We are an open, defined benefit pension scheme with a strong employer backing, positive cash flows and pensions obligations that extend to the end of the 21st century. In investing our assets we aim to balance twin objectives: to achieve sufficient long term returns for the Scheme to be affordable, and to manage risks to keep the contribution rate as stable as possible.
We report regularly through our website on how these assets are invested, taking account of the needs of our employers, employees, wider society and the environment.
To achieve our investment objectives we invest in a range of assets globally, including:
- bonds (fixed interest securities)
- private equity
- sustainable real assets (including property, infrastructure, forestry and agriculture)
We have a strong focus on responsible and sustainable investment, as we consider environmental, social and governance factors create real risks and opportunities for the Scheme, particularly given its long term nature. Other areas of the website provide more detail on our approach to responsible investment, climate risk and stewardship.
All our day to day investment management is delegated to specialist investment managers, but we retain direct responsibility for asset allocation, manager selection and manager monitoring.