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

Pension Fund External Audit Plan 2025/26

The committee was scheduled to receive a presentation from EY, the Fund's external auditor, regarding their plan for auditing the 2025/26 accounts. This plan outlines proposed materiality limits and estimated fees for the audit. The report detailed the audit regulations and the timeline for the audit work, including the planned completion of substantive testing and the issuance of the Audit Results Report. The proposed audit fees for 2025/26 were also presented, noting an increase due to the inclusion of work related to the 2025 triennial valuation process.

Update to Responsible Investment

A key item on the agenda was an update on the progress of amending the Fund's Responsible Investment (RI) beliefs, in line with legal requirements. The report included an analysis of the likely 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 to gather views on environmental, social, and governance (ESG) issues, climate change, stewardship priorities, and 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 the Minister of State for Local Government and Homelessness's guidance 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 initiative, which aims to ensure effective investment of Local Government Pension Scheme (LGPS)² 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 to the pool. The report outlined 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 is a mandatory statutory role introduced to strengthen governance and accountability. The committee was also to consider the appointment of an independent person to support pension fund governance, though the final appointment was to be deferred pending further statutory guidance.

Quarterly Investment Performance - 2025/26 Q4

The committee was scheduled to review the Pension Fund's investment performance for the quarter ending 31 March 2026. The report provided a comparison of the Fund's performance against its customised benchmark and the Local Authority average return, as well as against individual manager benchmarks. The report detailed the performance of equity, bond, multi-asset credit, commercial property, infrastructure, private equity, and private debt managers. It noted that all equity and bond managers delivered negative absolute returns for the quarter, and highlighted the underperformance of several active equity managers. The report also addressed the Fund's cashflow management and the impact of currency hedging on overall performance.

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. The details of this report were not publicly available as it was likely to be discussed in a private session.