Our approach to investing

The money you pay into the scheme (plus any returns), is invested into a wide variety of opportunities, companies and brands, which have been carefully selected to generate financial returns in line with the Trustee’s mission to ‘pay members’ pensions securely, affordably and sustainably’.

Spreading investments in this way helps to deliver better long-term outcomes for our members and gives greater flexibility and resilience against current and future risks.

This means that along with financial assets, like stocks and bonds, our investments also include more physical opportunities such as renewable energy, infrastructure, property and development in the UK, and others. These are known as real assets, and you can learn more about them below.

You can read more about our approach to investing in the news piece linked below.

News: Your Pension is invested on your behalf

Investing in Real Assets

Investing in real assets provides an opportunity for us to deliver attractive long-term returns for your pension.

Railpen, the scheme administrator and the organisation responsible for investing members’ money, has a dedicated Real Assets Team.

They invest in physical assets, which generate positive, long-term returns for our members, such as commercial and residential property and infrastructure, with a particular focus on positive social and environmental investments.

These types of investments are relatable because they are something we can see, hear, even touch in our day-to-day lives – like the houses we live in, where we go to work or shop, and even solar farms that provide green energy to local communities.

Example investments in this area, include 2 wind farms in Scotland - 1 in South Ayrshire and the other in Argyll and Bute - and 2 biomass investments in Sleaford, England and Port Talbot, Wales, all generating renewable energy to reduce dependence on fossil fuels.

We have also funded the redevelopment and extension of Monkwearmouth Hospital, an existing mental health facility in Sunderland for the Cumbria, Northumberland, Tyne and Wear NHS Foundation Trust.

You can read more about our investment in real assets on the webpage linked below.

Railpen’s real assets page.

Choosing which Real Assets to invest in

When making their investment decisions, the Real Assets Team consider a variety of environmental, social and governance factors (ESG). Railpen believe these factors are not only a significant driver of investment outcomes, but also help make a positive contribution to the world our members retire into too.

Alongside its commitment to Sustainable Ownership, Railpen is also a significant investor in something called 'place-based investments’ – investments that seek to secure financial returns for pension scheme members like you, while also seeking to have a positive local impact.

One such example is in Cambridge, where Railpen has several commercial and retail sites and is currently one of the city’s largest real asset investors. We will be covering Cambridge in greater detail soon, so stay tuned!