The Royal Borough of Greenwich Pension Fund Investment & Administration Panel met to discuss the fund's business plan, audit strategy, and manager performance. The panel also considered the impact of the Pension Schemes Bill and reviewed early retirements. Members were also scheduled to receive training on audit and accounting standards.

Pension Schemes Bill

The panel was scheduled to note the expected impact of the Pension Schemes Bill on the fund. The bill, introduced on 5 June 2025, was expected to bring significant changes to pooling arrangements, affecting the fund's asset pool, specifically the London Collective Investment Vehicle (LCIV). The bill emphasises local investment strategies to drive economic growth within the UK, requiring adjustments to the fund's current investment approach, and proposes enhanced governance measures, necessitating updates to the fund's governance structures to ensure compliance and optimal performance.

The report on the Pension Scheme Bill that was prepared for the meeting noted that:

The government published its response to its LGPS: Fit for the Future consultation on 29 May. This confirmed the government's planned route forward on pooling, local investment and governance, and these points have been reflected in the Bill.

The report also set out some practical considerations, including that the panel will retain responsibility for setting the fund's high level investment strategy, including strategic asset allocation, approach to responsible investment and to local investments. It also noted that from 31 March 2026, LCIV will be responsible for deciding which assets to buy, sell or hold in order to deliver the agreed investment strategy, as well as launching new funds to meet evolving needs.

Fund Manager Performance

The panel was scheduled to review a report on the performance of the Royal Borough of Greenwich Pension Fund's investment managers for the period ending 31 March 2025.

According to the Fund Manager Performance report, the fund's assets increased by circa £3.6m during Q1 2025, from £1,696m to £1,699.7m. The LCIV Absolute Return Fund and BlackRock UK Equity Fund were the largest positive contributors in absolute terms, but the LGIM Future World Global Equity Fund emerged as the largest detractor from performance in absolute terms, primarily due to market conditions that adversely affected global equity investments.

The report noted that the returns over the quarter were:

• The BlackRock UK Fund returned 3.5%, against a benchmark of 4.1%.
• The BlackRock Global Fund returned 1.3%, against a benchmark of 1.2%
• The LGIM Low Carbon Future World fund returned -4.5% against a benchmark of -4.5%.
• Fidelity's Global Emerging Market Equity fund delivered a negative return, a return of -2.5%, against a benchmark of -0.2%.
• Fidelity's Multi-Asset Credit fund underperformed the benchmark, delivering a return of -1.7%, against a benchmark of 0.7%.
• Fidelity's UK Aggregate Bond fund slightly outperformed, returning 0.8% against a benchmark of 0.6%.
• CBRE Property Fund underperformed, returning 1.5% against a benchmark of 1.5%.
• Partners Group delivered a return of -0.3% over the quarter, underperforming its benchmark of 1.8%.
• The LCIV Absolute Return Fund underperformed, returning 3.9% against a benchmark of 1.9%.

Pension Fund Business Plan

The panel was scheduled to agree the Pension Fund Panel's Business Plan for 2025/26. The plan provides a schedule of work that will take place over the next 12 months.

According to the Business Plan 2025-26 report, the plan reflects the Pension Panel's commitment to put into action the investment strategy and monitor procedures for the future to ensure that the Fund meets its objectives and complies with best practice.

The Pension Fund Panel's Business Plan for 2025/26 sets out the proposed agenda for the year, with key focuses including a review of next steps in relation to the Pension Schemes Bill and the Triennial Valuation¹.

Audit Strategy Memorandum

The panel was scheduled to note the Pension Fund Audit Strategy Memorandum (ASM) for 2024/25 accounts.

According to the Audit Strategy Memorandum 2024-25 report, Forvis Mazars were appointed as the external auditor for the Pension Fund in March 2024, and the ASM assists in understanding the consequences of the auditors' work, discussing issues of risk, the concept of materiality², and identifying any areas where the Panel may request the auditor to undertake additional procedures. The proposed audit scale fee for 2024/25 was scheduled to increase to £102,448 from £99,079 for 2023/24.

Early Retirements

The panel was scheduled to note a report on early retirements covering the period 1 October 2024 to 31 March 2025 and review the financial effect.

According to the Early Retirement Report, during the period 1 October 2024 to 31 March 2025 there were 94 early retirements, 9 of which resulted in a strain on the Fund. The impact of the fund was calculated to be £812,640 using factors provided by the fund actuary.

Training

The panel was scheduled to receive training from Kenny Taylor of Hymans on Audit and Accounting Standards, and to undertake a paper-based quiz in relation to the training.

Other Matters

The agenda also included:

• Declarations of interest - to note the list of councillors' memberships on outside bodies, joint committees and school governing bodies, and to request that members orally declare any personal or financial interests in items on the agenda.
• Minutes - to confirm as an accurate record the minutes of the meeting held on 17 March 2025.