The Pension Committee of Camden Council met on Wednesday, 18 March 2026, to discuss the Fund's Responsible Investment Policy, Corporate Governance Annual Review, and the Triennial Valuation. Key decisions included the approval of the Responsible Investment Policy and the Funding Strategy Statement, and the agreement for the Council to prepay its secondary contributions.

Responsible Investment Policy

The Committee approved the final draft Responsible Investment (RI) Policy for the Camden Pension Fund. This policy aims to integrate Environmental, Social, and Governance (ESG) factors into investment decisions, with a particular focus on fiduciary duty and financial materiality. The policy formalises governance, monitoring, and escalation processes, prioritising engagement and stewardship over exclusions. It also establishes a structured framework for identifying and managing risks in conflict-affected and high-risk areas. The policy will be subject to formal consultation and will be brought back to the Committee for final approval in March 2026.

Corporate Governance Annual Review

The Committee noted the review of the Pension Fund's proxy voting activity for the year ending 31st December 2025. The report, prepared by Pensions & Investment Research Consultants Ltd (PIRC), detailed the voting outcomes across various resolutions and regions. The Committee approved the proposed voting policy template for 2026, which sets out the fund's stance on issues such as director elections, remuneration, and shareholder resolutions. Notably, the fund voted against a significant number of resolutions in the US and Canada due to concerns over corporate governance standards, executive pay, and board independence.

Engagement Report

The Committee noted the Engagement Report, which detailed the stewardship activities undertaken by the Fund and the Local Authority Pension Fund Forum (LAPFF) since the last meeting. Key engagement themes included strengthening shareholder oversight of climate transition plans, decarbonisation in hard-to-abate sectors, water stewardship, human rights in conflict-affected areas, employment rights reform, supply chain due diligence in the electric vehicle sector, and executive remuneration. The report highlighted a particular focus on human rights and conflict-affected areas, reflecting increasing investor scrutiny in these contexts.

Performance Report

The Committee noted the Pension Fund's performance report for the quarter ending 31 December 2025. The fund's value increased to £2.42 billion, with positive returns driven by global equities and multi-asset credit mandates. However, some mandates, including Baillie Gifford's Paris-Aligned fund and Partners Group's private markets exposure, were noted as underperforming. The report also detailed the risk-reward ratio of individual mandates, with CBRE demonstrating the strongest performance.

London Collective Investment Vehicle (CIV) Progress Report

The Committee received an update on the progress of the London CIV, noting the disinvestment from legacy mandates and initial investments into the LCIV Global Equity Value Fund. The transition of the CBRE property mandate into the LCIV structure was also discussed, aiming for a 100% pooling ratio by the end of March. The report highlighted cost savings achieved through these transitions and confirmed the admission of Buckinghamshire Pension Fund to the LCIV.

Climate Analytics as at 31 March 2025

The Committee noted the Climate Analytics report, which provided metrics for the Fund's public market mandates, an update on fossil fuel exposure, and implied temperature alignment. The report indicated that the Fund's public market portfolio was less emissions-intensive than the MSCI ACWI benchmark. Challenges in obtaining comprehensive emissions data for private market investments were acknowledged.

Cash Flow and Membership Report (2024-25)

The Committee noted the report detailing the Pension Fund's cash flow and membership statistics for the financial year 2024-25. The fund's cash flow position was reported as strong, with robust contributions, stabilised transfer activity, and continued growth in investment income. Total membership increased, driven by active members, while pensioner numbers also saw significant growth.

Funding Strategy Statement

The Committee considered revisions to the Funding Strategy Statement (FSS), which outlines how scheme employers' liabilities are measured and funded. Following consultation with employers and the Department for Education, minor drafting amendments were made to enhance clarity. The Committee approved the Funding Strategy Statement, effective from 1 April 2026.

Business Plan

The Committee noted the Business Plan, which outlined scheduled agenda items for future meetings, training opportunities, and a record of attended events. Members were encouraged to participate in ongoing training to maintain knowledge and skills.

Triennial Valuation - Employer Results

The Committee agreed to the draft Triennial Valuation as at 31 March 2025, which includes the contribution rates set for the years 2026/27 to 2028/29. The valuation showed an improved funding level of 136% and a reduction in average employer contribution rates.

Prepayment of Secondary Contributions

The Committee agreed to the Council's proposal to prepay its secondary contributions early for the years 2026-2029. This prepayment, amounting to £39.604 million on 1 April 2026, will result in a saving of approximately £3.389 million for the Council due to the fund's assumed investment return.

Deputation

A deputation from Caroline Michie, representing Camden Friends of Palestine, Camden PSC, and CADFA, was received regarding the Fund's investments in companies involved in the Israeli occupation and military assault on the West Bank and Gaza. The deputees expressed concerns about the delay in implementing the Responsible Investment and Conflict Zone Exposure Policy, the methodology and transparency of the audit on Israel/OPT linked exposure, and the perceived weakness of the policy's criteria for exclusions. They called for immediate divestment from companies complicit in human rights violations. Officers responded by explaining the fund's fiduciary duty, the robust and evidence-based approach to policy development, and the distinction between controversial weapons and the broader defence sector. They also clarified the methodology used for the audit and the rationale behind the fund's engagement strategy.

The meeting concluded with the Chair thanking members and officers for their service.