The Merton Council Pensions Committee was scheduled to review the progress of the 2024-25 external audit and receive an update on the performance of the Merton Pension Fund for the quarter ending June 2025. The meeting also included discussions on the triennial valuation results and the fund's administration.

2024-25 External Audit Progress Update

The committee was scheduled to receive an update on the progress of the external audit for the 2024-25 financial year. The report from Ernst & Young LLP, the external auditors, outlined the status of their audit procedures, highlighting that the audit work was substantially complete. The report detailed areas of audit focus, including the presumptive risk of management override of controls, the valuation of complex investments (Level 3 and Level 2), and IAS26 disclosures regarding the actuarial present value of promised retirement benefits. The auditors noted that no material misstatements affecting the net asset statement and fund account had been identified, though some disclosure misstatements were found and management had agreed to amend them. The report also confirmed that no significant deficiencies in internal control had been identified.

Quarterly Fund and Investment Managers Performance Review (April-June 2025)

A review of the Merton Pension Fund's investment performance for the quarter ending 30 June 2025 was scheduled. The report, prepared by the Fund's investment consultant Hymans Robertson LLP, detailed the total fund valuation and the performance of individual fund managers. The Fund's total assets increased to approximately £988 million during the quarter. The report indicated that the Fund recorded an absolute return of +4.6% for the quarter, which was a marginal underperformance of 0.1% against its aggregate benchmark. Over longer periods of 12 months and three years, the Fund had lagged its benchmark. The report also provided commentary on the performance of various asset classes, including global equities, emerging market equities, diversified growth, property, infrastructure, and private credit, noting that global equities had produced strong returns driven by the technology sector.

2025 - Triennial Valuation Results

The meeting was scheduled to consider the results of the 2025 triennial valuation. This valuation is a key process for pension funds, assessing the fund's assets and liabilities to determine its funding status and any potential impact on future contribution requirements.

Merton Pension Fund Administration Update

An update on the administration of the Merton Pension Fund was also on the agenda. This would typically cover operational aspects of managing the fund, including services provided by Pension Shared Services.

Future Meeting Dates

The committee was to note the dates for future meetings, scheduled for 10 December 2025 and 18 March 2026.