The Hackney Council Pensions Committee convened to discuss investment strategies, responsible investment, and the fund's overall performance. Key decisions included approving recommendations for investment strategy training, updating the voting policy, and endorsing the investment strategy review process. The committee also addressed the allocation of resources and future investment approaches, ensuring alignment with regulatory requirements and the fund's objectives.

External Fire Safety Remedial Works

The Cabinet Procurement and Insourcing Committee approved the procurement of specialist external wall consultants to carry out PAS 9980:2022¹ assessments, alongside the procurement of Principal Contractors to undertake any necessary remedial works to external wall systems identified through these assessments.

The decision was made in order to access government funding and meet statutory duties under the Fire Safety Act 2021² and the Fire Safety (England) Regulations 2022³.

The approved plan includes:

• A 48-month contract awarded to up to two external wall consultants to carry out fire risk assessments across the council’s residential blocks, manage grant applications with the Ministry of Housing, Communities and Local Government (MHC&LG), and support contractor procurement. The budget for this is £5.6m (£6.75m inc VAT).
• A 12-month contract awarded to one principal contractor to carry out external fire risk remedial works across the council’s residential blocks.
• Procurement of a 4+2 year Framework Agreement of up to three Principal Contractors to undertake remedial works identified as necessary following completion of the PAS 9980 assessments. The combined sum for these contractors is £80m (£96m inc VAT).
• Procurement of a Principal Designer through the establishment of a Framework, with the intention of insourcing these roles over time. The budget for this is £2m (£2.6m in VAT) and Building Safety Act Principal Designer 2022.

The committee also approved the use of government funding, available until September 2029, to deliver the full scope of assessments and remedial works.

F S510 Capital Update and Property Disposals And Acquisitions

The Cabinet approved several schemes and property transactions.

Approved schemes:

• Hackney Downs Park Basketball Courts and Multi Use Games Area (MUGA) refurbishment: £105k in 2025/26 for upgrades.
• Shacklewell Primary School Roof Replacement and Solar Installation: £120k in 2025/26 to fund roof recovery, associated works, and installation of a photovoltaic (PV) solar system.

Approved property disposals:

• 18 London Lane, 20 London Lane, and 13a Englefield Road.
• Part of Public Library Record Centre and Archives Store, Roseberry Place and Beechwood Road (also known as 14 Dalston Lane).
• Land at Pearson Street.

Approved property lease:

• Granting of a new fifteen-year lease of the ground floor and basement of 96–98 Leonard Street EC2 to Disco Wheel Ltd.

Approved property purchase:

• 161 Queen's Drive, N4 2AR.

The council is disposing of 18-20 London Lane, 14 Dalston Lane and Land at Pearson Street because retaining these properties in the Commercial portfolio no longer represents best use, and their sale offers potential for the Council to utilise capital receipts, with the appropriate permissions, to fund invest to save and transformational revenue spend.

Letting 96-98 Leonard Street to Disco Wheel Ltd will secure a new tenant for a currently vacant Council asset, bringing it back into productive use and generating income for the General Fund.

The purchase of 161 Queen’s Drive, N4 2AR will add 34 units to the amount available for temporary accommodation within Hackney and within the Council’s ownership.

Investment Strategy Training

The committee noted a report and presentation from Redington, the Fund's Investment Consultant, regarding investment strategy training, which focused on regulatory and fiduciary responsibilities, risk management, and pooling approaches. The training also covered the current strategic asset allocation and aligning the Fund's objectives.

The Investment Strategy Training slides provided an overview of key areas:

• Regulatory Responsibilities: Ensuring compliance with regulations and acting in the best long-term interests of scheme beneficiaries.
• Risk and Return: Balancing sufficient return to meet long-term needs with minimizing exposure to market falls.
• Efficient Return Achievement: Considering income generation, sustainability, regulatory guidance, and the market environment.
• Current Strategic Asset Allocation (SAA): Analysing funding levels, expected returns, discount rates, and potential risks.
• Investment Strategy Setting: Aligning with objectives and focusing on areas that make a real difference.

Investment Strategy Review and Scene Setting

The committee considered the recommended strategy review process and agreed to complete the Investment Belief Survey, as detailed in the Strategy Review - Scene Setting & Investment Belief Setting report. The review aims to assess the current asset allocation, reflect government-led LGPS changes, incorporate climate and sustainability objectives, incorporate local investment allocation decisions, and evaluate new investment opportunities.

The investment strategy review process includes:

• Research: Understanding investment principles, beliefs, and objectives.
• Objectives: Translating findings into quantifiable objectives.
• Strategy: Developing strategic asset allocation advice.
• Implementation: Identifying the best asset allocation categories within the LGPS template.
• Evaluation: Creating a monitoring process to ensure the strategy aligns with objectives.

The survey questions cover investment objectives, investment risk, investment strategy, local investment, and responsible investment.

Voting Policy

The committee approved the updated Voting Policy, noting the impact of pooling on voting of Fund shares. They agreed to delegate the procurement of a dedicated voting provider for the Fund’s passive manager to the Group Director Finance and Corporate Resources in conjunction with the Chair. The committee also agreed to engage the Local Authority Pension Fund Forum (LAPFF) to deliver periodic enhanced engagement on Conflict Affected areas and High-Risk Areas (CAHRAs) reporting on behalf of the Fund.

Internal Audit Report - Pension Fund Investments

The committee noted the Internal Audit Report - Pension Fund Investments, which provided assurance on the adequacy and effectiveness of controls to ensure that Pension Investments are effectively managed and to assist in mitigating major risks. The audit opinion issued was of Significant Assurance, indicating a sound system of governance, risk management, and control.

London Collective Investment Vehicle (LCIV) B Shares Subscription

The committee noted the contribution of £70,312 for 70312 £1 B Shares in proportion to the existing shareholding into the London CIV to meet the required Regulatory Share Capital.

The Terms of Reference of the Planning Sub-Committee for the Municipal Year 2025/26

The committee noted the Corporate Committee Terms of Reference, as set out in Part 3, paragraph 3.3.5 of the Council’s Constitution.