Who does my pension company invest in?

picitup

I'm trying to find out and want to ensure their investments are ethical in my view.  This kind of touches on politics, but I don't want to discuss that and will not respond to any political questions as it's not allowed here (quite rightly)

so.......  I am 66 and retired and like many, have a few workplace pensions.   One is BT (British Telecom), Leicester County Council and the Pension Insurance Corporation who took over my pension from an old employer.

I've emailed each one and asked the question: "Do you invest in XXXXX?"

British Telecom have replied and after about a week, they said:

"We have no investment exposure to XXXXX"

Well, that was pretty clear.  LCC sent me a word document with a full page of A4 text, vaguely outlining their investment methodology which didn't answer my simple closed question.

I've pointed this out to them and am awaiting a reply.  I'm wondering if they do invest and don't want to say, or they think it's none of my business.  If push comes to shove, how can I get this information?  Maybe an FOI?  It's my money and I think I'll decide how/where it's invested

My intention is, if sensible, consolidate my pensions into a single provider (probably BT) that meets my ethical views.

I'll see what I can find out, hopefully with the help of others here.

Thanks for reading.......

Steve

Keep_pedalling

These are defined benefit pensions so it is not your money so you can’t decide where it is invested. As you are already in receipt of these pensions you cant transfer out of them to something like a SIPP where you would have a pot of money to invest as you see fit. Frankly this is a pointless exercise as what the scheme’s money is invested in today is going to change over time. 

DullGreyGuy

What is XXXX? Are you talking individual companies? Industries? Countries? 

PIC has several webpages on their investments starting from https://www.pensioncorporation.com/purposeful-investments.

Freedom of Information requests only apply to public bodies, BT and PIC are private companies and so do not have to respond to FoI requests. 

Isthisforreal99

You will be refusing the money then if they don't mirror your ethical stance right?

If you wanted the control you seek you would have opted out of these generous defined benefit schemes and took your chances investing yourself......and likely be a lot poorer.

picitup

Keep_pedalling said:

These are defined benefit pensions so it is not your money so you can’t decide where it is invested. As you are already in receipt of these pensions you cant transfer out of them to something like a SIPP where you would have a pot of money to invest as you see fit. Frankly this is a pointless exercise as what the scheme’s money is invested in today is going to change over time. 

@Keep_pedalling
Thanks for you very quick reply.  Not the one I was hoping for, but appreciate you informing me, so now I know.  Bummer.

picitup

DullGreyGuy said:

What is XXXX? Are you talking individual companies? Industries? Countries? 

PIC has several webpages on their investments starting from https://www.pensioncorporation.com/purposeful-investments.

Freedom of Information requests only apply to public bodies, BT and PIC are private companies and so do not have to respond to FoI requests. 

@DullGreyGuy

Thanks for your reply.  I've redacted the entities as I'm sure it would attract a flurry of debate, but anyway, according
to @keepp@Keep_pedalling, it's dead in the water anyway.  Oh well,,,,,,

picitup

picitup said:

DullGreyGuy said:

What is XXXX? Are you talking individual companies? Industries? Countries? 

PIC has several webpages on their investments starting from https://www.pensioncorporation.com/purposeful-investments.

Freedom of Information requests only apply to public bodies, BT and PIC are private companies and so do not have to respond to FoI requests. 

@DullGreyGuy

Thanks for your reply.  I've redacted the entities as I'm sure it would attract a flurry of debate, but anyway, according
to @keepp@Keep_pedalling, it's dead in the water anyway.  Oh well,,,,,,

picitup said:

DullGreyGuy said:

What is XXXX? Are you talking individual companies? Industries? Countries? 

PIC has several webpages on their investments starting from https://www.pensioncorporation.com/purposeful-investments.

Freedom of Information requests only apply to public bodies, BT and PIC are private companies and so do not have to respond to FoI requests. 

@DullGreyGuy

Thanks for your reply.  I've redacted the entities as I'm sure it would attract a flurry of debate, but anyway, according
to @keepp@Keep_pedalling, it's dead in the water anyway.  Oh well,,,,,,

PS Thanks for the link! 😁

picitup

Isthisforreal99 said:

You will be refusing the money then if they don't mirror your ethical stance right?

If you wanted the control you seek you would have opted out of these generous defined benefit schemes and took your chances investing yourself......and likely be a lot poorer.

Isthisforreal99 said:

You will be refusing the money then if they don't mirror your ethical stance right?

If you wanted the control you seek you would have opted out of these generous defined benefit schemes and took your chances investing yourself......and likely be a lot poorer.

Isthisforreal99 said:

You will be refusing the money then if they don't mirror your ethical stance right?

If you wanted the control you seek you would have opted out of these generous defined benefit schemes and took your chances investing yourself......and likely be a lot poorer.

No, of course I wouldn't be refusing money.  If you read it carefully you would have seen I said I would transfer the money out if appropriate to another provider, but as pointed out it's dead in the water anyway

dunstonh

picitup said:

DullGreyGuy said:

What is XXXX? Are you talking individual companies? Industries? Countries? 

PIC has several webpages on their investments starting from https://www.pensioncorporation.com/purposeful-investments.

Freedom of Information requests only apply to public bodies, BT and PIC are private companies and so do not have to respond to FoI requests. 

@DullGreyGuy

Thanks for your reply.  I've redacted the entities as I'm sure it would attract a flurry of debate, but anyway, according
to @keepp@Keep_pedalling, it's dead in the water anyway.  Oh well,,,,,,

its dead in the water because you have no rights over where it is invested.    The trustees will appoint administrators who then make decisions, which often involve external investment companies.

You have to forget about these pensions effectively as you have scheme pensions.  You don't have a money purchase pension where you can decide how its invested.

My intention is, if sensible, consolidate my pensions into a single provider (probably BT) that meets my ethical views.

Also not possible.

It's my money and I think I'll decide how/where it's invested

No its not.   You are a member of a scheme that pays you defined benefits.   The investments within the scheme that are there to fund those benefits do not belong to you.   

picitup

Tucosalamanca said:

Most investments will be a mix of products. Individual shares, index trackers, investment funds which may include a number of other funds, perhaps bonds, property, cash, currencies, commodities etc.

Even if your pensions don't directly invest in a company, they probably do indirectly.

In most cases you will be invested in a basket of items which will very likely include things that you're not particularly comfortable with. If you could remove the morally troublesome items, what do you do about the companies that supply them, banks, insurers, support services and so on?
It's a rabbit hole to fall into as everything is so interconnected.

A brief look at the BT pension suggests that they have a significant proportion invested in property.
What are the chances that they are letting space to companies that you don't agree with?
Or holding bonds in companies that supply industries that you find questionable?
BTPS_Fund_Fact_Sheet_10.11.23.pdf

In my opinion, more direct action would be a better way of effecting change, rather than worrying about the small percentage held in a pension portfolio.

I've no idea if you could transfer pots into a more 'ethical' fund?
Even if you could, the same brokers will be selling (and profiting from) products that you don't agree with, where do you draw the line?

Personally, it's something I've decided not to overthink.

@tucosalamanca thanks for your thought and I agree with what you're saying, it's all pretty complicated, which is why I'm here to ask the question.  I think the transfer question has been answered above and it ain't going to happen.

You're probably right and I'm known for overthinking 🤣

The replies are damn fast here!  Nice to see a forum so alive 😁

leosayer

It's disappointing that LCC were unable to answer such a straightforward question even if it is moot from the OP's perspective.

Do they have no way of seeing through to underlying investments or could they just not be bothered to do so?

BT showed you how it is done. Nice and clear response.