The Pension Fund Investment & Administration Panel met on Monday 15 September 2025 to review the draft Pension Fund Annual Report and Statement of Accounts for the year ending 31 March 2025, and to consider proposed changes to the Responsible Investment Policy. The Panel also received performance updates from Fidelity and noted the expected impact of the Pension Schemes Bill on the Fund.

Pension Board Annual Report 2024-25

Councillor Olu Babatola, Chair of the Pension Fund Investment & Administration Panel, presented the annual report of the Pension Board for 2024-25. The Board, established in 2015, assists the Royal Borough of Greenwich in its role as scheme manager, focusing on efficient and effective governance and administration. The report detailed the Board's activities throughout the year, including reviews of scheme administration, the Fund's Communications Policy, quarterly fund performance, and risk registers. It also highlighted training received by Board members, including sessions on auditing and accounting standards, climate risk management, and an introduction to private markets. The Board met four times during the year, and no conflicts of interest were reported.

Draft Pension Fund Annual Report and Draft Statement of Accounts as at 31 March 2025

The Panel reviewed the draft Pension Fund Annual Report and Statement of Accounts for the year ended 31 March 2025. The report provided a comprehensive overview of the Fund's financial activities, investment performance, and governance initiatives. The Chair of the Panel, Councillor Olu Babatola, noted that the overall value of the Fund increased by £63.86 million to £1.75 billion, representing approximately 4% growth. He also highlighted the Fund's achievement in becoming a signatory to the Financial Reporting Council's UK Stewardship Code in 2024. The Panel considered and commented on the draft accounts, and noted that the Annual Report would be published upon receipt of the Auditor's Opinion following Council approval.

Draft Responsible Investment Policy

The Panel considered draft changes to the Responsible Investment (RI) Policy, which aims to integrate environmental, social, and governance (ESG) factors into investment decisions and stewardship activities. The updated policy includes a new section on human rights. The Panel agreed to proceed with consultation on the proposed changes, which will involve scheme members, participating employers, and trade unions. The revised policy will be incorporated into the Investment Strategy Statement (ISS) and is scheduled for review at the Pension Fund Investment and Administration Panel meeting on 8 December 2025.

Actuarial Valuation - Assumptions

The Panel received an update on the progress of the actuarial valuation and assumptions for the Royal Borough of Greenwich Pension Fund. The report, presented by Hymans Robertson, outlined key actuarial assumptions, including the discount rate, inflation expectations, salary growth, and longevity projections. These assumptions are critical for determining the Fund's liabilities and employer contribution rates. The Panel was asked to note the progress and consider the proposed assumptions. The report was discussed in closed session due to its sensitive financial and business information.

Fidelity - GEME Performance

A performance update was received from Fidelity regarding the Fund's Global Emerging Markets Portfolio. The report, presented in closed session, detailed the performance of this specific investment mandate.

Fund Manager Performance to 30 June 2025

The Panel received a report on the performance of the Royal Borough of Greenwich Pension Fund's investment managers for the period ending 30 June 2025. The report, presented in closed session, indicated that the overall Fund's assets increased by approximately £64.9 million over the quarter, achieving a return of 3.8%, outperforming its composite benchmark by 0.7%. Several funds, including LGIM Future World Global Equity and Fidelity Bonds, showed strong performance. However, some funds, such as LCIV Absolute Return and LCIV Renewable Infrastructure, underperformed their benchmarks. The Panel noted the report and agreed to continue monitoring the performance of the investment managers.

Training - Valuation Assumptions

Members of the Panel received training from Hymans Robertson on assumption setting for the 2025 Actuarial Valuation. This training is crucial for ensuring that the Panel members have the necessary knowledge and skills to make informed decisions regarding the Fund's financial future. A paper-based quiz was also undertaken to assess understanding of the training provided.

The meeting also included standard agenda items such as apologies for absence, urgent business, declarations of interest, and the confirmation of previous minutes. The Panel also noted the expected impact of the Pension Schemes Bill on the Fund, as detailed in an exempt appendix.