Pace DB investments
Pace DB’s assets are invested with the aim of building up sufficient investment returns to meet the benefits promised to members.
The Pace Trustees, with the help of investment advisers, choose where to invest the assets and draw up a Statement of Investment Principles (SIP) which outlines Pace DB’s investment strategy. The SIP is reviewed annually and updated at least every three years and after an actuarial valuation.
The Trustees are in the process of implementing some changes to Pace DB's investments. The Trustees believe that the changes will allow them to meet their investment objectives as set out in the SIP.
The strategy being implemented will target more ‘liability-matching’ assets (including government and company bonds), which are less risky than ‘growth’ assets (such as company shares and property) and are expected to help stabilise Pace DB’s funding position.
Responsible Investment Policy
The Pace Trustees have adopted a Responsible Investment Policy, which outlines how environmental, social and governance issues are accounted for within Pace’s investment strategy. They have also looked at how climate change might affect Pace DB assets in the future, which you can read about in this document: Climate change risk in Pace DB. They also produce an annual Responsible Investment Report.
The UK Stewardship Code
The UK Stewardship Code aims to improve the way pension schemes interact with the companies whose shares they own, which in the long term should help improve the financial return for shareholders like Pace. The Pace Trustees have prepared a statement that sets out how Pace aims to comply with the code.