Responsible Investment matters

Being a member of USS means that you have a dedicated and experienced team of fund managers looking after the scheme’s investments.

Money jar

One of our key beliefs is that a well-run and appropriately governed internal investment team is the best way to meet our long term investment objectives in the most cost-effective manner. The USS Investment Management teams actively manage a high proportion of investments in-house, and this is key to achieving these long-term investment goals.

This not only saves costs compared to other peers around the world, it also works to bring in strong returns on the assets in the scheme. These can be seen in the 2018 annual report and accounts where you can see that both sections of the scheme have performed well against benchmark funds*. Our experienced fund managers are dedicated exclusively to looking after the scheme’s investments to ensure our assets are well diversified and continue to grow over the long term.

The assets held and the oversight USS exercises as a responsible investor play an important role in determining the real value of your retirement income. We believe that our members want to retire into a world characterised by a healthy environment, vibrant economy and equitable society.

To support this aim, USS is actively involved in assessing how environmental, social, governance and ethical (ESG) issues impact the investments we make. As engaged stewards, we can influence how the companies we invest in operate, and engage policymakers on ESG issues. We have the largest responsible investment team for a pension fund in the UK and can use our seat at the table and voting rights to help encourage the businesses in which we invest to act responsibly. We can also play a part in areas such as addressing climate change and enhancing a company’s corporate governance, which can contribute to strong returns on investment.

From motorway service stations and shopping centres, to airports, the National Air Traffic System, and off-shore wind farms, USS invests in a wide range of investments across the UK and globally. Each time you see a Moto service station, fly out on holiday or see an off-shore wind farm, give a thought to how these businesses are working for you, and the part you’re playing in making a difference to the way those businesses operate, now and for the future.

* Past performance is not necessarily a guide to future performance. The value of investments may go down as well as up and the return of your investments is not guaranteed.