The Pensions Investment Committee of Lewisham Council met on Thursday 11 June 2026 to discuss the pooling of pension fund investments with London CIV, review the fund's financial performance and risk register, and agree the annual business plan. Key decisions included noting the progress of investment pooling, approving the annual business plan, and reviewing the risk register.

Pooling Update Report

The committee received an update on the transition of the Lewisham Pension Fund's investments into the management of London CIV (LCIV), the authorised asset pooling company established by London local authorities. This transition, which was a requirement of the government's Fit for the Future reforms, means that 100% of the Fund's assets are now managed by LCIV. The committee noted the pooling reforms timeline, pension regulations, the LCIV draft implementation plan, and business and fund manager updates.

Introduction to the London CIV

Representatives from London CIV provided an overview of the organisation, its role in pooling LGPS assets, and its approach to investment. They explained that London CIV supports 33 local authorities, managing approximately £60 billion in assets. The committee engaged with the representatives, asking questions about the organisation's structure, its responsible investment approach, and its role in implementing investment strategies.

A significant portion of the discussion focused on responsible investment (RI) and the potential for exclusions. Councillor Ed Sutton, Chair of the committee, raised concerns about investments in companies such as the Israeli Discount Bank and Palantir, citing human rights organisations' conclusions regarding Israel's actions in Palestine. He questioned the practical steps for implementing an exclusion approach using specific monitoring sources. The LCIV representatives explained their pillared approach to exclusions, which is still being finalised with legal counsel, and highlighted the complexities of excluding companies from passive funds.

Councillor Heather Farnworth questioned the force of a Minister of State's letter advising against local authorities adopting investment policies different from the UK government. Jeremy Chambers, Monitoring Officer, clarified that the Council would always operate within the law and seek external advice on the lawful interpretation of government guidance.

The committee also discussed the scope for investments in social housing, with LCIV confirming its UK Housing Fund has a specific social mandate. The potential for investments in AI companies and the associated risks of an AI bubble were also raised.

General Update Report - Part One

Catherine, presenting the general update report, highlighted key items including the draft pension fund accounts for 2025/26. The report indicated strong financial performance, with net assets increasing by 8.3% to over £2 billion. However, the fund remains cash flow negative, a situation exacerbated by reduced employer contributions following a strong triennial valuation. The administration team's update included progress on the government-mandated single dashboard for pension funds and the launch of a new member self-service portal. Investment performance for Q1 2026 was broadly in line with the benchmark, returning 7.2% per annum, though geopolitical instability and exposure to volatile equity funds were noted as risks. The report also outlined training requirements for committee members, emphasizing the need to meet new regulations and the Pension Regulator's toolkits within three months of taking office. An update on the Pension Board, which provides an oversight and assurance role, was also noted.

The committee agreed to the recommendations in the report, noting the draft accounts, administration updates, investment updates, training requirements, and the Pension Board update.

Annual Business Plan 2026/27

Catherine presented the proposed Annual Business Plan for the Lewisham Pension Fund for 2026/27. The plan outlines the committee's work plan, including policies and plans with review dates, training details, and administration targets. The committee was asked to agree the plan, with a commitment to review its structure in light of new governance regulations. The committee agreed to the Annual Business Plan.

Risk Register Review

The committee reviewed the Pension Fund's risk register, which is updated twice a year. The report indicated that the overall risk profile remained stable, with many risks remaining stable or improving. Key risks highlighted included investment pooling risk, liquidity risk (which has increased due to higher pension payments and lower contributions), cybersecurity risk, and ESG and climate-related risks. Councillor Kate Anderson raised concerns about the uncertainty surrounding pooling arrangements and meeting net zero commitments, and asked for clarification on enhanced reporting requirements. The LCIV representatives confirmed their alignment with the 2040 Net Zero target for public market assets and discussed their reporting capabilities. The committee reviewed the risk register and suggested amendments as necessary.

The committee noted the date of the next meeting on 15 October 2026 and reviewed the programme of work for the coming year.

The meeting concluded with the exclusion of the press and public to discuss exempt information related to the General Update Report - Part Two.