The Pensions Board of Lambeth Council is scheduled to convene on Wednesday 28 October 2026 to review a range of reports concerning the management and performance of the Lambeth Pension Fund. Key discussions are expected to focus on the Fund's financial performance, risk management, and the implementation of new governance and investment strategies.

Lambeth Pension Fund Investment Performance Review

A significant portion of the meeting is expected to be dedicated to reviewing the performance of the Lambeth Pension Fund's investments as of 30 June 2026. The report indicates that while the Fund experienced positive returns during the quarter, driven by strong performance in emerging markets, it has underperformed against its benchmark over longer periods. The report will detail the performance of various asset classes, including Global Equity, Emerging Markets Equity, Property, Multi-Asset Credit, Private Debt, Corporate Bonds, LDI, and Private Equity. The strategic asset allocation will also be examined, highlighting areas where the Fund is currently overweight or underweight compared to its targets. This includes a notable overweight to global equities and multi-asset credit, and an underweight to property and the Liability Driven Investment (LDI) portfolio. The report will also touch upon the Fund's UK exposure within existing mandates and detail the management fees incurred.

Lambeth Pension Fund Risk Register

The Board is scheduled to review the Lambeth Pension Fund Risk Register, which has been updated to align with significant changes introduced by the Government's Local Government Pension Scheme (LGPS) reform programme. This review aims to ensure the register remains an effective tool for managing the Fund's governance, administration, investment, and regulatory risks. The report highlights four new strategic risks: failure to comply with LGPS asset pooling requirements, implementation of the new LGPS governance framework, maintaining an up-to-date Investment Strategy Statement (ISS), and the procurement and implementation of critical pension fund contracts. A red-rated risk concerning a disclaimed audit opinion on the Fund's accounts is also detailed, alongside several amber-rated risks relating to insufficient resources, knowledge and understanding of committee members, insufficient organisational capacity, pay and price inflation, investment risk, investment underperformance, climate change, and stewardship.

Draft Annual Report 2025/26

The Board will consider the draft 2025/26 Annual Report for the Lambeth Pension Fund, which includes the draft statement of accounts. The report notes that the external auditors, Mazars, have yet to formally begin their audit, and it is anticipated that their opinion on the Pension Fund Accounts may be disclaimed due to ongoing work required to establish robust opening balances. The report details the Fund's financial performance for the year, showing an increase in asset value but performance below benchmark. It also outlines changes in membership composition and cash flows, alongside the Fund's investment strategy and its transition to London CIV for asset pooling.

Lambeth Pension Administration - Quarterly Performance Update

A quarterly performance update for the Lambeth Pension Administration Service, covering April to June 2026, is scheduled for review. This report will provide details on performance against agreed indicators, administrative updates, and ongoing developments and projects. Key areas to be covered include membership data, key performance indicators for case processing, member and employer engagement through platforms like 'Engage', and updates on the McCloud Remedy implementation and the Pensions Dashboard project. The report also details breaches of the law, complaints, compliments, and an analysis of pension opt-out rates.

Draft Training Strategy and Plan

The Board is expected to review a draft Training Strategy, Training Policy, and Training Plan for 2026/27. These documents are being presented in response to new requirements arising from the Government's Good Governance reforms for the LGPS, which mandate that administering authorities maintain a documented Training Strategy. The strategy aims to ensure that Pension Committee members, Local Pension Board members, and relevant officers obtain, maintain, and demonstrate the necessary knowledge and skills to fulfil their responsibilities. The plan outlines a framework for knowledge and skills development, compliance monitoring, training delivery, and reporting, with a particular focus on investment strategy, LGPS governance, investment pooling, and responsible investment.

Lambeth Pension Fund - Investment Performance Review

A review of the Lambeth Pension Fund's investment performance for the quarter ending 30 June 2026 will be presented. This report, prepared by Mercer, the Fund's investment adviser, will provide an update on the performance of the Fund's managers against agreed benchmarks. It will also cover updates on the implementation of the agreed investment strategy and any rebalancing required to maintain the strategic asset allocation. The report notes that while the Fund outperformed its benchmark for the quarter, it has underperformed over longer time periods.

Business Plan Tracker

The Board will receive an update on the Business Plan Tracker, which monitors progress against the key priorities and objectives set out in the Fund's Business Plan for 2026/27. This will provide an overview of the status of various objectives across administration, governance, communication, actuarial/funding, financial and risk management, and investment and strategy.

General Update

A general update on pensions-related matters will be provided, covering various standing items. This includes an update on the Fit for the Future reforms to LGPS governance and investment, progress on the London CIV asset pooling arrangements, and the status of the 2025/26 Pension Fund Accounts, which are noted to have faced challenges and may result in a disclaimed audit opinion. The update will also include information on upcoming training opportunities and a review of resources, noting that additional interim resources have been put in place pending a permanent restructure.