West Yorkshire Pension Fund (WYPF) recently published its ‘REPORT AND ACCOUNTS For the year ended 31 March 2025’, detailing its financial performance, investment strategy, and administrative activities.
Strategic Shift in UK Infrastructure Allocation
For the fiscal year 2025, WYPF increased its direct allocation to UK core infrastructure through GLIL, with the allocation within the Total Fund declining marginally from 6.6% to 6.5%. The fund acquired four properties directly, totaling £88 million. These acquisitions included a prime urban logistics asset in Croydon, a multi-let trade counter estate in Milton Keynes, a long-income retail asset in Edinburgh, and a multi-tenant prime industrial estate in Central London. This move aims to lessen ongoing fees and enhance control, enabling long-term investment throughout market cycles. To fund these purchases, the Fund redeemed some existing investments in UK commingled property funds. The DTZ Investors mandate will support WYPF in growing its direct portfolio cost-effectively, targeting multi-let assets with strong tenant covenants and a portfolio-level unexpired lease term of 6–10 years. (Page 105, 106)
Private Credit Allocation Expansion
During fiscal year 2025, WYPF’s private credit allocation more than doubled, increasing from 0.7% to 1.5% of the Total Fund. This allocation, which has an additional £242 million in undrawn commitments, is projected to stabilize between 1.5% and 2.0% of the Total Fund. The portfolio is divided into a Core portfolio, primarily comprising senior secured direct lending initiated in 2022, and a Legacy portfolio, which began investing in 2012 and focuses on opportunistic credit. (Page 106)
Private Equity Portfolio Adjustment
For fiscal year 2025, the private equity portfolio allocation decreased from 6.9% to 6.1% of the Total Fund. This was primarily due to a £151 million net distribution from the portfolio and a modest denominator effect, as the Total Fund’s return exceeded that of the private equity portfolio (3.9% vs. 2.7%). This decline aligns with the fund’s plan, following a peak of 7.8% at the end of September 2022. (Page 103)
Reclassification of Index-Linked Securities
For fiscal year 2025, index-linked securities were reclassified to Bonds in the Net Assets Statement. This reclassification aligns with the Code of Practice on Local Authority Accounting in the UK 2024/25, which does not treat bonds and index-linked securities as separate categories. The combined value of bonds and index-linked securities is now reported as a single aggregated figure. (Page 36, 60)
Chief Investment Officer Appointment
John Dewey was appointed as the Chief Investment Officer for West Yorkshire Pension Fund, effective April 2025. He replaces Leandros Kalisperas, who departed in January 2025. (Page 13)
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