The Hammersmith and Fulham Pension Fund Committee met to discuss fund performance, administration, and investment strategy, and to address concerns raised by Unison Union regarding ethical investments. The committee agreed to appoint Councillor Adrian Pascoe-Tulbury as vice chair for 2025-2026 and approved a payment to London LGPS CIV Limited to support its regulatory capital requirements. They also noted reports on key performance indicators, pension administration, and the draft statement of accounts.

Here's a detailed look at the key discussion points:

• Unison Union Petition
• Aberdeen Multi Sector Private Credit
• Key Performance Indicators
• Pension Administration Update
• Draft Pension Statement of Accounts
• London CIV Regulatory Capital
• Pension Fund Quarterly Update Q1 2025

Unison Union Petition

Councillor Ross Melton, Chair of the Pension Fund Committee and Lead Member for Energy and Decarbonisation, addressed a letter and petition from Unison Union regarding concerns beyond the scope of the LBHF pension fund. He stated that while the submission was late and did not allow for public speakers, he wanted to provide information on points relevant to the fund.

Councillor Ross Melton emphasised the fiduciary responsibility to support pension fund members while also prioritising investments that make a positive global impact. He highlighted the fund's commitment to decarbonisation, noting it has the second smallest carbon exposure of any UK Local Government Pension Scheme (LGPS).¹

Councillor Ross Melton also addressed concerns about investments in defence stocks, which account for 3.5% of the fund's exposure. He noted that these investments are held by the London CIV pool, in which the LBHF pension fund is required to participate. He stated that the committee is reviewing its defence investment exposure and is committed to ensuring ethical investments.

I can understand the urgency of uh some of the members of the public's calls for action it would be inappropriate for the lbhf pension fund committee to make a decision affecting uh the pensions of our 17 000 members without the adequate information our legal duty is clear we must think of our pensioners first however i'm pleased to spotlight that we're already taking action we have already begun the process of rapidly reviewing our investments um updating our esg investment statement to ensure that we have the right balance of fiduciary and ethical responsibilities and using our influence as one of the 33 lgps funds within the london civ to make the case for ethical investment

Aberdeen Multi Sector Private Credit

Phil Triggs, Director of Treasury and Pensions, introduced a discussion regarding the Aberdeen Multi Sector Private Credit (MSPC) portfolio. He noted that the fund had been gated in advance of the first of October 2025 dealing date, due to redemptions exceeding 10% of the net asset value over the prior 12 months. Aberdeen representatives, including Youen Jih, Director in the UK Institutional Division at Aberdeen Investments, Martin Barnwell, Head of Commercial Real Estate Desk at Aberdeen, and Marianne Zangle, Deputy Global Head of Fixed Income and Head of ESG for Fixed Income, were present to provide assurance and state their position. The committee moved to a closed session to discuss the matter further.

Key Performance Indicators

Elena Dennis, Head of Pensions, presented a report on the key performance indicators for pension administration provided by Local Pension Partnership Administration (LPPA) for the period April 2024 to March 2025. She noted that LPPA processed over 6,000 cases, an increase from the previous year, with most case types maintaining KPIs above 95%. The committee noted the report.

Pension Administration Update

Elena Dennis also presented a summary of key activities in pension administration operations. She noted that the data submission for the triennial valuation had been pushed back to 11 July, but the actuary, Simons, did not anticipate any impact on the timetable. She also highlighted a successful audit of LPPA's administration service by KPMG, with only two recommendations for improvement in client meetings.

Other updates included improvements to the internal intranet site to highlight scamming information and an open consultation on access and fairness, potentially improving survivors' benefits and cohabiting partners' rights, as well as addressing the gender pension gap by improving maternity leave.

Councillor Adam Peter Lang thanked officers for the reports and echoed the positive comments about the complaints falling. He asked about the pensions dashboard, and Elena Dennis explained that it is a government initiative for members of the public to access their pension information, with a connectivity date for providers of October 2025.

David Hughes, Director of Audit, Fraud, Risk and Insurance, summarised the KPMG service audit, stating that it gave assurance as an internal audit of Hammersmith and Fulham that a good piece of work was done by KPMG, and it covers the controls that LPPA have in place. The committee noted the report.

Draft Pension Statement of Accounts

Phil Triggs presented the first draft of the pension fund accounts for 2024-25, noting they were completed on time and forwarded to Grant Thornton for external audit. He stated that the audit had started two weeks earlier than planned.

Councillor Adam Peter Lang asked about reduced fees, and Phil Triggs explained that fees vary from year to year based on performance and asset valuation. He also noted that there is a drive towards lower fees through pooling. The committee approved the draft statement of accounts.

London CIV Regulatory Capital

Phil Triggs requested approval for an additional payment of £70,312 to London CIV for regulatory capital. He explained that this was a result of the greater amount of assets that the pool will be managing. He also noted that he had taken a deliberate policy decision to take this approval to each of the committees of the triborough. The committee approved the additional payment.

Pension Fund Quarterly Update Q1 2025

Phil Triggs presented the quarterly update, including information on returns, cashflow, and risk management. He highlighted the government's publication of its draft pensions bill and the response to the previous consultation on LGPS being fit for purpose. He noted the dissolution of the Access and Brunel pools and the power of the government to dictate which fund is in which pool and to command any pool to do its bidding in terms of future investment.

An advisor from Isio² summarised the final report, stating that there were no surprises and that the consultation process was done, and everything that was in the consultation was pushed through in the final report. He agreed with Phil Triggs that it will become a new operating environment for LGPS firms and that there are some pretty strong powers that are being created, and those powers really do give government pretty much free reign over telling the LGPS what to do.

Councillor Adam Peter Lang asked about the closure of the two funds and where those 21 LGPS are likely to end up. Phil Triggs explained that the government has made clear that only three pools really have any prospect of offering any of those 21 at home: Border to Coast, LGPS Central, and LPP.

Councillor Adam Peter Lang also asked about the mechanism for the legislation requiring the pools to reflect the preferences of individual LGPS. Phil Triggs stated that he is quite confident in terms of the pool London CIV pool management and the good communication links that we have.

The committee noted the report and requested a training session to take them through the provisions as they develop.