L&Q Exits Emerging Markets (L&G Fund), Raise Strategic Asset Allocation for Global Equities

The London & Quadrant Housing Trust Staff Benefits Plan recently published its Trustees’ Annual Report & Financial Statements for the Year Ended 31 March 2025.

Section Allocation Changes

For the fiscal year ended March 31, 2025, the Defined Benefit (DB) Section amended its investment strategy. The Trustees agreed to increase target hedging levels for both interest rate and inflation risks and to fully divest from emerging market equities. Concurrently, the strategic allocation to global equities was increased. This adjustment was made following advice from the Plan’s investment consultant, driven by rising yields and strong performance from risk assets, which improved the Plan’s funding level and presented an opportunity to simplify the portfolio and lock in gains. The Plan fully disinvested from the L&G Life HN World Emerging Markets Equity Index Fund during Q1 2025. The strategic benchmark allocation for the DB section now includes 14.5% in Equity, up from a previous undisclosed allocation, and 37.5% in LDI, also an increase from a previous undisclosed allocation. (Source: Trustees’ Annual Report & Financial Statements for the Year Ended 31 March 2025, page 11, 14, 42)

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