The Islington Council Pensions Committee scheduled a meeting to discuss the performance of the pension fund, review investment strategies, and consider governance matters. The committee was also expected to review the pension fund's risk register and forward work programme, as well as receive updates on the London Collective Investment Vehicle (LCIV).

Pension Fund Performance

The committee was scheduled to note the fund's performance between 1 April and 30 June 2025, according to the BNY Mellon interactive performance report. They were also due to receive a presentation from Apex, the council's independent investment advisers, on fund managers' quarterly performance, as detailed in the Appendix 1- Apex - Islington Q2 2025 report. A report by Pensions & Investment Research Consultants (PIRC) comparing the fund's performance to a peer universe of 63 funds as at 31 March 2025, as outlined in Appendix 2 -Islingtonperf 25, was also scheduled to be noted.

The Public reports pack 02nd-Sep-2025 19.00 Pensions Committee included a table outlining the performance of various fund managers:

Investment Strategy Review

The committee was scheduled to note progress on implementing the current investment strategy, including a review of liquidity, risk, inclusive economy, and net-zero decarbonisation targets. They were also expected to discuss a split voting service for the Legal & General Investment Management (LGIM) World ESG Paris Aligned index mandate via Tumelo¹. The committee was to consider delegating authority to the Acting Director of Corporate Resources to contract PIRC² to vote on the council's behalf for this mandate, and to prepare a voting policy for consideration at the next meeting. A presentation from Mercer, included as an exempt appendix in the pensionscteeinveststrategyconsiderations Sept25 report, was also scheduled to be received and considered.

The committee was to consider the following options for incorporation into the full strategy review:

• Views on the current strategy, expected returns, and risk appetite.
• De-risking opportunities, such as lower volatility assets or strategies to enhance capital preservation.
• Exploration of new asset classes, such as index-linked gilts, short-duration credits, and working capital finance.
• Infrastructure allocation outlook, including the potential for adjustments to infrastructure commitments.

The committee was also expected to consider delegating authority to the Acting Director Corporate Resources, in consultation with the Chair, to agree to the draft funding strategy statement to begin employer consultation before the December meeting.

LGPS Pension Risk Register

The committee was scheduled to review and note revisions made to the Local Government Pension Scheme (LGPS) pension risk register (PRR). According to the LBI Pensions Risk Register Jul2025v4 report, the PRR outlines the key objectives of the Islington Pension Fund and its administration, and establishes a methodology for implementing proactive risk management.

The report also noted that there was one new activity that had been assessed as high risk:

• Risk 6 – Pension Payroll Reports – Creation & Maintenance: This risk was changed from 'The late provision of payroll reports (Corporate Payroll)' to 'Pension Payroll Reports – Creation & Maintenance', to reflect the specific risk more accurately. The risk rating for this area of work, following the review, remained at 9.

The report also highlighted two risks that had increased since the last review:

• Risk 11 – Remedies in relation to the McCloud Judgement: The timeline for the McCloud project[^1] remediable service information to be included in the 2025 Annual Benefit Statements (ABS) remained a challenge to complete by the statutory deadline of 31 August 2025. The initial risk rating on this area of work following review had increased from 12 to 15, but updated mitigations had reduced the rating to 12. [^1]: The McCloud Judgement relates to unlawful age discrimination found to have occurred in the reformed public service pension schemes.
• Risk 13 – Delayed Implementation of iConnect Tool: The implementation of the iConnect data capture tool had raised a large number of issues in relation to data validation of council employees with concurrent multiple and casual employments, new starters, and address changes. The risk rating on this area following review and further actions to mitigate risk had increased from 10 to 12.

Four-Year Business Plan Review

The committee was scheduled to consider and note the four-year business plan, with progress to June 2025, as detailed in the 4yrbusinessJune2025 report. They were also expected to undertake a review of the plan's objectives for any amendments for the next four years.

The key objectives of the five-year business plan agreed at the September 2024 Pensions committee were:

• To achieve best practice in managing investments.
• To continually improve administration and governance.
• To engage with companies as an active and responsible investor.
• To actively monitor and challenge poor performance in managers and to pursue new investment opportunities.
• To develop collaboration opportunities with other funds for sharing of services and pooling.

London CIV Update

The committee was scheduled to receive an update on the progress made at the London CIV in launching funds, running portfolios, and reviewing governance and investment structure, as detailed in the pension LCIV updateSept25 report.

The update included highlights from the July newsletter, including:

• The summer conference held at the Tower of London.
• The appointment of Mercer to support LCIV in their new strategic asset allocation (SAA) advice provision for Partner Funds.
• The appointment of James Beaumont as the new head of public markets.

The update also noted fund modifications and launches, including:

• LCIV sub fund emerging markets - the LCIV is amending the investment guidelines and policy of the current manager, JP Morgan, with a target date of Q4 in 2025, as well as fee reductions effective from 1 January 2025. A new quant manager Acadian has also been appointed.
• LCIV global equity fund - Newton fee has also been modified with a reduction effective from 1 April 2025.

Co-opting an Independent Member to the Pensions Committee

The committee was scheduled to consider and agree to the process for co-opting a non-voting Independent Member to the Pensions Committee, as detailed in the Independent Member appt report.

The report noted that the appointment of Independent Members can bring several benefits, including:

• Experience and specialist expertise in financial and investment matters.
• Promoting good governance through their objectivity and impartiality.
• Bringing an independent perspective and robust challenge to discussions and decisions at Pensions Committee meetings.

The committee was also expected to consider and recommend to the council to amend the Members' Allowances Scheme to include an allowance for the Independent Member, and to consider and recommend to the council the amount of the allowance payable.

Pension Administration Annual Performance

The committee was scheduled to review the annual performance data for the administration activities of the council's Pensions Office, as detailed in the Pensctteeannual AdminReptSept25 report.

The report included data on:

• The number of members auto-enrolled into the LGPS.
• The average performance for the year to 31 March 2025, in respect of key processes.
• Audit investigations.
• The Islington Council Pension's Portal Update.
• Pensions dashboard developments.

Pensions Committee Forward Work Programme

The committee was scheduled to note the forward plan for future meeting agenda items, as detailed in the pensionforwardprogramSept25 report. They were also expected to agree to make amendments to the plan where priorities have changed, and to review training requirements.

The report noted that recent Fit for Future response from the government has proposed that pension committee Members will be required to have enhanced knowledge and skills.