Dan Mikulskis serves as the Chief Investment Officer at People’s Partnership, provider of The People’s Pension, one of the UK’s largest defined contribution pension funds, where he leads the organisation’s investment strategy with a dynamic approach focused on securing sustainable outcomes for millions of savers. 

His vision - to empower a nimble team of investors to redefine the game for UK asset owners as the Master Trust market grows in scale - is now a reality, with the pension fund closing in on a £35 billion ($45 billion) milestone. Driven by a deep conviction in responsible investment, he champions its vital role as a driver of financial value and in creating a stronger, more sustainable future for society.

Dan took some time to talk about his start in the industry, his views on the changing pension landscape, and a handful of other topics.

(Note: This interview was conducted on March 3, 2025.)

How did you get started in the investment-management industry?

I started as an actuarial student with Mercer in their investment consulting practice. I feel fortunate about that on a couple of fronts as consulting is a great place to begin. You get a fascinating perspective of the industry and of asset management because you see so many different managers. I have also always appreciated the academic grounding associated with the actuarial exams.

CIOs are faced with a raft of macro data, earnings results and a barrage of news headlines. How do you view the broader market backdrop right now?

The broad macro backdrop is reasonably favourable for risk assets, although the challenge is that it is well priced in the obvious areas. Wrestling with that is the key. Beyond the headlines, I always try and ensure our processes are driven by our investment beliefs and objectives. That is half the battle, or we would be caught up in a whirlwind of headlines. That clarity gives us the edge; helping determine what stays in the portfolio and what needs adjustment. I try not to second guess market positioning too much at any given time, though we do analyse it. Beliefs and objectives are not always the most interesting things when you face these headlines, but I would prioritise them.

To what extent has the People’s Partnership (PP) progressed in integrating private markets investments into its capabilities? 

We are expecting a lot of activity this year and the key for us is setting up the capabilities to execute direct deals, co-investments and have the right partnerships in place, rather than being limited to pooled funds. Our growing size has helped us unlock that potential with a couple of new team members joining us shortly, which will help things move along in that direction. Every asset owner is wrestling with the question of building out in-house capabilities or outsourcing to an asset manager. We are aiming for a hybrid model. While we will keep leveraging key external partners for some investments, there are areas where we must take the reins. Owning our conviction is non-negotiable - whether it is selecting the right managers, engaging directly in the markets, or driving our strategies forward. The challenge lies in balancing what to manage internally versus externally, and maximising value from our external partners.

Building on PP's strong responsible investment policy foundation, how will you enhance its approach to drive outcomes? 

We have made some big allocation changes, and that was based partly on the responsible investment policy that we have previously published. We set clear expectations for the managers and providers that are working for us, with an explicit sense that we will take significant actions if our expectations are not met or if somebody else can meet them better. That is the framework we operate in. A key part of that is moving into segregated mandates which gives us more control around reallocating assets. By setting firm expectations and proving we are ready to act, we are sharpening our focus on achieving meaningful outcomes. (Note: The People’s Pension recently announced the move of £28 billion ($36 billion) of investments from State Street to Amundi and Invesco in a switch with a focus on Responsible Investment due to sustainability and ESG concerns.)

What are your views on the regulatory divergence between the U.S. and Europe on the ESG front?

We are seeing more variation in terms of manager positioning than in the past which is a more realistic reflection of reality. Different managers will naturally take varying approaches, and I tend to view this positively as it brings clarity to the landscape. For asset owners, this transparency makes it easier to identify alignment - whether at a strategic, top-level basis or on a more specific, product-level basis. 

The Chancellor has talked about consolidation of DC pension schemes to create so-called “mega funds.” Are there any legislative changes on the horizon that could significantly impact the retirement landscape, or any that you would like to see?

I believe in scale. This is underappreciated in the UK, because typically we have had a fragmented pension system. I have been in the pensions space for more than two decades, and the whole time we have had many subscale funds. Having been at People's Partnership over the last year and a half, I have seen what scale gets you in terms of the mandates you can drive and the value you can deliver. So, I do think keeping in mind that scale is important. It was good to see that is what the government is thinking about in the latest consultation rounds.

Another key consideration in the DC space is the concept of single pricing with providers. Currently, providers in the UK often present pricing options tailored to individual employers. By contrast, Australia adopted a single pricing model some time ago, which has brought significant implications for investment strategies. It enables the adoption of more sophisticated approaches, as providers are no longer pressured to slash prices to compete on a bespoke basis. This shift removes constraints and fosters greater strategic innovation, a concept that is under-recognised in the UK but could present real opportunities for advancing the market.

How does PP think about helping its members with decumulation? 

The DC market is poised for a significant shift as providers focus on delivering stronger decumulation and retirement solutions - a key strategic priority for us in the coming years. Certain developments, like CDC (collective defined contribution) schemes, are expanding the landscape. We are aiming for a “do-it-for-me” approach rather than asking our members to jump through multiple hoops to define what they want from their pensions. The goal is not to overwhelm members with excessive choices but to ensure good pension income in retirement. From an investment perspective, the fundamentals are straightforward. Even basic strategies, like investment-grade credit yielding around 5-6%, provide a solid foundation for retirement portfolios. However, the challenge lies in managing member expectations about their retirement income - how it might fluctuate over time or adjust for inflation. The true innovation lies in the member communication experience, creating clarity and confidence around retirement outcome solutions. By refining this journey, we aim to align the right products with members' needs while helping them understand and plan for their financial futures.

Boosting economic growth and implementing key infrastructure projects are key objectives of the UK government. How does this affect PP’s investment decisions? 

Our priority remains securing the best returns for our members. That said, there is a compelling case for UK assets in the coming years, given their attractive valuations. On top of that, the lack of currency hedging requirements and lower running costs gives UK investments an edge over comparable global assets. If these assets are priced to encourage private capital participation, they could deliver robust performance.

Historically, infrastructure and energy projects in the UK have faced significant delays due to challenges like planning permissions and grid connections. However, there are signs of momentum under the new government. Take the West Burton Solar Farm project1, for example - it highlights a shift toward unlocking growth by clearing the logjam in asset pipelines. Being based in the UK, it makes sense to evaluate domestic assets on their merits and see how they compete with global alternatives. With evidence of progress, UK investments are well-positioned to deliver value.

What is the biggest challenge in your role? 

It is the high-quality problems that come with growth. I am trying to build for today but also keeping an eye on where my team needs to be in five years when we will be a fundamentally transformed organisation, potentially reaching £60+ billion in size. That vision demands building capabilities that not only address our current position but also align with our long-term ambitions, all within the constraints we face today. Balancing these overlapping timelines is no small task, but we are not navigating it alone. Australian super funds, for example, have already faced similar crossroads. Engaging with them and other experienced asset owners who have grappled with these complexities could provide invaluable insights. 

What do you like to do to unwind outside of the office?

At home, my two young boys keep me on my toes, and they are such a big part of my life outside of work. Spending time with them is something I genuinely enjoy. When it comes to unwinding, running is my go-to escape. Those early morning runs are my slice of “me-time,” whether I am listening to podcasts or music.

1. UK Government (January 2025): West Burton Solar Project development consent decision announced. Accessed March 2025