West Sussex Pension Fund Strengthens Local Investment Focus; Appointed Isio and CBRE, Extended Northern Trust Custodian Contract

The West Sussex Pension Fund’s Pension Advisory Board, in its recently published Public Document Pack dated October 31, 2025, has appointed multiple service providers and is researching ‘local’ investments.

Strategic Investment in Local Opportunities and Asset Pooling Evolution

The Pension Fund is actively developing its approach to ‘local’ investment and adapting to evolving LGPS asset pooling requirements. Following the government’s ‘Fit for the Future’ consultation, the Fund is working with the Border to Coast Partnership to ensure compliance by March 31, 2026. This includes the County Council becoming a shareholder of Border to Coast Pension Partnership and developing a transition plan for asset management by the pool from March 2026. A dedicated working group is being established to explore the Fund’s local investment strategy, define target ranges, and outline collaboration with the Mayoral Combined County Authority (MCCA) and Border to Coast to identify suitable local investment opportunities. (Page 67-68, 71, Public Document Pack, 31 October 2025)

Actuarial Valuation Reveals Stronger Funding Position

The 2025 Actuarial Valuation indicates a significant improvement in the Fund’s funding position. As of March 31, 2025, the whole Fund’s funding level has increased to 162% from 125% on March 31, 2022. This improvement is primarily attributed to higher future investment return expectations. The required return to achieve 100% funding has increased from 2.3% p.a. to 3.0% p.a., with the likelihood of achieving this return now exceeding 95%. The Funding Strategy Statement is undergoing a second consultation with employers until November 30, 2025, with a final version expected for approval by the Pensions Committee in January 2026. (Page 273-274, Public Document Pack, 31 October 2025)

Custodian Services Extended, Property Valuer Appointed

The Pension Fund has extended its custodian services agreement with Northern Trust for an additional two years on the same terms. Additionally, CBRE has been appointed as the independent property valuer following a procurement process utilizing the Crown Commercial Framework. (Page 62, Public Document Pack, 31 October 2025)

Covenant Adviser Appointed for Actuarial Valuation

Isio has been appointed as the covenant adviser to support the 2025 Actuarial Valuation exercise and the ongoing covenant monitoring framework. The delivery timeline for the assessment has been extended to November 2025 to allow for enhanced employer engagement. (Page 62, 69, Public Document Pack, 31 October 2025)

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