Kingston Pension Fund has made a significant investment in affordable housing as part of its commitment to responsible investment and generating sustainable long-term returns. The fund's latest Responsible Investment Policy, updated in March 2026, highlights a strategic allocation of 10% towards impact investments, with a specific focus on areas that deliver positive social and environmental outcomes alongside financial returns.
This commitment is demonstrated through investments in initiatives such as the LCIV UK Housing Fund. This fund has made substantial commitments, including a £100 million investment in Legal and General's Affordable Housing Fund, which is expected to deliver approximately 3,500 to 4,000 homes. Additionally, a £100 million anchor commitment was made to Man Group's RI Community Housing Fund, aiming to facilitate the construction of over 350 energy-efficient, affordable family homes. While specific timelines for construction and availability are not yet provided, these commitments represent significant progress in addressing housing needs.
Further investments include commitments to Simply Affordable Homes Fund and the CBRE UK Affordable Housing Fund, which have already led to the acquisition of affordable homes and forward commitments for new developments.
The M&G UK Residential Property Fund's development at Castle Park View near Bristol's docks exemplifies this approach. The project includes 75 affordable homes and prioritises sustainability, circular economy principles, and local employment. It also features a district heating network powered by a water source heat pump and on-site solar panels, contributing to carbon savings.
These investments align with the Fund's commitment to the UN Sustainable Development Goals, particularly SDG 10 (Reduced Inequalities). The Fund has set a target to achieve Net Zero by 2050, with interim targets to reduce carbon intensity and increase investment in climate solutions. Beyond its 10% allocation to impact investments, the Kingston Pension Fund is pursuing broader responsible investment strategies. These include a preference for engagement over divestment to influence positive real-world change, and the implementation of exclusions for companies involved in the development of components for controversial weapons. The Fund also emphasizes stewardship and voting, expecting investment managers to actively engage with companies and utilising membership in the Local Authority Pension Fund Forum (LAPFF) for collaborative engagement.
Key climate change targets include achieving Net Zero by 2050, reducing Carbon to Value Intensity by 50% by 2030, increasing the number of companies with Science Based Targets initiative (SBTi) approved targets, and investing 15% of assets into climate solutions by 2030. The Fund's focus on UN Sustainable Development Goals (SDGs) is grouped into themes of Environment (SDG 13 - Climate Action, SDG 7 - Energy, SDG 11 - Sustainable Cities and Communities), Economic (SDG 8 - Economic Growth, SDG 9 - Infrastructure development), and Social (SDG 3 - Good Health and Wellbeing, SDG 10 - Reduced Inequalities). The Fund is committed to transparency and reporting through its Annual Stewardship Report on stewardship activities and impact investing. Further details on the Fund's business plan, budget, and governance can be found in the Public reports pack and Governance and Risk Update.
