The Pensions Committee of Bexley Council met on Thursday 24 September 2026 to discuss a range of financial and investment-related matters concerning the Bexley Pension Fund. Key topics included a review of the fund's administration, financial performance, investment strategy, and responsible investment policies.

Quarterly Administration Report

The committee was scheduled to receive an update on the administration of the Bexley Pension Fund, including legislative changes impacting the Local Government Pension Scheme (LGPS). The report detailed the performance of the fund's administrators, Local Pensions Partnership Administration (LPPA), covering casework performance, contact centre statistics, and member satisfaction. It also provided updates on ongoing projects such as the McCloud remedy implementation and the development of Pensions Dashboards. The report indicated that overall operational casework performance was 98.3% against Service Level Agreements (SLAs), with all individual case types exceeding the target SLA of 95%. However, the Contact Centre average wait time was slightly over the target at 4 minutes 9 seconds. The report also highlighted that 47.3% of the total fund membership was registered for the member online portal, PensionPoint.

Quarterly Financial and Fund Management Update

This report provided an update on the Pension Fund's management, focusing on its cashflow position for the quarter ending 30 June 2026 and forecasts for the remainder of the year. It projected sufficient liquidity to fund liabilities until the end of the financial year. The report also included an updated risk register, considering the evolving regulatory landscape and macroeconomic conditions, and detailed the status of assets within the London CIV (LCIV) pool, noting that 53% of the Fund's assets were pooled (73% including passive holdings).

Pension Fund Investment Performance

The committee was scheduled to review the investment performance of the Bexley Pension Fund and its investment managers for the quarter ending 30 June 2026. The report indicated a marginal increase in the Fund's valuation, driven by positive equity market performance, although markets remained volatile due to ongoing geopolitical tensions in the Middle East impacting energy markets. The Fund's overall return for the quarter was 4.8%, lagging its benchmark return of 5.6%. Over the longer term, the Fund had also lagged its benchmark from one to five years. The market value of the Fund's investments at 30 June 2026 was £1.10 billion, an increase of £41.6 million from the previous quarter.

Pension Fund Annual Report

The committee was to consider the draft annual report for the Bexley Pension Fund for 2025/26. This report provides a comprehensive overview of the Fund's management and financial performance, investment policy, actuarial valuation, funding position, annual accounts, and policy documents including the Governance Compliance Statement, Funding Strategy Statement, Investment Strategy Statement, Communications Policy Statement, and Responsible Investment Policy. The report highlighted that the Fund's market value stood at £1.08 billion as at 31 March 2026, with a net increase of £43.9 million over the year. The Fund delivered a return of 6.0% in 2025/26, ranking in the bottom decile of comparable funds, primarily due to weaker equity returns.

Pension Fund Cashflow Analysis

This report aimed to provide an overview of the expected cashflow position of the Fund over the next five years and facilitate the creation of a formal cashflow policy. Key observations from the analysis indicated that the Fund's net cashflow position was expected to remain positive, driven by increasing investment distributions. The report reinforced the need for a formal cashflow framework to ensure requirements are met and excess cash is redeployed.

Investment Strategy Statement

The committee was presented with the revised Investment Strategy Statement (ISS) for the Bexley Pension Fund, incorporating changes from the 2026 investment strategy review and updated statutory guidance. The ISS outlines the Fund's high-level investment objectives, approach to risk, responsible investment priorities, and strategic asset allocation. It also details the Fund's approach to local investments and the governance structure of the London CIV (LCIV) pool. The revised ISS was subject to stakeholder consultation, with one response received indicating general agreement.

London CIV - Investment Management Agreement ('IMA')

This report provided an update on the Investment Management Agreement (IMA) entered into with London CIV (LCIV) to formalise pooling arrangements as required by the Local Government Pension Scheme (Pooling, Management and Investment of Funds) Regulations 2026. The IMA defines the terms and conditions for asset management, including roles, responsibilities, fee arrangements, and responsible investment priorities. The agreement was reviewed by Brabners and finalised by Fund officers, with input from Gallagher, the Fund's investment advisor.

Responsible Investment - Belief Setting

This report presented Gallagher's Responsible Investment (RI) belief setting report, seeking the committee's views on the Fund's RI priorities, including climate ambition, stewardship approach, and expectations for implementation through LCIV. The discussion was intended to inform the development of a more formal approach to RI for the Fund and potentially amend the existing Responsible Investment Policy. Key areas for discussion included prioritising material ESG risks and themes, considering a formal net-zero target, and determining the balance between stewardship, engagement, and the use of restrictions or exclusions.

Barnett Waddingham - Governance Review

This report presented the findings from Barnett Waddingham's review of the Fund's readiness to comply with the Pension Regulator's General Code of Practice and the LGPS (Governance) Regulations 2026. The initial review found the Fund to be largely compliant, with key areas for improvement identified in recruiting additional members to the Local Pension Board and documenting audit controls. The report also highlighted areas still under assessment, including internal controls, scheme continuity planning, responsible investment, and reporting of breaches. The report also outlined immediate priorities under the 2026 Regulations, such as appointing a Senior LGPS Officer and an Independent Person.

Training Strategy

This report presented the draft Training Strategy for the Fund, developed to ensure compliance with the 2026 LGPS Regulations. The Strategy aims to ensure that Committee and Local Pension Board members maintain an appropriate level of knowledge and understanding, supported by structured training plans. It establishes a framework covering nine core knowledge areas, induction training, ongoing needs assessment, and monitoring. The Strategy applies to all individuals involved in the Fund's decision-making, governance, and oversight.

Conflicts of Interest Policy

This report presented the draft Conflicts of Interest Policy for the Fund, a requirement under the 2026 LGPS Regulations. The policy aims to ensure transparency and accountability by setting out procedures for identifying, declaring, and managing conflicts of interest for all parties involved in the Fund's governance and management. It applies to Committee and Local Pension Board members, officers, and third-party advisers, and includes provisions for a register of interests and operational procedures for managing conflicts.

The meeting was scheduled to discuss these items based on the provided report pack. Information regarding any actual discussions, decisions made, or outcomes of the meeting is not available as the meeting's information status is PENDINGCOUNCILPUBLICATION.