Strategic Rebalancing Towards Matching Assets
For the fiscal year ending March 31, 2025, the Nationwide Section executed a net increase of £402.3 million in fixed interest securities, index-linked securities, and derivative investments. This was accompanied by an increase in the repurchase agreement liability of £431.0 million. The rationale for these changes is a focus on improving both the matching and return-seeking risk profile. These adjustments were funded by a disinvestment of £168.4 million from pooled investment vehicles. The value of bonds in Matching Assets decreased due to rising inflation and global interest rates, which reduced the value of fixed-rate assets like gilts. (Source: ‘Annual report & accounts’, page 27)
Reduced Exposure to Return Seeking Assets
During the fiscal year ending March 31, 2025, the Nationwide Section decreased its allocation to return seeking assets. The total value of return seeking assets fell from £2,004.0 million in 2024 to £1,870.5 million in 2025. This represents a decrease from 44% to 48% of the return-seeking assets, which is within the operational range of the strategic asset allocation. The report notes that return seeking assets assets experienced valuation falls primarily driven by changes in Foreign Exchange rates. (Source: ‘Annual report & accounts’, page 13, 37)
Internal Auditor Change and Manager Change
Effective April 1, 2025, PwC was appointed as the internal auditor, replacing Deloitte LLP, which ceased its services on March 31, 2025. (Source: ‘Annual report & accounts’, page 3). Effective February 2025, Leadenhall Capital Partners LLP ceased its mandate. (Source: ‘Annual report & accounts’, page 3)
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