The Lambeth Council Pensions Committee is scheduled to meet on 5 November 2025 to discuss the fund's performance, risk management, and strategic planning. The committee will review the investment performance, consider an update to the funding strategy, and discuss the draft annual report. Members will also receive a general update on various pension-related matters.

Investment Performance and Strategy

The committee will be provided with an Investment Performance Report for the quarter ending 30 June 2025. The report, prepared by Mercer, will summarise fund managers' performance and provide updates on the implementation of the agreed investment strategy. The report pack states that for the quarter ending 30 June 2025, the Fund outperformed the benchmark by 0.1% with a return of 3.4%, driven by above-benchmark performance in global equity and emerging market equity funds. However, performance over the one, three, and five-year timeframes fell short of the respective benchmarks. The report pack also notes that the actuary's estimated funding level as at 30 June 2025 stood at 127%. The committee will also discuss an Investment Strategy Update, and the report pack states that as at 30 June 2025, the fund's asset allocation was most notably overweight to multi asset credit and global equity, and most notably underweight to private equity and private debt.

Actuarial Valuation and Funding Strategy

The committee will consider an update on the Actuarial Valuation and Funding Strategy Statement. The report pack includes a draft Funding Strategy Statement, and states that the fund's funding level as at 31 March 2025 is 120%, compared to 96% as at the previous valuation date of 31 March 2022. The report pack notes that although the funding level has improved, this is a single metric at a single point in time based on several assumptions about future events.

Risk Management

The committee will review the Lambeth Pension Fund Risk Register. The report pack states that the risk register is reviewed regularly to ensure that any new and emerging risks are identified, and captured on the risk register, together with appropriate mitigations and management. The report pack notes that changes have been made to the descriptions of the causes and impacts of risks PA18 Insufficient attention to environmental, social and corporate governance (ESG) risks and PA20 – Poor stewardship practices lead to financial, legal and/or reputational damage in response to feedback from the Pensions Committee to directly reference the conflict in the Occupied Palestinian Territories.

Draft Annual Report

The committee will discuss the Draft Annual Report 2024-25, which includes the draft 2024/25 statement of accounts. The report pack states that the accounts have been prepared in accordance with the Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice on Local Authority Accounting in the United Kingdom 2024/25, and related guidance. The report pack also notes that the external auditors Mazars have yet to formally begin their audit of the accounts.

General Updates

The committee will receive a General Update, which will include updates on the London CIV, the Pension Schemes Bill, and the governance review. The report pack notes that the Palestine Solidarity Campaign (PSC) issued a letter and position paper to the Fund setting out their concerns regarding what they consider to be the unlawful use of the LGPS as a vehicle through which the UK invests in companies involved in aiding or assisting in the commission of serious breaches of international law . The report pack also includes a list of suggested training and events for committee members.