East Sussex Pension Fund’s recently published Annual Report and Accounts for 2024-2025 details a significant change in its investment pooling arrangements and adjustments to its investment strategy.
Investment Pooling Transition
The East Sussex Pension Fund will transition its pooling arrangements to Border to Coast Pensions Partnership. This decision follows the UK government’s non-support for the ACCESS Pool’s proposal in response to the ‘Local Government Pension Scheme: Fit for the Future’ consultation. The Fund aims to become a shareholder in Border to Coast Pensions Partnership by March 31, 2026. The financial impact of this transition is currently unquantifiable. (Source: Annual Report and Accounts 2024-2025, page 4, 44, 127)
Allocation Changes for Fiscal Year 2025
For the fiscal year 2025, the Fund reallocated its uncommitted strategic allocation from inflation-linked property to index-linked gilts. This change was implemented to reduce portfolio risk. Consequently, the allocation to index-linked gilts increased by 3% during the year, capitalizing on high bond yields. (Source: Annual Report and Accounts 2024-2025, page 5)
New Manager Appointment
During 2024, the Fund appointed BlueBay to manage an additional public credit mandate. (Source: Annual Report and Accounts 2024-2025, page 83)
Strategic Investment Review Initiated
A review of the Fund’s investment strategy will be undertaken in conjunction with the actuarial valuation, effective from the reporting year-end. This review, led by newly appointed investment advisors Hymans Robertson LLP (effective February 1, 2025), will assess the suitability of the current strategy in light of the government’s ‘Fit for the Future’ consultation, changes in funding position, contribution rates, and market outlook. (Source: Annual Report and Accounts 2024-2025, page 82)
Property Mandate Transition
The Fund’s ‘fund of funds’ property mandate, previously held with Schroders, was transferred to a CBRE Real Estate fund on the ACCESS Pool during the past year. This transition followed a procurement exercise conducted by ACCESS. (Source: Annual Report and Accounts 2024-2025, page 83)
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