Scheme’s fund managers to take into account ESG considerations in the selection, retention and realisation of investments. The Directors receive ESG ratings information from their investment advisor, where relevant and available, to monitor the level of the fund managers’ integration of ESG on a quarterly basis.
The Directors also receive periodic training on Responsible Investment to help them understand how ESG factors, including climate change, could impact the Scheme’s assets and liabilities.
The Trustee’s approach to investment is outlined in the Statement of Investment Principles (SIP), which is regularly reviewed and updated. A copy of the current SIP is available to download here.
Alongside the Statement of Investment Principles, the Trustee is also required to make an Implementation Statement available. This sets out how the Trustee has put the Statement of Investment Principles into practice, particularly around stewardship and engagement.
The Trustee aims to be a responsible owner of the assets and markets in which the Scheme invests. An important part of this is making sure the Scheme’s fund managers exercise the rights the Scheme has as shareholders in companies to influence company behaviour though voting and engagement.
The Trustee is required to set out its approach to identifying and managing climate-related risks in an annual ‘TCFD report’. The Scheme’s TCFD report explains the governance and actions taken by the Trustee to identify, assess and manage climate-related risks and opportunities. You can view the report here.