The Pension Committee of Camden Council met on Wednesday, 18 March 2026, to discuss a range of financial and policy matters concerning the Camden Pension Fund. Key topics included the final draft of the Responsible Investment Policy, the Corporate Governance Annual Review, and updates on the London Collective Investment Vehicle. The committee also reviewed the Fund's performance, cash flow, and membership statistics, alongside the Triennial Valuation and the proposed prepayment of secondary contributions.

Responsible Investment Policy

The committee was presented with the final draft of the Responsible Investment (RI) Policy for the Camden Pension Fund. This policy aims to integrate Environmental, Social, and Governance (ESG) factors into the Fund's investment decisions, affirming the primacy of fiduciary duty and financial materiality. It outlines the Fund's approach to stewardship, investment parameters, collaboration, lobbying, and target setting. The policy also details the Fund's ESG priorities, aligning with specific UN Sustainable Development Goals such as Gender Equality, Decent Work and Economic Growth, Climate Action, and Peace, Justice, and Strong Institutions. A significant component of the policy is the Conflict Zone Exposure Policy, which establishes a structured, geography-neutral framework for identifying and managing heightened human rights and governance risks in conflict-affected or high-risk areas. The policy recommends approval, noting it will be subject to formal consultation as part of the Investment Strategy Statement.

Corporate Governance Annual Review

A review of the proxy voting carried out by the Pension Fund from 1 January to 31 December 2025 was presented. This report analysed voting data by region, meeting type, and resolution category, highlighting trends and key issues. The report detailed the proportion of resolutions supported and opposed, with specific attention paid to voting outcomes in the UK, US, and Europe. New policies adopted for the 2025 proxy season, including those on gender diversity, share buyback authorities, and pre-emption rights, were also discussed. The committee was asked to note the review and approve the proposed voting policy for 2026.

Engagement Report

This report provided an update on engagement activities undertaken by the Fund and the Local Authority Pension Fund Forum (LAPFF) since the last committee meeting. Key engagement themes included climate transition plans and shareholder governance (Say on Climate ), decarbonisation in hard-to-abate sectors like steel, water stewardship, human rights and conflict-affected areas, employment rights reform, supply chain due diligence in the electric vehicle sector, and executive remuneration. The report also summarised the voting activity for the quarter, detailing the number of resolutions voted on, supported, and opposed.

Cash Flow and Membership Report (2024-25)

The committee received a report detailing the Pension Fund's cash flow and membership statistics for the year 2024-2025 and over the longer term. The report indicated a surplus in core operational cash flow before transfers, driven by higher employer and employee contributions. Benefit payments increased, reflecting inflationary adjustments and growth in the pensioner population. Transfer value activity stabilised, resulting in a net inflow. Investment income also increased, contributing to a strengthened overall cash position. The report also detailed movements in scheme membership, noting an increase in active members, a stabilisation of deferred members, and significant growth in pensioner numbers.

Funding Strategy Statement

The committee was asked to consider revisions to the Funding Strategy Statement (FSS). This statement outlines how scheme employers' liabilities are measured, the pace of funding, and how contributions are paid. The revised FSS incorporates new government guidance, clarifies the approach to employer contribution rates, and details the methodology for asset and liability calculations. It also addresses employer lifecycle events, including entry, bulk transfers, and exits from the Fund. The report noted that the draft FSS had been consulted on with participating employers and the Department for Education, with minor drafting amendments made based on feedback. The committee was asked to approve the revised FSS, effective from 1 April 2026.

Triennial Valuation

This report presented the Triennial Valuation as at 31 March 2025, as assessed by the Fund's actuary, Hymans Robertson. The valuation indicated an improved funding position for the Fund, with assets exceeding liabilities. Employer contribution rates for the next three-year period (2026-2029) were also presented, showing an average reduction in primary rates and secondary rates compared to the previous valuation. The report highlighted the impact of higher assumed future investment returns on the funding position and contribution rates. The committee was asked to agree the draft Triennial Valuation report.

Prepayment of Secondary Contributions

The committee considered a proposal from the Council, as the major employer in the Fund, to prepay its secondary contributions early for the years 2026-2029. This prepayment, amounting to £39.604m, would be made on 1 April 2026. In exchange, the Fund would discount the cash amount by the asset outperformance assumption of 5.7%. This early payment would allow the assets to be invested sooner, potentially accruing growth in line with the Fund's investment strategy. The proposal had been consulted on with the Fund's auditor, Mazars, who indicated no objections. The committee was asked to agree to the prepayment.

London Collective Investment Vehicle (LCIV) Progress Report

A brief update on recent developments at the London Collective Investment Vehicle (LCIV) was provided. The report highlighted the completion of the redemption of legacy mandates, including Harris Associates Global Equity and Baillie Gifford Diversified Growth Fund. An initial investment of £75m was made into the LCIV Global Equity Value (GEV) Fund, managed by Wellington Management. The report also detailed the transition of the CBRE property mandate into LCIV and projected a 100% pooling ratio following the final transition of the Partners Group allocation. A fee comparison between the Harris mandate and the LCIV GEV mandate indicated cost savings. The report noted that the Fund's revised Investment Strategy Statement is in the consultation phase with the LCIV.

