The Pensions Committee of Hackney Council met on Monday 27 July 2026 to discuss the review of the council's responsible investment policy, receive an introduction to London CIV and the implications of the Fit for the Future reforms, and undergo training on investment strategy, asset allocation, and stewardship. Key decisions included the formation of a Responsible Investment Working Group and the approval of the unrestricted minutes from the previous meeting.

Responsible Investment Policy Review and Working Group

A significant portion of the meeting was dedicated to the review of Hackney Council's responsible investment and engagement policy. Susanne Rasuli, a local resident and member of the Hackney Palestine Solidarity Movement, submitted a question regarding the progress and timeline of this review. Councillor Izzy Castello-Cortez, Chair of the Pensions Committee, explained that the review is being undertaken in light of the new administration and aims to align the policy with ethical investment standards and members' consultation feedback.

To facilitate this review, a Responsible Investment Working Group was established. The nominated core members of this group are Councillor Izzy Castello-Cortez (Chair), Councillor Cathy Troupp (Vice Chair), Councillor Florence Schechter, Councillor Zoe Holman, Councillor Ifat Shekhin, and Councillor Charlie Laurie. Jonathan Malins-Smith, Scheme Member Representative, was also confirmed as a member of the working group. This group will meet to review the current policy and provide recommendations to the committee. The ideal deadline for the completion of this review was set as 30 September 2026.

Introduction to London CIV and Fit for the Future Reforms

Jenny Buck, Chief Investment Officer at London CIV, and Wazul Moha, Client Relations Manager at London CIV, provided an introduction to London CIV and the significant changes brought about by the Fit for the Future reforms within the Local Government Pension Scheme (LGPS) landscape.

The Fit for the Future reforms, which came into force on 30 June 2026, mandate that all LGPS assets must be managed through FCA-regulated pooling companies. London CIV, as the investment pool for London boroughs and Buckinghamshire, will now be responsible for the implementation of investment strategies, including principal strategic asset allocation advice, investment implementation, portfolio design, responsible investment implementation, and the delivery of local investment. Partner Funds, such as Hackney Pension Fund, will retain responsibility for setting their Investment Strategy Statement (ISS), high-level Strategic Asset Allocation (SAA), Responsible Investment (RI) approach, and local investment policy.

The committee received detailed training on the implications of these reforms, including the division of roles and responsibilities between the partner funds and the pools. The presentation covered London CIV's approach to pooling, which emphasizes fiduciary duty, choice, and value, and outlined the new governance standards and the requirement for partner funds to set out their policy with respect to local investments.

Training on Investment Strategy, Asset Allocation, and Stewardship

The committee also underwent training sessions on key aspects of pension fund management.

Investment Strategy and Asset Allocation: Sam Yendall from Gallagher, the investment advisor, led a session on the investment strategy and asset allocation. This training covered the long-term nature of pension fund liabilities, the importance of balancing contributions with investment returns, and the current strong funding level of the Hackney Pension Fund, which stands at 138%. The session detailed the fund's risk management framework, including objectives for return, risk, liquidity, cash flow, responsible investment, and local investment. The strategic asset allocation was broken down into nine asset class buckets, including listed equity (45%), private equity, private credit, property, infrastructure, other alternatives, credit, UK government bonds, and cash. The training also touched upon the fund's progress against climate targets, with a 48.1% reduction in Scope 1 and 2 carbon emissions per £m of assets achieved against a target of 50% by 2030. Progress on local investment was noted as being at 0.5% of total assets, with a target of 3-5% over time.

Introduction to Stewardship: David Crum and Thomas Bolger from Minerva Analytics provided training on stewardship. They explained that stewardship involves the responsible allocation, management, and oversight of capital to create long-term sustainable value. Key activities include voting at company meetings, engaging with investee companies, and monitoring their progress. The training highlighted that while pooling has shifted the implementation of stewardship to London CIV, the committee retains overall responsibility for setting the responsible investment policy and providing oversight. The session also covered the role of Environmental, Social, and Governance (ESG) factors in investment decisions and how stewardship actions, such as voting and engagement, can influence companies. The challenges of applying stewardship to non-listed assets were also discussed.

Other Matters

The committee also noted the unrestricted minutes of the previous Pensions Board meeting held on 26 March 2026. A question was raised regarding the progress of filling a vacant employer representative position on the Pensions Board, with officers confirming that outreach to employers was ongoing.

The meeting concluded with the approval of the unrestricted minutes of the previous Pensions Committee meeting held on 24 June 2026.