The Joint Pensions Committee met on Wednesday 16 September 2026 to discuss the Pension Fund's draft accounts for the 2025/26 financial year, an update on responsible investment policies, and the quarterly investment performance. The committee approved the draft accounts, noting that an unqualified audit opinion was anticipated, and agreed to proceed with a member survey on responsible investment.

Pension Fund External Audit Report 2025/26

The committee received the draft Audit Results Report from EY, the Pension Fund's external auditors, for the 2025/26 financial year. EY indicated they anticipated issuing an unqualified audit opinion, subject to the satisfactory resolution of a few outstanding items. These included a £3 million valuation difference on one investment managed by Schroders, and a difference in valuation for a private asset manager, both of which were expected to be below materiality. EY also identified errors in the classification of cashflow data provided to the actuary for the IAS 26 disclosures, which officers were working to rectify. The auditors confirmed that there were no matters to bring to the committee's attention regarding fraud or management override of controls. The committee was recommended to note the draft report, approve the published statement of accounts subject to the satisfactory resolution of outstanding issues, and authorise the Chair to sign the accounts and Letter of Representation.

Update to Responsible Investment

The committee considered an update on the Fund's approach to responsible investment, including the proposed launch of a scheme member survey. The survey aims to gather views on environmental, social, and governance (ESG) issues to inform the development of the Fund's Responsible Investment Strategy. Amendments to the survey wording were discussed, focusing on clarifying the defined benefit nature of the scheme and the distinction between employer and individual member contributions. The committee also noted correspondence from UK Lawyers for Israel (UKLFI) raising concerns about the methodology of Mercer's analysis on investment exclusions and the wording of the survey. Mercer's response indicated that the issues raised did not alter their previous conclusions, but recommended the Fund liaise with London CIV regarding the validity of the UN OHCHR list. The committee was recommended to agree the revisions to the survey, note the correspondence and Mercer's response, and that Mercer representatives would be available to answer questions.

Pension Fund Annual Report 2025/26

The committee received the Pension Fund Annual Report for 2025/26. The report detailed the Fund's financial performance, governance, administration, and actuarial position. It highlighted that the Fund was 121% funded as of the 31 March 2025 valuation, an improvement from the previous valuation. The report also noted that the average employer's primary contribution rate would decrease from 20.0% to 15.8% from April 2026. The committee was recommended to approve the report for publication.

General Matters

Updates were provided on the appointment of an independent person to support pension fund governance, as required by new regulations. The role is intended to provide independent scrutiny and challenge to the committee, senior officers, and the asset pool. The committee was recommended to approve the process for appointing this independent person and the person specification for the role. An update on the committee's training plan was also noted, with members required to complete online training by December 2026. The Local Pension Board Chair's report for 2025/26 was also received, noting no concerns with compliance.

Local Investment Strategy

The committee considered the Fund's approach to local investment, a new requirement under recent amendments to the Local Government Pension Scheme Investment Regulations. A strategic objective of up to 5% of Fund assets over the long term was proposed, with a secondary target of 2% covering the immediate pool area, subject to the availability of suitable opportunities, fiduciary considerations, and value for money. The proposed target area includes Greater London, the wider LCIV pool area, and the South East of England. The committee was recommended to approve this strategic approach and the proposed wording for inclusion in the Fund's Investment Strategy Statement.

Quarterly Investment Performance - 2026/27 Q1

The committee received a report summarising the Pension Fund's investment performance for the first quarter of 2026/27, presented by representatives from London CIV. The Scheme returned 7.6% over the quarter, with Listed Equities being the strongest contributor. However, the report noted that the Scheme's overall performance remained below its benchmark over the three and five-year periods, largely due to the underperformance of active equity managers. The committee was recommended to note the investment performance.