The Pensions Committee of Hackney Council met on Monday 27 July 2026 to approve minutes from previous meetings and to receive training and updates on investment strategy, responsible investment, and stewardship. Key discussions included the implications of the Fit for the Future reforms for the Local Government Pension Scheme (LGPS), the role of London CIV as the investment pool, and the committee's approach to responsible investment and stewardship.

Minutes of Previous Meetings

The committee resolved to approve the unrestricted minutes of the previous Pensions Committee meeting held on 24 June 2026, and to note the unrestricted minutes of the Pensions Board meeting held on 26 March 2026. The restricted minutes of the previous Pensions Committee meeting held on 24 June 2026 and the restricted minutes of the Pensions Board meeting held on 26 March 2026 were also noted.

Introduction to London CIV and Fit for the Future Reforms

The committee received a comprehensive introduction to London CIV, the investment pool for London and Buckinghamshire local authorities, and the implications of the Fit for the Future reforms for the LGPS. Miriam Adams, Assistant Director for Pension Fund Investment and Governance and Administration, and Jenny Buck, Chief Investment Officer at London CIV, explained that these reforms, which came into force on 30 June 2026, mandate that all LGPS assets must be managed through FCA-regulated pooling companies. London CIV will now be the primary source of investment advice and will be responsible for the implementation of investment strategies, including portfolio design, manager oversight, and responsible investment. Partner Funds, such as Hackney, will retain responsibility for setting the overall investment strategy, high-level strategic asset allocation, and responsible investment policy.

The committee was informed that the Fit for the Future reforms aim to achieve greater scale, cost efficiency, and access to a broader range of investment opportunities. The reforms also introduce stronger governance standards and a greater focus on UK and local investment. The presentation detailed the new roles and responsibilities, with Partner Funds focusing on strategic decisions and London CIV on implementation.

Responsible Investment and the RI Matrix

Jenny Buck and Wazul Moha from London CIV presented on the organisation's approach to responsible investment (RI). They explained that while Partner Funds set their own RI strategies, London CIV provides investment solutions and an implementation framework. The committee discussed the government's view on RI decision-making, which emphasizes that decisions on boycotts, divestment, and sanctions are matters of UK foreign policy and not for individual LGPS funds.

London CIV has developed an RI Matrix in consultation with Partner Funds, offering a tiered approach to exclusions. Pillar 1 includes exclusions for controversial weapons and non-conventional fossil fuel extraction. Pillar 2 adds exclusions for areas such as gambling and tobacco, as well as companies flagged by MSCI for controversies. Pillar 3 includes exclusions for weapons exceeding a 5% revenue threshold and companies identified on a UN list for operating in occupied territories. The committee raised questions about the potential legal basis of government advice and how the RI Matrix aligns with these directives, particularly concerning the exclusion of specific countries or sectors.

Local Investment

The committee also received an update on local investment. It was noted that the Investment Strategy Statement has a target allocation of 3% to 5% for local investment, with at least 50% of the benefits from these investments needing to have an impact on the borough. Areas of focus include housing, regeneration, infrastructure, clean energy, and supporting small and medium-sized enterprises. The challenges of defining local and ensuring investments are financially viable and scalable were discussed.

Training: Investment Strategy and Asset Allocation

Sam Yendall from Gallagher, the investment advisor, provided training on the investment strategy and asset allocation. He explained the long-term nature of LGPS liabilities and the importance of bridging the gap between contributions and pension payouts through investments. The committee was updated on the fund's strong funding level, which has seen an upward trajectory due to strong asset performance and a decrease in liabilities resulting from changes in long-term interest rates.

The training covered the key levers for the committee, including return, risk, cash flow, local, and responsible investments. The discussion included the fund's discount rate of 6.4% per annum and the Value at Risk metric, which quantifies potential losses in a 1 in 20 downside scenario. The committee also discussed the fund's progress against climate targets, noting a 30.3% reduction in Scope 1 and 2 carbon footprint from 2023-2025, and the ongoing work to meet a 50% reduction target by 2030. The complexities of Scope 3 emissions data were also acknowledged.

A detailed overview of the nine asset class buckets within the Fit for the Future guidance was provided, including listed equity, private equity, private credit, property, infrastructure, other alternatives, credit, and government bonds. The current Strategic Asset Allocation (SAA) was presented, with listed equity representing 45% of the SAA.

Training: Introduction to Stewardship

David Crum and Thomas Bolger from Minerva Analytics led a training session on stewardship. They explained that stewardship is about the responsible allocation, management, and oversight of capital to create long-term sustainable value. The committee's role in setting the Responsible Investment (RI) policy and expectations was highlighted, with London CIV and investment managers responsible for implementation through voting and engagement.

The session covered how ESG factors are integrated into investment decisions and stewardship activities, emphasizing that ESG issues are a source of information that can impact long-term financial performance and are linked to fiduciary duty. The training detailed how voting and engagement work, particularly for listed equities, and the challenges of applying stewardship to other asset classes such as private markets and government debt. The importance of evidence-based stewardship, joining up voting and engagement, and monitoring stewardship approaches over the long term was stressed. The committee also discussed the potential for collaboration with other asset stewards to amplify influence and achieve cost efficiencies.

Exclusion of Press and Public

The committee resolved to exclude the press and public from the proceedings for agenda items 11 to 13, which concerned the consideration of exempt minutes and urgent restricted business. However, it was agreed that the restricted minutes for noting would be considered in the public session.