Here is a summary of the scheduled discussions for the Pension Committee meeting. It is important to remember that this is based on the agenda and associated reports, so it is not a record of what was actually discussed or decided.

The Sutton Council Pension Committee was scheduled to meet to discuss a range of topics, including a petition on investments in Occupied Palestinian Territories, updates on pension administration performance and projects, and the fund's investment performance. Members were also scheduled to review the work programme and receive updates from the London Collective Investment Vehicle (LCIV).

Here are the key items that were listed for discussion:

Petition on investments in Occupied Palestinian Territories

The committee was scheduled to consider a petition calling for a review of the council's investment strategy and divestment from companies operating in the Occupied Palestinian Territories (OPT). The petition specifically requested that the council:

• Conduct an immediate review of all investment funds to identify holdings in companies that supply the Israeli military or operate within the OPT.
• Divest from companies that supply the Israeli military or operate within the OPT, including companies listed by the American Friends Service Committee (AFSC) and Investigate.
• Adopt an ethical investment policy that aligns with the council's commitment to social responsibility and human rights.
• Initiate procedures to push for divestment from pooled funds where investments are identified as complicit.

The report pack noted that as of 31 March 2025, the fund had £6,490,942 invested in companies listed on the AFSC and Investigate divestment lists, representing 0.67% of the total fund value of £962,418,477. The report also set out considerations relating to fiduciary duty, the Sutton Pension Fund's approach to responsible investment, and the role of the LCIV.

The report pack included a summary of LAPFF Engagement Expectations in Conflict-Affected and High-Risk Areas (CAHRAs):

LAPFF expects companies to adopt and publicly disclose policies on heightened human rights due diligence (HHRDD), conduct robust conflict and human rights impact assessments, strengthen supply chain oversight, and engage openly with stakeholders.

The report recommended that the committee agree to review the Fund's Responsible Investment Policy as part of the upcoming Triennial Valuation and Investment Strategy Review, with a revised policy planned for approval in March 2026. It also recommended agreeing to provide annual reporting on the stewardship activity of the Fund, including outcomes of engagements and how voting rights have been exercised, with the first report scheduled for publication in December 2025.

Quarterly Investment Performance

The committee was scheduled to review the investment performance of the fund for the quarter ending 31 March 2025. At that time, the market value of the fund's assets was £962m, a decrease of £27m from the previous quarter. The report pack noted that the fund underperformed the benchmark over the quarter by -1.0%, with a return of -2.7% against a benchmark of -1.7%. The one-year return was 3.7%, underperforming the benchmark by -1.4%. Manager contribution was negative for relative performance as equities and infrastructure mandates underperformed over the quarter. The main contributors to the underperformance were the LCIV Sustainable Equity Fund and LCIV Renewable Infrastructure Fund. The report pack also included the fund's strategic asset allocation and actual asset allocation as of 31 March 2025. The fund's actual allocation was outside of the strategic asset allocation range in equities, property, private debt, impact and cash. The funding level as at 31 March 2025 was 143%, with assets of £945m and liabilities of £662m, resulting in a surplus of £283m. The report pack also included a cashflow forecast for the next three years, indicating that the fund is expected to be cashflow positive.

London Collective Investment Vehicle (LCIV) Update

The committee was scheduled to receive an update on the activities of the LCIV¹, including its pooling position and the outcome of the government's pensions investments review. The report pack noted that as of 31 March 2025, pooled assets stood at £33.9bn, of which £19bn are in funds managed by London CIV. The Sutton fund had £602.1m directly invested in LCIV funds and £204.8m indirectly invested through life funds, representing a total of 83.8% of the Fund's total investments being in pooled assets. The report pack also included the final report on the pensions investments review and the government's response to the Fit for the future consultation. The reports confirm that the government will move ahead with the core of its proposals, with only minimal amendments. The report pack noted that the LCIV has made a request to each shareholder for additional capital in proportion to their existing shareholding, as a result of the growth in Assets under Management and the subsequent fall in the LCIV's regulatory capital surplus below the targeted 150%.

Report on Work of Pension Board 2024-25

The committee was scheduled to receive a report from Jonathan Bunt, Independent Chair of the Pension Board, updating them on the work of the board during the municipal year 2024 to 2025. The report pack noted that the board is legally responsible for assisting the scheme manager in relation to:

• securing compliance with the scheme regulations and other legislation
• securing compliance with requirements imposed by the Pensions Regulator
• such other matters as the scheme regulations may specify.

The report pack also noted that the board had completed training on the LGPS Online Learning Academy.

Pension Administration Performance Update

The committee was scheduled to receive an update on the key administration performance of the Shared Pensions Administration Service. The report pack noted that the number of outstanding processes has further fallen from 1,644 to 962 since the last report, and that the number of processes overdue by three months or more has fallen from 54 to 18. Officers were targeting to have the backlog of cases overdue by three months or more cleared down by 31 July 2025 in preparation for the triennial valuation membership data extract.

Pension Administration Projects Update

The committee was scheduled to receive an update on the key administration projects of the Shared Pensions Administration Service. The report pack noted that all year end returns have been received by the required deadline of 30 April 2025, and that officers are now working through the files and validating the data quality and loading this onto the pension administration system. The report pack also included updates on the Pensions Dashboard and McCloud Remedy projects.

Governance and Risk Update

The committee was scheduled to receive an update on key governance activities and to review the fund's risk register. The report pack noted that the administration risks are rated amber overall, with one red and two amber risks. Both the funding and investments group and governance group are rated green. The report pack also included an update on the Access & Fairness Consultation, and on employer training, admissions & cessations, and administration charges.

Work Programme Update

The committee was scheduled to note the updated Work Programme for the Committee.