The Pension Fund Committee of Hammersmith and Fulham Council met on Tuesday 25 November 2025 to discuss key performance indicators for pension administration, updates on pension administration, responsible investment policy, and investment proposals. The committee noted the performance of the Local Pension Partnership Administration (LPPA) and approved an updated Responsible Investment Statement, while also deciding not to proceed with an investment in the Resonance Fund.

Key Performance Indicators for Pension Administration

The committee received an update on the Key Performance Indicators (KPIs) for the Local Pension Partnership Administration (LPPA) service provided to the Hammersmith & Fulham Pension Fund for the period July to September 2025. Eleanor Dennis, Head of Pensions, reported that while there had been a continuous improvement in service delivery, with most KPIs maintained above the 95% target, she had noted a dip in the quality of service received. This included issues with obtaining key information and quarterly reports on time and accurately. LPPA attributed these issues to staff turnover and the need for experienced resources. Councillor Adam Peter Lang commended the general progress, particularly on retirement processing, but stressed the importance of keeping the service under review. Peter Parkin, a co-opted member, raised a concern about a potential glitch in the members' portal where login details might revert to LBHF login details, which Eleanor Dennis stated she would escalate. The committee noted the report.

Pension Administration Update

Eleanor Dennis also presented an update on key areas of pension administration. She reported an increase in the number of complaints handled by LPPA, though these were being dealt with more efficiently. Member satisfaction survey responses remained low, but most respondents were satisfied. The committee was informed about upcoming changes to inheritance tax on pensions, which would involve more work for administrators from April 2027. The average wait time for the LPPA Helpdesk had fallen, but early indications for October suggested it would increase again. The committee noted the report.

Update to Responsible Investment Policy

The committee discussed an update to the Pension Fund's Responsible Investment Statement, focusing on conflict-linked investments and human rights. Siân Cogley, Pension Fund Manager, presented a revised statement that included an addendum on conflict and human rights, a three-tier classification system for investments (Green, Amber, Red), and clearer expectations for fund managers. The committee heard from Rana Aria and Simon Norbury of the Hammersmith and Fulham Unison branch, who expressed concerns about investments in companies linked to the conflict in the Middle East, specifically Elbit Systems. They argued that profiting from alleged genocide was unacceptable and called for divestment. Councillor Rowan Ree, Cabinet Member for Finance and Reform, countered that the defence sector should not be excluded on ethical grounds, citing European Union recommendations for defence investment. After considerable discussion, the committee resolved to approve the addendum to the Responsible Investment Statement and for officers to explore suitable options for divesting from companies rated as 'red' without setting an unwanted precedent.

Pension Fund Business Plan Outturn 2024/25

Siân Cogley presented the outturn for the 2024/25 business plan, comparing it against the forecast. The report detailed variances in contract fees, employee costs, and investment management fees. A significant variance was noted in the LCIV Absolute Return fund fees, which were lower than budgeted due to a revised fee structure and fewer transition costs than forecast. The committee noted the report.

Pension Fund Quarterly Update Q3 2025

Siân Cogley provided an update on the Pension Fund's overall performance for the quarter ended 30 September 2025. The market value of assets increased by £43 million to £1.482 billion. The Fund underperformed its benchmark by 0.76% over the quarter, delivering an absolute return of 3.33%. Over the year, the Fund delivered a positive return of 7.59%. The report also included updates on cashflow, risk management, and the London CIV's progress on pooling reforms and expansion. Councillor Adam Peter Lang inquired about salary sacrifice schemes, and it was confirmed that Hammersmith and Fulham does not offer such schemes, so no members would be affected by any changes. The committee noted the report.

Investment Proposals

The committee considered proposed adjustments to the Fund's investment portfolio. Officers and advisors recommended not proceeding with an investment in the Resonance social impact housing fund due to liquidity risks, concerns about performance track records, and a return profile that may not sufficiently compensate for the risk. The committee was also asked to approve an additional £35 million commitment to the Quinbrook Renewables Impact Fund II to maintain the Fund's strategic allocation to renewable infrastructure. Finally, the committee was asked to consider redeeming the Fund's holdings in the LCIV Global Equity Quality Fund, managed by Morgan Stanley, due to sustained underperformance and comparatively high management fees, and to reallocate the proceeds to an alternative equity product. Appendix 1, detailing the Resonance Fund due diligence, Appendix 2 on the Quinbrook top-up, and Appendix 3 on the Morgan Stanley disinvestment were restricted due to commercial confidentiality. The committee resolved to note the decision not to proceed with the Resonance Fund, approve the additional commitment to Quinbrook, and consider the redemption from the Morgan Stanley mandate.

The meeting also included updates on Key Performance Indicators for pension administration, a Pension Administration Update, Pension Fund Cessations, and a Responsible Investment Update, all of which were noted by the committee.