The Investment Committee of Kensington and Chelsea Council is scheduled to meet on Tuesday 27 October 2026. The meeting's agenda includes a review of the London CIV Investment Management Agreement, a draft Investment Strategy Statement, and an update on the Knowledge and Skills Policy.

London CIV Investment Management Agreement Update

The committee is scheduled to receive an update on the progress of the Investment Management Agreement (IMA) between the Royal Borough of Kensington and Chelsea (RBKC) Pension Fund and London CIV (LCIV). This agreement is a key component of the 2026 LGPS reforms, which aim to strengthen the role of asset pools in managing LGPS investments. RBKC remains responsible for setting the Fund's investment strategy, while LCIV will have an enhanced role in advising on and implementing it. The IMA establishes the contractual basis for LCIV to manage relevant assets on behalf of the Fund, supported by a Power of Attorney (PoA) granting LCIV the authority to implement investment arrangements. Independent legal review of the documentation by Brabners LLP is currently underway, focusing on the scope of the PoA, LCIV's ability to sub-delegate, matters reserved to RBKC, liabilities, controls over borrowing, and termination arrangements. The IMA and PoA will not be executed until the legal due diligence is complete and any outstanding issues are resolved.

Investment Strategy Statement - Draft for Comment

A revised draft of the Investment Strategy Statement (ISS) for the RBKC Pension Fund is presented for comment. This update is necessary to align with the Local Government Pension Scheme (Pooling, Management, and Investment of Funds) Regulations 2026 and associated statutory guidance. The draft ISS retains much of the Fund's existing policy content, including Investment Beliefs, Strategic Asset Allocation, and the Temporary Accommodation local investment allocation, but has been restructured and rephrased to comply with the new regulatory framework. Key changes include the introduction of four mandatory high-level investment objectives (returns, risk, cash flow/liquidity, and local investment), a clearer distinction between the roles of the Investment Committee and the asset pool, explicit treatment of responsible investment priorities, and a formal local investment objective. The draft has been shared with Mercer and London CIV for initial comments, and further feedback from members will be incorporated before a final version is presented for approval in February 2027.

Knowledge and Skills Policy - Update

The committee is asked to approve an updated Knowledge and Skills Policy for the RBKC Pension Fund. This revision is in response to the LGPS governance and pooling reforms and aims to strengthen arrangements for ensuring that individuals involved in the Fund's governance and decision-making possess the necessary knowledge and skills. The updated policy aligns with current LGPS Regulations, The Pensions Regulator's General Code, CIPFA frameworks, and the statutory pooling framework. It explicitly includes the Senior LGPS Officer within its scope and confirms their overall responsibility for knowledge, skills, and competency arrangements. The policy now uses stronger obligations for maintaining knowledge, induction, and periodic assessments, and links training to the committee's work programme to ensure briefings precede significant decisions. It also gives greater prominence to pooling arrangements and introduces a clearer Training Register, annual declaration, and monitoring framework.

Employer Cessations Procedure for the Determination and Approval of Exit Credits

The committee is being asked to approve a new procedure note that will govern the determination and approval of exit credits for employers ceasing participation in the RBKC Pension Fund. This procedure establishes a clear governance framework for these situations, particularly when an actuarial cessation valuation identifies a potential exit credit. The need for this formalised process has been highlighted by a current employer cessation case. The proposed procedure requires a formal actuarial cessation valuation, followed by an initial officer review and a structured review with the Fund Actuary. A decision report will be prepared, detailing the background, financial position, legal considerations, and a recommendation for the exit credit amount. This will be followed by internal officer scrutiny and a review by the Local Pension Board before any payment is authorised. The procedure will be incorporated as an appendix to the Fund's Funding Strategy Statement.

Rebalancing

The committee will receive an update on the latest investment asset valuations against the target allocation range. This report is a standing item to allow the committee to regularly review the current asset allocation. The update includes unaudited valuations as of the most recent date available, showing the actual allocation percentage against the target allocation and any variance. The report indicates that no further rebalancing actions are currently required.

Quarterly Performance Review

This report presents the Northern Trust quarterly performance review for the Fund as at 30 June 2026. It summarises the Fund's valuation and the performance of each fund manager, along with other relevant investment updates. The report highlights an increase in the Fund's value and provides details on the performance of key investment managers, including BlackRock (Global Equities) and Adams Street (Private Equity). It also includes an update on the Fund's funding position, which has improved, and an update on the procurement of actuarial services. A revised draft risk register is also presented for review.

Direct Property Update

An update on the current direct property mandate is scheduled to be provided. This report will include a summary of performance during the last quarter and an update following recent and pending acquisitions of direct property. The CBRE quarterly update and performance report is attached as an appendix, though it is exempt from publication.

The meeting will also address other agenda items, including apologies for absence, declarations of interest, minutes of the previous meeting, and an action tracker. Part B of the agenda includes items that will be discussed with the press and public excluded, such as Temporary Accommodation Investment Progress Update, Judicial Review Update, and exempt minutes from the previous meeting.