The Hackney Pension Fund has achieved a significant milestone, reaching a funding level of 138%. This robust financial position was highlighted during a Pensions Committee meeting on Monday, July 27, 2026, as detailed in the Public reports pack.
Sam Yendall, Investment Advisor from Gallagher, presented the fund's investment strategy, noting that the strong funding level is a result of both positive asset performance, particularly in equity markets, and a decrease in the value of liabilities due to rising long-term interest rates. The fund's primary objective remains to meet its pension commitments to members, a goal it is well-positioned to achieve.
The positive asset performance was significantly influenced by equity markets. The decrease in the value of liabilities due to rising interest rates, specifically government bond yields, has also significantly increased the fund's funding level. This combination of rising assets and falling liabilities has led to a substantial spike in the overall funding level.
While the fund is currently 138% funded, it is important to note that this figure represents the projected outcome over the entire life of the fund, assuming all actuarial assumptions hold true. It does not mean the fund has 138 pounds of assets for every 100 pounds of liabilities today.
The fund's strategic asset allocation is diversified across nine categories, with listed equity forming the largest portion at 45%. Other significant allocations include government bonds and multi-asset credit at 27%, illiquid markets at 26%, and private debt at 7%.¹
Looking ahead, the Hackney Pension Fund anticipates challenges in maintaining its strong funding level. Key risks include the potential for market downfalls that could pressurise the fund and its employers. Preserving the current strong funding position and minimising exposure to these market fluctuations are key priorities.
¹ The fund's strategic asset allocation includes 45% listed equity, 27% government bonds and multi-asset credit, 26% illiquid markets, and 7% private debt. This is further broken down into 24.0% global active equity, 13.0% global passive equity, 5.0% emerging market equity, 3.0% UK equity, 5.0% multi-asset credit, 17.0% government bonds, 7.0% private debt, 12.0% property, 5.0% renewable infrastructure, 5.0% nature-based solutions, and 4.0% local investment. See full breakdown in the Public reports pack.
