The Pension Fund Committee of Hammersmith and Fulham Council met on Tuesday 08 September 2026. The meeting's agenda included a review of key performance indicators for pension administration, an update on pension administration services, and a discussion on the draft annual report for 2025/26. Further items for consideration involved the investment strategy, including strategic asset allocation and the investment strategy statement, alongside temporary investment consultancy arrangements during the transition to the London CIV. The committee was also scheduled to receive a quarterly update on the pension fund for Q2 2026.

Key Performance Indicators

The committee was scheduled to receive a summary of the performance of the Local Pension Partnership Administration (LPPA) in providing pension administration services to the Hammersmith & Fulham Pension Fund for the period of April to June 2026. This report aligns with the Council's value of being ruthlessly financially efficient by ensuring good governance for the Pension Fund, which is expected to lead to better long-term financial performance. The report details Key Performance Indicators (KPIs) for the period, in line with The Pension Regulator's guidance for governing bodies to regularly assess performance.

Pension Administration Update

An update on the administrative work of the pensions team was scheduled for discussion. This report outlines the activities undertaken by the pensions team, highlighting progress in areas such as employer engagement and member satisfaction. It also addresses regulatory issues impacting the fund, including changes from HMRC regarding calculation factors, the McCloud remedy, and the upcoming pensions dashboard. The report notes that the service delivered by LPPA has improved but remains closely monitored by the Head of Pensions to ensure the best interests of members and beneficiaries are met.

Draft Annual Report 2025/26

The committee was set to consider the draft Pension Fund Annual Report and Statement of Accounts for the year ending 31 March 2026. This report is a regulatory requirement and provides an overview of the fund's governance, administration, funding, and investment management. The report includes details on the fund's financial performance, investment policy, scheme administration, and actuarial information. The draft report was shared with external auditors prior to its presentation to the committee.

Investment Strategy Review: Step 2 - Strategic Asset Allocation

This item was scheduled to reintroduce the Investment Strategy Review, focusing on Strategic Asset Allocation, following a member training session. The committee was asked to consider three illustrative strategic asset allocation options, taking into account the fund's improved funding position, evolving cashflow profile, and the requirements of the London Collective Investment Vehicle (LCIV) pooling. The report, accompanied by detailed analysis from Isio, aims to assess whether the current investment strategy remains appropriate and to identify opportunities for improvement. The options presented seek to balance investment return, risk, inflation protection, income generation, responsible investment considerations, and future implementation through the London CIV.

Investment Strategy Statement

The committee was scheduled to review the draft Investment Strategy Statement (ISS) for the Hammersmith & Fulham Pension Fund, effective from 8 September 2026. This statement has been updated to reflect the requirements of the Pension Schemes Act 2026 and the Local Government Pension Scheme (Pooling, Management and Investment of Funds) Regulations 2026. The revised ISS incorporates high-level financial objectives, a strategic asset allocation, an approach to risk management, responsible investment priorities, stewardship and voting policies, local investment objectives, and arrangements for implementation through the London CIV. The statement emphasizes the fund's fiduciary duty and its commitment to responsible investment and climate change considerations.

Temporary Investment Consultancy Arrangements During Transition to the London CIV

This report sought approval for the appointment of ISIO for a six-month period from 1 October 2026 to 31 March 2027. This arrangement is intended to bridge the transition between the expiry of the fund's existing investment consultancy framework and the point at which the London CIV expects to provide its complete investment advisory offering. ISIO would be available for individually commissioned specialist assignments where London CIV confirms the required capability is not yet available, up to a maximum value of £45,000. This proposal supports the Government's Fit for the Future reforms by avoiding duplication of advisory functions and supporting the orderly migration of investment advisory responsibilities to the pool.

Pension Fund Quarterly Update Q2 2026

This report was intended to provide the committee with a summary of the pension fund's overall performance for the quarter ending 30 June 2026, a cashflow update and forecast, and an assessment of risks and mitigation actions. Appendix 1 was expected to contain a scorecard with key metrics, while Appendix 2 would detail investment performance. Appendix 3 was to provide the cashflow monitoring report, and Appendix 4 the risk register. The report also noted the commencement of new LGPS pooling regulations and statutory guidance from the Ministry of Housing, Communities and Local Government.