The Pension Fund Panel met on Wednesday, 10 September 2025, to review the Fund's performance, administration, and annual report. Key decisions included noting the performance of the Local Pensions Partnership Administration (LPPA), approving the Pension Fund Annual Report and Accounts for 2024-2025, and approving a commitment to the Gresham House British Sustainable Infrastructure Fund III.

Pension Fund Administration Update

The Panel received an update on the performance of the Local Pensions Partnership Administration (LPPA), the external contractor responsible for the pension administration contract. David Hodgson, Pensions Manager, presented the report, noting that he had been with Ealing for less than two months. The LPPA's Quarterly Administration Report for Q4 (01/01/2025 – 31/03/2025) showed an overall Service Level Agreement (SLA) performance of 99.3%, exceeding the 95% target.

Key points from the update included:

• The McCloud Remedy is being accounted for, with early results showing a small benefit from the underpin affecting 4-5% of cases. Information will be ready for members' annual benefit statements by the end of August.
• Public sector schemes are required to connect to the Pensions' Dashboards Ecosystem by 31 October, and Ealing is on track for this.
• There is room for improvement in areas such as engagement around retirement notifications and streamlining communications on the online portal and McCloud dashboard.
• Mr Hodgson expressed a positive overall view of the LPPA following two meetings and indicated his intention to continue building a strong relationship with them.

Decision: The Pension Fund Panel resolved to note the performance of the LPPA as set out in their Quarterly Administration Report Q4.

Pension Fund Performance Monitor Update for Quarter ended 30 June 2025

Bridget Uku, Finance Manager Treasury & Investments, presented the update on the Fund's investment performance for the quarter ending 30 June 2025. The total Fund value increased to £1,777.4m from £1,713.7m at 31 March 2025, representing a 3.6% increase.

Key updates included:

• Lothbury Property Trust: The fund is winding down, with £7m remaining. Ealing Council is still receiving proceeds from its liquidation.
• Federated Hermes: The merger of this property fund with LGIM is in its final stages.
• Fit for the Future consultation: All Local Government Pension Scheme (LGPS) Funds must pool investments by 1 April 2026. The pooling arrangements may mean investments fall under the management of the pools, rather than requiring funds to sell private market investments. Local authorities will take primary advice from the pool, though they can secure their own separate advice if needed.
• Investment Strategy: It has proven difficult for active fund managers to find an edge in the current market, which is described as very event-driven and well-researched in developed markets.
• Government Policy: The government has indicated that local is local area, meaning all London Funds must jointly develop local investments via the London Collective Investment Vehicle (LCIV). The LCIV is proposing a matrix of consensus buckets for responsible investments.
• Legislation: A bill is progressing through Parliament with government backstop powers to compel local authorities to pool.

Decision: The Pension Fund Panel resolved to:

• Note the update on Fund performance and other matters to 30 June 2025.
• Note the value of the Fund Investments of £1,777.4m as at 30 June 2025.
• Note the updates on Lothbury Property Trust and Federated Hermes.
• Note progress on the approved investment into the Sustainable Infrastructure Fund III (BSIF III).
• Note the update on the migration from the LGIM Low Carbon Target Fund to the LGIM Paris Aligned Fund.
• Note and approve the top-up of the Fund's existing private debt mandates and infrastructure mandate to bring the overall allocation back in line with the agreed strategic targets.

Pension Fund Annual Report and Accounts 2024-2025

The Panel reviewed the draft Pension Fund Annual Report and Accounts for the year ending 31 March 2025. The report includes the Pension Fund Accounts, statutory statements, and a summary version for members.

Key aspects of the report highlighted:

• The Fund's gross market value was £1.714bn as at 31 March 2025, with a return of 3.32% for the year. Since inception, the Fund has delivered an annualised return of 7.63%.
• The Fund remains well-funded, with a 96% funding level as per the 2022 valuation, despite a £71m deficit. Employer secondary contributions are addressing this shortfall.
• The Fund is committed to sustainable investing, with a net zero emissions target by 2045, including active engagement with companies and collaboration with the London CIV.
• Governance is overseen by the Pension Fund Panel (PFP), the Pension Board, the Treasury Risk & Investment Board (TRIB), officers, and professional advisors.
• The report details the Fund's financial performance, including income from employer and employee contributions, transfers in, and investment income, alongside expenditure on pensions, lump sums, and management expenses.
• The total value of contributions received from 1 April 2023 to 31 March 2024 was £62.015m, and £64.839m for 2024/25. There were no late payments.
• Net non-investment assets totalled £25,284m at 31 March 2025.
• The report includes policy statements on governance, funding strategy, and investment strategy, as well as the audited accounts.
• The external audit fee for the Pension Fund accounts by Forvis Mazars is £87,840.

Decision: The Pension Fund Panel resolved to:

• Note the draft Pension Fund Annual Report and statutory statements.
• Approve the Pension Fund Newsletter for circulation to Fund members.
• Delegate authority to the Strategic Director, Resources, following consultation with the Chair and Deputy Chair of the PFP, to finalise the annual report.

Pension Fund Asset Allocation Strategy Implementation Update

The Panel received an update on the progress of implementing the strategic asset allocation changes approved in December 2023. This included a proposal to allocate capital to the Gresham House British Sustainable Infrastructure Fund III (BSIF III) as part of the private markets' implementation and infrastructure/impact allocation.

Decision: The Pension Fund Panel resolved to:

• Note the update on the implementation of strategic asset allocation changes.
• Approve the proposed commitment of £17m to Gresham House BSIF III within the infrastructure allocation.

Training

A presentation was delivered by representatives from Aberdeen Standard on real asset investment. This session was held in private session as it contained exempt information.

Private Debt and Infrastructure Review

A presentation was given by Matt Woodman from Hymans Robertson on private debt and infrastructure. This session was also held in private session.

The meeting was attended by Councillor Ilayda Nijhar (Chair), Councillor Dee Martin (Vice-Chair), Councillors Yvonne Johnson, Lauren Wall, Ray Wall, Ian Kingston, and Andrew Steed. Sukhminder Kalsi, Trade Union Representative, sent apologies. LBE Officers Bridget Uku, David Hodgson, and Cornelia Harding were in attendance, along with advisor Matt Woodman from Hymans Robertson. The meeting commenced at 7:00 pm and concluded at 8:24 pm.