Climate Analytics as at 31 March 2025

This report provided climate analytics metrics for the Fund's public market mandates as at 31 March 2025. It included updates on fossil fuel exposure and implied temperature alignment, as well as a review of climate-related disclosures from private market managers. The report indicated that the Fund's public market portfolio is less emissions-intensive than the MSCI ACWI benchmark. It also noted that the implied temperature assessment suggests the Fund's emissions trajectory is below the modelled 2°C decarbonisation pathway. Updates on climate reporting from other mandates, including Baillie Gifford, HarbourVest, Partners Group, CBRE, Aviva, StepStone, and London CIV, were also provided.

Business Plan

The committee received a report outlining items scheduled for future agendas, a record of training and meetings attended, and a list of future training opportunities. This included provisional agenda items for upcoming meetings, details of manager meetings, and an update on the Hymans LGPS online learning academy (LOLA). A refreshed Training Policy and a structured training plan for the coming year were also mentioned, with specific training planned on forthcoming Pension Schemes legislation.

Cash Flow and Membership Report (2024-25)

This report detailed the Pension Fund's cash flow and membership statistics for the year 2024-2025 and over the longer term. The report indicated a surplus in core operational cash flow, driven by higher employer and employee contributions. Benefit payments increased, and transfer value activity stabilised with a net inflow. Investment income also rose, strengthening the Fund's overall cash position. Membership figures showed an increase in active members, a stable deferred membership, and significant growth in pensioners.

Triennial Valuation

The committee was presented with the Triennial Valuation as at 31 March 2025, assessed by the Fund's actuary, Hymans Robertson. The valuation showed an improved funding position for the Fund, with assets exceeding liabilities. Employer contribution rates for the period 2026-2029 were presented, indicating an average reduction compared to the previous valuation. The report attributed this improvement primarily to higher assumed future investment returns. The committee was asked to agree the draft Triennial Valuation report.

Prepayment of Secondary Contributions

The committee considered a proposal from the Council to prepay its secondary contributions for 2026-2029 early on 1 April 2026. This prepayment of £39.604m would be discounted by 5.7% in exchange for early receipt, allowing the Fund to invest the capital sooner. The proposal was noted to have been reviewed by the Fund's auditor, Mazars. The committee was asked to agree to the prepayment.

London Collective Investment Vehicle (LCIV) Progress Report

This report provided an update on the London Collective Investment Vehicle (LCIV), highlighting progress in asset pooling. The Fund had completed the redemption of legacy mandates, including Harris Associates Global Equity and Baillie Gifford Diversified Growth Fund. An initial investment of £75m was made into the LCIV Global Equity Value (GEV) Fund. The report also detailed the transition of the CBRE property mandate and projected a 100% pooling ratio following the final transition of the Partners Group allocation. A fee comparison indicated cost savings from the move to LCIV.

Climate Analytics as at 31 March 2025

The committee received a report on the Fund's climate analytics for its public market mandates as at 31 March 2025. The report indicated that the Fund's public market portfolio is less emissions-intensive than the MSCI ACWI benchmark and that its projected emissions trajectory is below the modelled 2°C decarbonisation pathway. Updates on climate reporting from private market managers, including Baillie Gifford, HarbourVest, Partners Group, CBRE, Aviva, StepStone, and London CIV, were also provided.

Business Plan

The committee reviewed the Business Plan, which included items scheduled for future agendas, a record of training and meetings attended, and a list of future training opportunities. This included provisional agenda items for upcoming meetings, details of manager meetings, and an update on the Hymans LGPS online learning academy (LOLA). A refreshed Training Policy and a structured training plan for the coming year were also discussed, with specific training planned on forthcoming Pension Schemes legislation.

Cash Flow and Membership Report (2024-25)

This report detailed the Pension Fund's cash flow and membership statistics for the year 2024-2025 and over the longer term. The report indicated a surplus in core operational cash flow, driven by higher employer and employee contributions. Benefit payments increased, and transfer value activity stabilised with a net inflow. Investment income also rose, strengthening the Fund's overall cash position. Membership figures showed an increase in active members, a stable deferred membership, and significant growth in pensioners.

Triennial Valuation

The committee was presented with the Triennial Valuation as at 31 March 2025, assessed by the Fund's actuary, Hymans Robertson. The valuation showed an improved funding position for the Fund, with assets exceeding liabilities. Employer contribution rates for the period 2026-2029 were presented, indicating an average reduction compared to the previous valuation. The report attributed this improvement primarily to higher assumed future investment returns. The committee was asked to agree the draft Triennial Valuation report.

Deputations

A deputation request from Caroline Michie, relating to Camden's Pension Fund Investments and a petition organised by Camden Friends of Palestine, Camden PSC, and CADFA, was scheduled to be heard. The deputation aimed to address concerns about the Fund's investments in companies contributing to or profiting from the Israeli occupation and military assault on the West Bank and Gaza. Key points raised included criticisms of the delay in undertaking an audit and producing a Responsible Investment and Conflict Zone Exposure Policy, concerns about the methodology and transparency of the audit, and a call to revise the criteria for exclusion of companies complicit in human rights violations, particularly in the defence sector. The deputation also highlighted the significant disparity between Camden's audit findings and those of the Palestine Solidarity Campaign regarding Israel/OPT linked exposure and urged for the elimination of this exposure. Finally, the deputation argued that the time for divestment measures had arrived, as engagement had largely failed to achieve its aims.