The Merton Council Pensions Committee met on 26 June 2025 to discuss the performance of the pension fund, including a quarterly review and updates from investment managers. The committee was also scheduled to discuss the fund's administration performance and future meeting dates. Some of the discussion was expected to take place after the exclusion of the public.

Quarterly Performance Review

The committee was scheduled to discuss the Merton Pension Fund Performance for the quarter ending March 2025. The report pack included a Fund Analysis & Performance Report produced by Hymans Robertson, the fund's investment and performance consultants.

The report noted that the fund's total assets decreased from approximately £964 million to £956 million during the quarter.

The report included a performance summary:

The Fund recorded an absolute return of -0.5% during Q1 2025, underperforming its aggregate benchmark by -1.0%. Over the longer time periods of 12 months and 3 years, the Fund has lagged its benchmark with relative returns of -2.1% and -3.2% p.a. respectively.

Compared to the actuarial target of 4.2%, the fund underperformed the benchmark over 3 months, was broadly in line with target performance over 12 months, but has lagged over the 3-year period.

The report also included a market background and outlook, noting that the UK base rate had been reduced to 4.5%. It also noted that global equity markets diverged sharply in Q1 2025 due to regional dynamics and policy responses.

The report pack included a London Borough of Merton - IMR Q1 2025 Lite report from Nicholas Jellema, Partner at Hymans Robertson LLP, which provided a dashboard summary of the fund's performance, market background, strategy/risk, managers, and LGPS¹ focus.

The report noted that most asset classes remained near their target weightings, with infrastructure being the most overweight class relative to its benchmark.

Exclusion of the Public

The agenda included a resolution to exclude the public from the meeting during consideration of the following reports on the grounds that they are exempt from disclosure:

• Minutes of the previous meeting (exempt)
• Quarterly Fund & Investment Managers Performance Review (Jan-Mar 25)
• Update from the Pool LCIV
• Merton Pension Fund Administration Performance (April 2024 to March 2025)

The reason given for the exclusion of the public was paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972².

Previous Minutes

The committee was scheduled to approve the minutes from the previous meeting held on 20 March 2025. The minutes record that the committee was informed that over the 3 months to 30 December 2024, the Funds' assets returned 0.8% compared to the benchmark of 0.6%. The Fund's total market value increased by £16.6m over the quarter, from £947.3m to £963.9m. The minutes also record that the committee discussed the Audit Plan 2024/25 presented by Kevin Sutter from Ernst & Young.