The Pensions Committee of Hillingdon Council was scheduled to discuss the administration of the Hillingdon Pension Fund, its investment strategy, and responsible investment policies. The meeting's agenda also included a review of the fund's risk register and governance arrangements.

Administration Report

The committee was scheduled to receive an update on the administration of the Hillingdon Pension Fund, which is delivered in partnership with Hampshire County Council. The report was expected to detail performance against agreed Key Performance Indicators (KPIs), including Service Level Agreement (SLA) compliance, membership growth, and casework processing times. It was also to provide an update on the implementation of the McCloud remedy and the progress of the Pensions Dashboard programme.

Investment Strategy and Fund Manager Performance - Part 1

This agenda item was set to cover the fund's investment strategy and the performance of its fund managers. The report pack indicated a discussion on the funding level, which had decreased to 114% from 118% at the previous valuation, resulting in a surplus of £190 million. The report was expected to detail investment performance for the quarter ending 31 March 2026, noting a fund return of -1.4%, underperforming its benchmark by 1.5%. Market conditions, including geopolitical tensions and rising inflation, were anticipated to be discussed as factors influencing performance. The report was also to outline asset allocation, with Global Equities and Property noted as being overweight against strategic targets.

Responsible Investment

The committee was scheduled to review the Responsible Investment Policy and receive an update on how fund managers are embedding Environmental, Social, and Governance (ESG) factors into their investment processes. The report was to detail proxy voting activity by LGIM and London CIV managers, highlighting director elections as the most common category of shareholder resolutions. Updates on the work of LGIM and the London Pensions Administrators and Fund Forum (LAPFF) in supporting business decarbonisation and net-zero objectives were also anticipated.

Risk Register Report

The committee was to consider the Pension Fund's Risk Register, which identifies key risks and associated mitigation measures. The report was expected to detail both open and closed risks, with seven risks closed and seven remaining open and actively managed. A particular focus was to be placed on the Fit for the Future legislation, which was noted as a significant risk due to its pending parliamentary approval. The report was also to address concerns regarding potential changes in council administrations and their impact on investment approaches.

Governance

This agenda item was scheduled to cover the committee's workplan, governance updates, and the approval of various policy updates. The report was to detail the revised workplan, future meeting dates, and updates on continuous professional development for committee members. It was also to confirm compliance with the General Code of Practice and present the draft Pension Fund Annual Report for 2024/25, including audited accounts.

The meeting also included items for discussion in private session, concerning restricted minutes and further details on investment strategy and Fit for the Future updates.