The Investment Committee of Kensington and Chelsea Council was scheduled to discuss the triennial actuarial valuation of the pension fund and an update to the fund's Investment Strategy Statement. The meeting's agenda also included a review of fund manager benchmarks and the London Collective Investment Vehicle (LCIV) Investment Management Agreement.

Actuarial Valuation Update

The committee was scheduled to review and potentially approve employer contribution rates and the Funding Strategy Statement (FSS) as part of the 2025 triennial actuarial valuation. This valuation, conducted by Hymans Robertson LLP, assesses the assets and liabilities of the Royal Borough of Kensington and Chelsea Pension Fund. The report detailed draft contribution rates and provided an analysis of the actuary's results, including risks and qualitative considerations. The Funding Strategy Statement itself outlines the objectives for managing the fund, including securing long-term solvency, using a balanced investment strategy, and aiming for stable employer contribution rates. It also details how the fund calculates employer contributions, considering factors such as target funding levels, time horizons, and the likelihood of success in meeting funding targets. The statement also covers procedures for when employers join or leave the fund, and how surpluses and deficits are managed.

Investment Strategy Statement Update

The committee was also set to review and approve an updated Investment Strategy Statement (ISS) for the Royal Borough of Kensington and Chelsea Pension Fund. This statement, prepared in accordance with the Local Government Pension Scheme (LGPS) legislation, details the council's investment policy, risk management approach, pooling strategies, and its policy on environmental, social, and governance (ESG) considerations. The update reflects a decision to transition active equity to a passive equity portfolio and to allocate up to 5% of assets to Temporary Accommodation, funded by the sale of index-linked gilts. The ISS outlines the committee's investment beliefs and overarching principles, including a commitment to investing in a wide range of instruments, assessing the suitability of investments based on prospective return, risk, and ESG criteria, and managing various risks such as geopolitical, currency, manager, solvency, and liquidity risks. The statement also details the fund's approach to pooling investments through the London Collective Investment Vehicle (LCIV) and its policy on responsible ownership, including the exercise of voting rights.