The Joint Pensions Committee meeting on Monday 8 June 2026 was scheduled to discuss the Pension Fund's external audit plan, updates on responsible investment policies, and progress on Fit for the Future regulations. The committee was also set to review quarterly investment performance and consider a proposal to expand the Pensions Shared Service.

Pension Fund External Audit Plan 2025/26

The committee was scheduled to receive a presentation from EY, the Pension Fund's external auditor, regarding their plan for the 2025/26 audit. This plan outlines the proposed materiality limits for the committee's acceptance and the estimated fees for the audit work. The report detailed the audit strategy, including key risks, materiality levels, and the audit timeline. EY's plan also addressed the challenges faced in recent years with meeting statutory deadlines for auditing council accounts and the extended deadlines in place until the 2027/28 accounts.

Update to Responsible Investment

A key item on the agenda was an update on the progress of amending the Pension Fund's Responsible Investment (RI) beliefs, following new legal requirements. The report included information on the potential financial impact of different options offered by London CIV¹ and a draft stakeholder consultation. The committee was recommended to approve the launch of a scheme member survey on responsible investment, with delegated authority to the Director of Financial Services and the Chair to finalise the survey's wording and delivery approach. The survey aims to gather views from members on environmental, social, and governance (ESG) issues, climate change, stewardship priorities, and ethical considerations. Mercer's analysis, commissioned by the Fund, indicated that the adoption of London CIV's proposed Matrix Pillars exclusions was unlikely to result in significant long-term financial detriment, though modest short-to-medium term performance deviations were anticipated. The report also noted government guidance stating that decisions on boycotts, divestment, and sanctions are matters for central government, not local authorities. A deputation from UNISON was also scheduled to speak on this item, focusing on union views on the stakeholder survey.

Update on Fit for the Future

The committee was to receive an update on the progress of Fit for the Future initiatives, which aim to ensure effective investment of Local Government Pension Scheme (LGPS)² assets through regional pooling. The Pension Schemes Bill, passed on 28 April 2026, provides the legal framework for these changes, including the requirement for all LGPS funds to invest via a pool and the transfer of detailed investment decisions to these pools. The report detailed the draft implementation plan from London CIV and proposed the appointment of the Director of Financial Services, Paul Guilliotti, as the Senior Responsible Officer (SRO) for the Pension Fund. This role is a mandatory statutory position designed to strengthen governance and strategic leadership. The committee was also to consider the appointment of an independent person to support pension fund governance, although the report recommended deferring this appointment pending the publication of revised statutory guidance.

Quarterly Investment Performance

The committee was scheduled to review the Pension Fund's investment performance for the quarter ending 31 March 2026. The report provided a summary of the Fund's performance against its custom benchmark and the broader LGPS peer group, as well as performance against individual manager benchmarks. The report highlighted that all equity, bond, and multi-asset credit managers delivered negative absolute returns for the quarter, although equity and bond benchmarks were also negative. Property, infrastructure, private equity, and private debt managers generally showed positive returns, with the exception of Schroders' property fund, which had its trading suspended. The report also detailed the Fund's total value and asset allocation, noting that the sale of equities and purchase of index-linked gilts, approved at the previous meeting, were completed in April and would be reflected in the next reporting period. The report also discussed currency hedging and its impact on the Fund's value.

Proposal to Expand the Pensions Shared Service

The committee was to consider a report from the Executive Director of Finance regarding a proposal to expand the Pensions Shared Service. No further details on this proposal were publicly available in the provided documents.