The Suffolk Pension Fund’s recently published Annual Report and Accounts for 2024-25 details significant shifts in its investment strategy, including a diversification of equity holdings, a reallocation from gilts to credit, and new commitments to alternative asset classes.
Strategic Asset Allocation Adjustments
For the fiscal year 2025, the Pension Fund Committee conducted an annual review of its strategic asset allocation. This resulted in a reduction of its allocation to UK equity with Blackrock and global equity with Newton. The rationale for these changes was to diversify equity investments (page 3, Suffolk Pension Fund Annual Report and Accounts 2024-25).
New Manager Appointments and Allocations
New allocations were made to two active managers: the Longview Global Equity fund and Baillie Gifford Long Term Global Growth fund. Additionally, 0.5% was reallocated from the UBS Low Carbon fund to the Columbia Threadneedle emerging markets equity mandate. A 4% allocation to UBS index-linked gilts was replaced with liquid investment grade credit with Fidelity (page 3, Suffolk Pension Fund Annual Report and Accounts 2024-25).
Specifically, the Committee agreed to diversify its equity holdings within the ACCESS Pool by reducing Newton from 12% to 5%, Blackrock from 8% to 5%, and UBS Group Low Carbon Fund from 7.5% to 7%. Concurrently, Columbia Threadneedle was increased from 1.0% to 1.5%, and new investments of 5% each were made with Baillie Gifford and Longview. These changes were implemented in three tranches during the financial year: June, September, and November (page 72, Suffolk Pension Fund Annual Report and Accounts 2024-25).
Increased Exposure to Alternatives via ACCESS Pool
The Committee continued to monitor the ACCESS pool and made new investments in its alternative asset offerings. This included a 12% allocation to CBRE as the pool’s appointed property manager for Global and UK Core property investments. The Committee also made a 2% allocation to Timber (page 3, Suffolk Pension Fund Annual Report and Accounts 2024-25).
Further details indicate that CBRE was formally appointed as the Fund’s property investment manager on June 3, 2024, replacing Schroders. CBRE was appointed to provide UK and Global Property by APEX on behalf of the ACCESS Pool, with an allocation of 8% to UK Property and 4% to Global Property. This was funded from the 10% allocation to Schroders and a 2% reduction from the UBS Group Climate Aware Fund. The transition of UK property from Schroders to CBRE was implemented on October 1, 2024, with global property investments to follow as opportunities are identified (page 72, Suffolk Pension Fund Annual Report and Accounts 2024-25).
On November 29, 2024, the Pension Fund Committee decided to allocate 2% of the Fund to the Timberlands asset class, with 1% each to JP Morgan and Stafford International. These investments will be made over time as opportunities are identified and will be funded by reducing M&G and Janus Henderson fixed income investments by 1% each (page 72, Suffolk Pension Fund Annual Report and Accounts 2024-25).
As of March 31, 2025, the Suffolk Pension Fund has £4.001 billion invested within the ACCESS Pool, representing 90% of the Fund’s investment assets (page 72, Suffolk Pension Fund Annual Report and Accounts 2024-25).
Future Asset Pool Transition Mandated
On April 9, 2025, the Suffolk Pension Fund was informed that the ACCESS Asset Pool’s proposal in response to the Government’s ‘Fit for the Future’ consultation was not approved. Consequently, the Suffolk Pension Fund has been prescribed to join another asset pool. The Fund is required to submit an in-principle decision on the LGPS Asset Pool it will transition to by September 30, 2025. Pension Fund Officers, alongside ACCESS and professional advisers, are assessing the remaining LGPS Asset Pools to identify the most suitable option. The Pension Fund Committee will make an in-principle decision at its meeting on September 17, 2025 (page 4, Suffolk Pension Fund Annual Report and Accounts 2024-25).
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