This meeting of the Pension Fund Committee will receive an update on the administration of the Fund and hear about the City of Westminster Pension Fund's (CoWPF) current and forecasted financial position. The Committee will also consider the Fund's exposure to Israel and the occupied Palestinian territories, as well as receiving an update on investment performance. The Committee are also scheduled to discuss whether to appoint an independent advisor for the Fund.

Exposure to Israel and the Occupied Territories

Following a motion submitted by UNISON, the Committee will receive an update on the Fund's exposure to Israel and the occupied Palestinian Territories, alongside a report from Isio on the Fund's current approach to investing in these regions. In December, the Committee were informed that the Fund's total exposure to assets in these regions amounted to just over £10 million. The Committee will consider the option of maintaining their current approach, investigating alternative methods of engagement or the possibility of divestment.

On balance of the considerations within their report, it is the view of Isio that they do not believe any material change in the Fund’s current approach is needed.

The Committee will consider whether any further action is needed.

Pension Fund Administration Update

The Committee will receive an update on the performance of Hampshire Pension Services, the Fund administrators. The report will include information about how HPS has performed against the Key Performance Indicators (KPIs) as set out in the Fund's Pension Administration Strategy. The Committee are also scheduled to discuss the Fund’s exposure to overseas pensioners and whether the data provided by the schools in the Fund is of an acceptable quality.

Responsible Investment Statement

The Committee are scheduled to receive the 2025 Responsible Investment Statement. The report will set out how the Fund integrates environmental, social and governance factors as part of its investment strategy. The Committee will be asked to delegate authority to publish the statement on the Council website.

Fund Financial Management

This report will summarise the Pension Fund's current and forecasted financial position. The report contains analysis of the Fund's top five risks, with the Mansion House reforms remaining as the highest risk.

At the Mansion House Speech on 14 November 2024, the Chancellor proposed a number of reforms to the Local Government Pension Scheme (LGPS).

In particular the report highlights concerns about the consultation on asset pooling that could result in a shift of responsibility to the pools.

It is suggested that funds will not have the ability to allocate their listed equity allocation between passive and active, however this forms a key part of risk management and forms a fundamental part of the strategy of a fund.

Performance of the Council’s Pension Fund

This report will provide an update on the Fund's performance and a review of the London CIV, the Fund's pool provider. The report shows that at 31 December 2024 the market value of the Fund was £2.124 billion, and that during the last quarter of 2024 the fund returned 2.4%. The Committee are also scheduled to receive an update on the recent changes at the London CIV, including the appointment of the new Chief Investment Officer, Jenny Buck.

LGPS Projects & Governance Update

The Committee will receive an update on the Guaranteed Minimum Pension (GMP) Project, McCloud and the Pensions Dashboard Programme (PDP). The Committee are also scheduled to hear an update on the development of the Pension Fund's website.

Independent Advisor Appointment

The Committee will discuss whether to appoint an independent advisor to the Fund, following a recommendation made in the recent Local Government Pension Scheme (England and Wales): Fit for the Future consultation.

It is the view of officers that the appointment of an individual independent advisor would offer a further, enhanced level of advice, best ideas, investment strategy direction and governance refinement that would improve the Pension Fund Committee’s decision-making processes.

The advisor would assist the Committee in making decisions on investment strategy and help to scrutinise the work of the London CIV. The report includes a proposed role profile, cost and work programme for the advisor.