What
We invest the contributions from both employers and employees in a range of global assets.
Why
We invest so that the Fund has sufficient assets to pay pensions to members as they fall due.
How
We invest in a range of global assets, including equities (company shares), real assets (such as infrastructure and commercial property), corporate and sovereign bonds. We expect different return and risk profiles from each of these, and their combination in a diversified portfolio is expected to generate the assets required to pay pensions as well as keep contributions stable.
Investment Governance
The Pensions Committee is responsible for setting the Fund’s investment strategy. In addition as part of its collaboration with Falkirk Council Pension Fund and Fife Council Pension Fund, the Fund uses a Joint Investment Forum (JIF) to support its investment decision-making.
Responsible Investment
We believe that environmental, social and governance issues can affect the financial performance of companies. We have a responsibility to take these issues seriously, to act where appropriate and to be good stewards of the capital we deploy.
Strategy
To provide suitable investment strategies for the differing employer requirements, the Fund currently operates four investment strategies.
ESG
In line with legal opinion on the matter and our commitment to the Principles for Responsible Investment (PRI), environmental, social and environmental considerations are incorporated into investment decision-making as we believe that they can impact the financial performance of investments.
Climate Change
As an existential threat, we recognise climate change as a critical factor affecting future investment returns. It is driving government policies, corporate actions, and investor behaviour.
ENGAGE
Our ENGAGE publication, provides an insight into our approach to ESG and responsible investment activities, including voting and engagement.