Isle of Wight Pension Fund Committee is set to convene on Wednesday, 26 November 2025, to address critical investment decisions, including the fund’s future affiliation with an investment pool. This follows a recent meeting of the Local Pension Board on 8 October 2025, where a strong recommendation was made for the Pension Fund Committee to make a definitive decision on joining a pool.
Strategic Asset Allocation Shifts Towards Private Markets
The Isle of Wight Pension Fund has strategically increased its target allocations to private market investments, specifically private debt and infrastructure, from 5% to 10% each. This decision, approved at the 24 May 2023 pensions committee meeting, was accompanied by an equivalent 10% reduction in the fund’s diversified growth target. The rationale for this shift is to achieve the fund’s long-term target of being fully funded within the next 20 years. (Source: Isle of Wight Council Pension Fund Annual report and accounts for the year ended 31 March 2025, page 99)
New Investment Manager Appointments for Private Markets
Following the increased target allocations to private markets, the fund conducted a selection exercise from September to November 2023, resulting in commitments to the JP Morgan Infrastructure Fund and the Pantheon Private Debt Secondaries Fund. The JP Morgan fund was fully invested in one drawdown on 28 March 2024, representing 3.9% of the pension fund’s assets as of 31 March 2025. The Pantheon mandate accounts for 3.5% of assets as of 31 March 2025, with capital calls expected to continue. (Source: Isle of Wight Council Pension Fund Annual report and accounts for the year ended 31 March 2025, page 99)
Divestment from Diversified Growth Fund
As the Baillie Gifford Diversified Growth fund no longer aligned with the pension fund’s strategic benchmark allocation, the committee arranged a disinvestment from this mandate in June 2024. The proceeds from this redemption were utilized to rebalance the Royal London UK bonds allocation, bringing it back in line with the strategic target. (Source: Isle of Wight Council Pension Fund Annual report and accounts for the year ended 31 March 2025, page 99)
Investment Pool Affiliation Decision Pending
The Local Pension Board, at its 8 October 2025 meeting, strongly advised the Pension Fund Committee to make a decision on joining an investment pool. This recommendation follows legal advice indicating the fund’s fiduciary duty to make such a decision, with potential government intervention if no local decision is reached. The committee is currently addressing new pooling arrangement expectations from the government, particularly after the outcome of the ‘fit for the future’ consultations and the anticipated introduction of a new pensions bill in early 2026. (Source: Minutes of the Local Pension Board meeting held on 8 October 2025, page 8; Isle of Wight Council Pension Fund Annual report and accounts for the year ended 31 March 2025, page 25)
New Treasury Management Strategy to be Approved
The committee is scheduled to approve a new Treasury Management Strategy for 2025/26. This strategy emphasizes high liquidity and security for cash deposits, with yield being a secondary consideration, aligning with the fund’s day-to-day operational requirements and investment manager calls. The strategy also outlines criteria for counterparty quality and monetary limits for investments. (Source: Committee Report, NEW POLICIES, 26 November 2025, page 179; Appendix 1: The Treasury Management Strategy, page 183)
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