Hampshire Pension Fund has launched a consultation on its draft Investment Strategy Statement (ISS), setting out its investment priorities and responsible investment approach for the coming years.

The fund, which manages the Local Government Pension Scheme (LGPS) assets for around 400 employers and more than 200,000 members, said stakeholders are being invited to comment on the strategy before the consultation closes on 2 August 2026.

The draft ISS outlines the fund's investment objectives, asset allocation, approach to risk management and consideration of environmental, social and governance (ESG) factors.

It has been developed by the Hampshire Pension Fund Joint Pension Fund Panel and Board following advice from the fund's actuary, Hymans Robertson, and investment consultant.

According to the draft strategy, the fund's three main aims are to ensure sufficient resources are available to meet liabilities as they fall due, keep employer contribution rates as stable as possible without taking undue risk, and seek investment returns within reasonable risk parameters.

The fund said its actuary advised that assets must deliver a long-term return above the 5.9 per cent discount rate to meet funding requirements.

Under the proposed strategic asset allocation, the fund would maintain a strong focus on growth assets, including a combined 31 per cent allocation to active and passive equities and a further 7.5 per cent allocation to private equity.

The strategy also includes allocations to private debt, infrastructure, property, timber and government bonds.

The draft ISS also reflects the government's 'Fit for the Future' reforms.

Under the draft strategy, responsibility for implementing the fund's investment strategy and managing its investments would rest with LGPS Central (LGPSC), and the document states that this arrangement began on 1 April 2026.

Meanwhile, Hampshire Pension Fund reaffirmed its commitment to responsible investment, highlighting climate change, labour practices, human rights and good governance as key priorities.

The fund also confirmed it will continue working towards disinvesting from fossil fuel investments while maintaining its target of achieving net zero emissions by 2050.

In addition, the fund aims to allocate more than 11.5 per cent of its overall assets to private market investments that deliver positive environmental or social impacts, while continuing to meet its investment return objectives.

The draft strategy also sets a long-term target of allocating between 3 and 5 per cent of assets to local investments, including investments within Hampshire and the Solent Combined County Authority area, as well as the wider LGPSC region.

The fund said these investments should support the local economy, contribute towards its net-zero ambitions and generate positive social outcomes.

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