The Land Rover Pension Scheme’s Annual Report and Financial Statements for the year ended 31 March 2025, recently published, details a new manager appointment and a change in currency hedging strategy.
New Manager Appointment in Return-Seeking Portfolio
For the fiscal year ended 31 March 2025, the Scheme appointed Man AHL Pure Momentum Plus to its Return Seeking portfolio with an initial commitment value of £23.5 million. This appointment was made at the discretion of the Fiduciary Manager. Assets to fund this manager came from available cash or full/partial disinvestments from other investment managers (page 19).
Currency Hedging Policy Adjustment for Return-Seeking Portfolio
During the fiscal year ended 31 March 2025, the Scheme updated its currency hedging policy. The new policy hedges overseas exposure in the return-seeking portfolio using hedged share classes where available, with the remaining currency exposure unhedged. This adjustment was implemented to provide additional collateral headroom and resulted in a higher USD exposure. The Scheme’s exposure to currencies other than Sterling within the return-seeking portfolio increased to 56% as of 31 March 2025, compared to 28% in the prior year. For the Cashflow Driven Investment (CDI) portfolio, overseas currency exposure is expected to be hedged back to Sterling, unless the cost is prohibitive. As of 31 March 2025, the CDI portfolio’s exposure to non-Sterling currencies was 0%, down from 2% in the prior year. The liability matching portfolio continues to invest solely in Sterling denominated assets (page 18, 45).
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