The Pensions Committee of Islington Council met on Monday 16 March 2026 to review the performance of the Pension Fund, discuss updates to the investment strategy, and consider the results of a consultation on the draft Funding Strategy Statement. The committee was also scheduled to receive an update on the LGPS 'Fit for the Future' reforms.

Pension Fund Performance - October to December 2025

The committee was scheduled to review the performance of the Pension Fund for the period of October to December 2025. This included noting the performance of various fund managers and their respective asset allocations, as detailed in the BNY Mellon interactive performance report. A presentation from Apex, the independent investment advisers, on the fund managers' quarterly performance was also scheduled. The report provided a breakdown of the performance of individual fund managers across different asset classes, including equities, property, private debt, and infrastructure. It highlighted specific funds such as the LCIV RBC Sustainability Exclusion Fund, LCIV Newton Investment Management, and The Legal and General Paris Aligned ESG Passive Index, detailing their returns against benchmarks and any underperformance. The report also included updates on specific property portfolios managed by Aviva and Columbia Threadneedle, as well as details on Franklin Templeton's private real estate funds. Infrastructure investments with Quinbrook and Pantheon were also reviewed, alongside updates on Permira, Churchill, and Crescent's private debt mandates.

Investment Strategy Update and Review

The committee was scheduled to receive an update on the progress made in implementing the current investment strategy. This included a review of the strategic asset allocation, with proposals for alternative strategic asset allocation options presented by Mercer. The committee was asked to consider these options and agree on a preferred proposal, with delegated authority requested for officers to commence the next steps of implementation. The report also noted changes to the PIRC Voting guidelines for 2026 and proposed receiving a further progress report at the next meeting. The report detailed the current and proposed strategic asset allocations, highlighting shifts in percentages across asset classes such as Public Equity, Private Equity, Infrastructure, Property, Private Debt, Multi-Asset Credit, Index Linked Gilts, and Corporate Bonds.

2025 Actuarial Valuation - Draft Funding Strategy Statement Consultation Results

The committee was scheduled to consider the draft Funding Strategy Statement (FSS) prepared for the 2025 actuarial valuation. This statement outlines the funding strategy for the Islington Council Pension Fund, in accordance with the Local Government Pension Scheme Regulations 2013. The report included a summary of key changes to the FSS and noted the employer comments received from the consultation exercise. The committee was asked to agree to delegate authority to the Section 151 Officer and Fund Actuary to finalise any agreed amendments and regulatory changes, and to publish the final FSS by 31 March 2026. The report detailed the key funding parameters and assumptions, including real discount rates, the surplus reserve policy, and deficit recovery plans. It also outlined updates to wider policies, including Asset Share, Academies/MATs, Admission and Termination policies, and Employer Risk policies.

LGPS Fit for the Future Draft Guidance

The committee was scheduled to be updated on the government's LGPS 'Fit for the Future' reforms, following the May 2025 consultation response and the publication of draft 2026 Regulations and statutory guidance. The report noted the draft guidance on Fund Governance, Investment Strategy Statement (ISS), and Asset Pooling. Key areas covered in the draft guidance included knowledge and understanding requirements for those involved in LGPS management, the role of the Senior LGPS Officer, the appointment of an Independent Person, and the process for Independent Governance Reviews (IGRs). The draft ISS guidance outlined mandatory core investment objectives and requirements for strategic asset allocation, responsible investment, and local investment. The draft Pooling Guidance detailed requirements for asset pool companies, asset management responsibilities, reporting, and governance, along with the Secretary of State's powers to direct AAs and pools.

Pensions Committee 2026/27 Forward Work Programme

The committee was scheduled to review the Forward Work Programme for the Pensions Committee, outlining agenda items for forthcoming meetings and training topics for committee members. This included noting the attached Appendix A, agreeing to make amendments where priorities have changed, and reviewing any training requirements. The forward plan included standing items on performance reports and LCIV updates, with specific agenda items for the March meeting covering the actuarial valuation report, draft FSS consultation, 'Fit for the Future' draft guidance, and the Investment Strategy Update. Future agenda items included carbon monitoring, governance reports, transition plans to LCIV, business plans, annual reports, training policies, and risk registers. The report also highlighted the importance of ongoing training for committee members to ensure sufficient knowledge of the LGPS, pension benefits, and investment issues.