Nottinghamshire Pension Fund’s recently published 2024-25 Annual Report details significant shifts in its strategic asset allocation, alongside continued focus on pooling and responsible investment. The report, published in October 2025, outlines changes approved by the Nottinghamshire Pension Fund Committee on February 13, 2025, following a review of the Fund’s strategic asset allocation and economic outlook (page 88).
Strategic Asset Allocation Revisions for Fiscal Year 2025
For the fiscal year 2025, the Nottinghamshire Pension Fund Committee approved a revised asset allocation. The allocation to listed equities was reduced by 3%, specifically a 2.9% reduction in developed markets and a 0.1% reduction in emerging markets. Concurrently, the allocation to inflation-linked gilts was increased by 1.5%, and the allocation to fixed income was also increased by 1.5% (page 88).
These adjustments were made as part of a de-risking journey. The rationale for increasing inflation-linked gilts was their potential to protect the Fund against inflation and match future cashflows, especially as yield levels had returned to normal. The increase in fixed income was intended to provide regular and secure income, contributing to the de-risking strategy (page 88).
Continued Commitment to LGPS Central Pooling
The Fund continues its collaboration with LGPS Central Ltd, the multi-asset investment pool. Investments under LGPS Central management increased to £1,987 million as of March 31, 2025, from £1,384 million as of March 31, 2024 (page 8, 70). The Fund is a shareholder in LGPS Central and actively participates in its governance through the Shareholders’ Forum, Joint Committee, and Practitioners’ Advisory Forum (page 15). The report states that all assets will be under pool management by April 1, 2026, if not sooner (page 100).
Focus on Responsible Investment and Stewardship
The Fund maintains a long-term responsible investment approach, actively engaging with equity holdings through voting rights and company engagement via its investment managers, LGPS Central, and membership in the Local Authority Pension Fund Forum (LAPFF) (page 3, 76). The Fund utilizes Hermes EOS for proxy voting, having made voting recommendations at 2,762 meetings (35,748 resolutions) during 2024/25. Hermes opposed one or more resolutions at 1,837 meetings, voted with management by exception at 107 meetings, and abstained at 5 meetings, while supporting management on all resolutions at 813 meetings (page 77).
Key issues for voting against management or abstaining globally included Board Structure (52.1%), Remuneration (25.5%), and Shareholder Resolutions (10.5%) (page 79). The Fund publishes annual Task Force on Climate-related Financial Disclosures (TCFD) reports, a triennial climate risk analysis, and has a Climate Stewardship Plan (page 3, 77).
Source