Our investment approach

A strong governance framework, clear accountabilities and empowered decision making create a positive culture that allows us to move at pace.

It will also allow us to take on considered risks and a more innovative approach to investing to drive benefits to members.

We need to be “joined up” to ensure we share insights, both top down and bottom up, to maximise the total portfolio value and manage trade-offs..

Investing more directly brings us closer to markets, increasing opportunities and allowing us to improve assets through our ownership.

We can better manage the asymmetry of information, particularly in private markets.

It also helps us to manage risks, including those related to ESG, allowing us to create more sustainable outcomes and a “virtuous circle” between investment markets, stakeholders and our communities. 

It allows us to invest differently, driven by data and insights, to define where we have conviction and will be an early adopter.

We will invest for the future in our capabilities and people.

We recognise there will be periods of underperformance in the shorter-term and that we will manage this risk as appropriate through time​.

The future is uncertain and so we will combine the best of internal and external approaches to be resilient to various outcomes to best meet our objectives.

Asset allocation is a key driver of performance and the primary way we manage risk is by ensuring asset allocations are appropriate for the circumstances of differing member cohorts.

Active management of asset allocation and within asset classes can often significantly improve risk adjusted returns.

We can build insights and capabilities to manage assets internally and reduce costs.

We flexibly consider opportunities to take advantage of those not available to smaller investors.

Positive cashflow allows us to be active in the market leading to better deal and information flows.

We invest for the purpose of delivering retirement income for our members.