The NGUK Gas Pension Scheme (NGUKPS) recently published its ‘Implementation Statement – 1 April 2024 to 31 March 2025’, outlining its investment intentions and stewardship activities for the upcoming fiscal year.
Equity Allocation Ceases Following Section B Transfer
Effective October 1, 2024, the Scheme no longer holds a public equity allocation. This decision follows the transfer of Section B, which contained all public equity investments, to the National Gas Transmission Pension Scheme (NGTPS). The rationale for this change is attributed to the Scheme’s funding position, low-risk appetite, and continued de-risking journey (page 3).
Enhanced Focus on Credit Portfolio Engagement
With the cessation of public equity holdings, the Scheme’s stewardship activities will shift from voting, primarily associated with listed equities, to engagement within its credit portfolio. The Trustee will continue to rely on managers such as Legal & General Asset Management (L&G – Asset Management) and AXA to conduct these engagement activities on its behalf (page 7).
L&G – Asset Management Updates Voting Policy
L&G – Asset Management, a manager for the Scheme’s public debt investments, made several key changes to its voting policy. These updates include revisions to audit and remuneration committees’ independence, North America board composition independence, executive remuneration, whistleblowing and digitization in audit, risk and internal control, and the consolidation of standalone UK and North American policies into a global policy. These changes align with the Trustee’s engagement themes, including Natural Capital, Climate Change Resilience, Human Capital, Diversity & Inclusion, Board Compensation & Accountability, Executive Compensation, and Cyber Security (page 3).
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