The Joint Pensions Committee met on Monday 8 June 2026 to discuss the Pension Fund's external audit plan, updates on responsible investment, and progress on Fit for the Future reforms. The meeting also included a review of the Pension Fund's investment performance and 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 and areas of focus, such as the valuation of hard-to-value investments and the disclosure requirements under IAS26. Materiality for the audit was set at £31.5 million, with a reporting threshold for uncorrected misstatements of £1.5 million. The audit fees for 2025/26 were also presented, noting an increase due to the inclusion of the 2025 triennial valuation process.

Update to Responsible Investment

An update was provided on the progress of amending the Fund's Responsible Investment (RI) beliefs, following legal requirements. The report included an analysis of the likely financial impact of different options offered by London CIV, the pooled investment vehicle for Local Government Pension Schemes (LGPS) in London. A key recommendation was to approve the launch of a structured survey for scheme members to gather their views on environmental, social, and governance (ESG) issues, climate change, stewardship priorities, and broader ethical considerations. This survey aims to inform the development of the Fund's RI Strategy and Investment Strategy Statement (ISS). Mercer had previously conducted an independent financial impact and risk assessment of potential responsible investment exclusions, concluding that there was unlikely to be a significant financial detriment to the Fund. The report also noted that the Minister of State for Local Government and Homelessness had stated that decisions on boycotts, divestment, and sanctions are matters for central government.

Update on Fit for the Future

The committee was to receive an update on the Fit for the Future reforms, which aim to ensure effective investment of LGPS assets by requiring individual funds to invest via a pool. The Pension Schemes Bill, passed on 28 April 2026, provides the legal framework for these changes, including the transfer of detailed investment decisions and advice to the pool. The report detailed the progress on the London CIV's draft implementation plan 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 requirement 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 final appointment was to be deferred pending further statutory guidance.

Quarterly Investment Performance - 2025/26 Q4

The committee was presented with a report summarising the Pension Fund's investment performance for the quarter ending 31 March 2026. The report detailed the whole Fund's performance against its customised benchmark and the Local Authority average, as well as individual investment manager performance against their respective benchmarks. The overall Fund performance for the quarter was -4.3%, compared to a benchmark of -0.9%. The report highlighted that all equity, bond, and Multi-Asset Credit (MAC) managers delivered negative absolute returns during the quarter, with equity investments representing 59.1% of the Fund. The performance of active equity managers was noted as being below their benchmarks, with specific concerns raised about stock and sector selection by LCIV Global Equity Focus and LCIV Global Alpha Growth funds. The report also detailed the performance of commercial property, infrastructure, private equity, and private debt managers, noting the ongoing suspension of trading in the Schroders UK Real Estate Fund (SCREF) due to redemption requests. The current whole Fund value and asset allocation were also presented, showing an overweight position in equities and a need to adjust allocations to meet targets.

Proposal to Expand the Pensions Shared Service

The committee was scheduled to consider a report from the Executive Director of Finance regarding a proposal to expand the Pensions Shared Service. Further details on this proposal were not publicly available in the provided documents.

The meeting also included the confirmation of the minutes from the previous meeting held on 10 March 2026 and the declaration of any disclosable pecuniary interests. A resolution was to be considered for the exclusion of the press and public for agenda item 8, concerning the proposal to expand the Pensions Shared Service, due to the likely disclosure of exempt information.