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Marks & Spencer Pension Scheme

PRI reporting framework 2020

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.3. Indicate if the investment policy covers any of the following

01.4. Describe your organisation’s investment principles and overall investment strategy, interpretation of fiduciary (or equivalent) duties,and how they consider ESG factors and real economy impact.

The Scheme’s primary objective is to have sufficient funds to meet the Scheme’s liabilities when they are due. It aims to do this by:

  • investing in a range of suitable assets of appropriate liquidity which will generate, in the most efficient and effective manner possible, income and capital growth to ensure that there are sufficient assets to meet the cost of the benefits which the Scheme provides in its DB arrangement.
  • hedging interest and inflation risks to the Scheme’s funding by investing in appropriate gilts, interest and inflation swaps.
  • minimising exposure to excessive short-term volatility of investment returns.
  • minimising the long-term costs to the Company by maximising the return on the assets, whilst having regard to the risk objectives described above.

The Scheme’s primary concern in setting its investment strategy, is to act in the best financial interests of members and the investment strategy is formulated to support its objective of paying benefits as and when they fall due.

The Trustee believes that companies that effectively manage ESG risks can protect and enhance value by, for example, avoiding risk to their reputation, reducing potential financial liability and by increasing their ability to recruit and retain high-quality staff. 

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

The Scheme has a diminishing exposure to listed equity assets as a consequence of the maturity of the Scheme and the risk management approach of the Scheme to seek to hedge real interest rate and longevity risks in the Scheme. Consequently, when considering responsible investment, the Scheme also considers investments in credit (including corporate bonds) and real assets, including real estate, but also infrastructure and longer dated secure income assets. The nature of these assets means that the Scheme is very focussed on the sustainability of the cashflows from these assets and their residual value. Owing the long date of these, the Scheme devotes considerable effort to understanding the risks over the long term to these assets, including climate change and broader social and environmental risks. An increasing proportion of these assets that the Scheme invests in are in sectors such as; Social housing, Renewables and Healthcare related assets.

01.6. Additional information [Optional].


SG 01 CC. Climate risk (Private)

SG 02. Publicly available RI policy or guidance documents


02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.





02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.



02.3. Additional information [Optional].

SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

It is not expected that there would be any conflicts of interest.  However at the start of any Trustee meeting (and Investment sub-committee meeting) Trustees are required to declare any conflicts that they are aware of.

03.3. Additional information. [Optional]

SG 04. Identifying incidents occurring within portfolios (Private)