The Pensions Investment Committee discussed updates on the fund's general operations, including progress on a council motion regarding divestment and the transition to investment pooling with the London Collective Investment Vehicle (LCIV). The committee also reviewed and approved updates to the Investment Strategy Statement, Funding Strategy Statement, and Responsible Investment policies, informed by a member survey.

General Update Report - Part One

The committee received a comprehensive update on various aspects of the Lewisham Pension Fund's operations. A key focus was the progress made in response to a motion passed by the Council in July 2025, which called for increased transparency and potential divestment from companies operating in occupied territories or linked to human rights abuses. The report indicated that work on disclosing holdings and engaging with the LCIV on exclusion frameworks has been completed, with ongoing engagement with campaigners and trade unions.

Updates were also provided on the administration team's work, including the transfer of website hosting and the rollout of a new member self-service portal. The transition to pooling investments with the London Collective Investment Vehicle (LCIV) was highlighted, with the committee being asked to approve the entering into of an Investment Management Agreement (IMA). This agreement will formalise the transfer of investment management responsibilities to the LCIV by April 2026, though the committee will retain strategic oversight and fiduciary responsibilities.

A training needs assessment for committee members was presented, identifying areas for development in pension legislation, administration, and actuarial processes. The committee noted the ongoing work of the Pension Board, which provides scrutiny and due diligence.

Investment Strategy Statement Update

The committee was asked to approve the updated Investment Strategy Statement (ISS) for the Lewisham Pension Fund. This statement, which replaces the May 2023 version, incorporates changes arising from the 2025 actuarial valuation, including modest adjustments to the strategic asset allocation. It also reflects the Fund's evolving approach to local investment, with a target allocation of 1-3% of total assets, and acknowledges that from April 2026, the LCIV will assume primary responsibility for managing and monitoring all Fund assets. The ISS also consolidates references to the Fund's expanded suite of responsible investment policies.

The Funding Strategy Statement (FSS), which was approved in December 2025, was noted as having completed its required employer consultation and will be effective from March 31, 2026. The ISS aims to achieve a benchmark return in excess of the discount rate of 5.3% per annum.

Responsible Investment and Member Survey Update

The committee reviewed the results of a member survey conducted between October and December 2025, which aimed to gather feedback on responsible investment priorities. The survey received 1,015 responses, representing approximately 3.5% of the Fund's membership. While this response rate is considered low, it benchmarks similarly to other pension fund surveys.

The survey indicated a strong alignment between member views and the Fund's existing Responsible Investment (RI) Beliefs, Engagement Policy, and Carbon Transition to Net Zero Policy. Members generally expressed support for considering environmental, social, and governance (ESG) factors, while also recognising the importance of financial returns. Key themes emerging from the survey included climate change, human rights, good governance, and the expectation for the committee to monitor and engage with investment managers on these issues.

Based on the survey results, the committee was asked to approve modest revisions to the RI Beliefs, Engagement Policy, and Carbon Transition to Net Zero Policy. The proposed changes aim to strengthen the Fund's approach to responsible investment, particularly in relation to the role of the LCIV, and to better reflect member expectations.

The updated RI Beliefs statement, for example, explicitly positions the LCIV as the primary mechanism for delivering RI and climate objectives, with increased expectations for stewardship, voting, and engagement. It also clarifies the approach to divestment, stating it can be considered when engagement is ineffective. The Engagement Policy has been revised to link engagement activity more clearly with the Net Zero Policy, and the Carbon Transition to Net Zero Policy outlines updated targets for emissions reduction and increased investment in climate solutions.

Exclusion of Press and Public

The committee resolved to exclude the press and public from the meeting for agenda items 8 (Pooling with the London CIV) and 9 (Investment Monitoring Q4 2025) on the grounds that these items were likely to involve the disclosure of exempt information.

Future Meeting Dates

The committee noted that future meeting dates would be published at the Annual General Meeting of the Council, scheduled for May 20, 2026.