The Pensions Committee of Hillingdon Council met on Wednesday 24 September 2025 to discuss the administration and performance of the Hillingdon Pension Fund, its investment strategy, responsible investment policies, and the fund's risk register. The meeting also covered governance matters and reviewed restricted minutes from a previous meeting.

Administration Report

The committee was scheduled to receive an update on the administration activities and performance of the Hillingdon Pension Fund, which is managed in partnership with Hampshire County Council through Hampshire Pension Service (HPS). The report was expected to detail performance against Key Performance Indicators (KPIs), including membership growth, case completion times, and member portal engagement. It was also anticipated to cover the progress on the backlog of historic leaver cases and the development of online services and cybersecurity measures. The report was expected to highlight that 100% of administration cases were completed within Service Level Agreement (SLA) timelines and that over 53% of members were registered on the Member Portal.

Investment Strategy and Fund Manager Performance

A report was scheduled to provide an update on the Hillingdon Pension Fund's investment strategy and the performance of its fund managers. This included a summary of the fund's funding level, which was reported as remaining unchanged at 127% with liabilities decreasing by £10 million. Pension assets were noted to have decreased in value by 1.36% in the quarter, resulting in a quarterly return of -1.4%, slightly below the benchmark. The report was expected to include an executive summary from LCIV (London CIV) detailing the funding and liabilities, pension assets, and investment performance for the quarter ending 30 June 2025. It was also to provide an economic and markets update for Q2 2025, covering global and UK economic conditions, equity and fixed income performance, and currency movements. Manager contributions, both positive and negative, were to be detailed, alongside an assessment of investment managers based on skills and value propositions.

Responsible Investment

The committee was scheduled to review an update on the fund's responsible investment activities. This report was intended to provide information on how the fund managers are implementing their Environmental, Social, and Governance (ESG) policies and integrating them into their investment processes. The update was expected to cover progress on the UK Stewardship Code project, policy updates, and proxy voting statistics. It was noted that LGIM voted against management resolutions 23% of the time, and examples of proactive engagement by fund managers with companies such as Rio Tinto and Persimmon were to be highlighted. The report was also to detail engagement activities undertaken by LAPFF (Local Authority Pension Fund Forum) on environmental, social, and governance issues.

Risk Register Report

A report on the Pension Fund Risk Register was scheduled for discussion. This report was expected to outline the risks facing the fund, classified using the Council's risk management software, JCAD, into open and closed categories. The report was to propose the closure of the risk related to liquidity on member dealings (PEN 10), as it had been managed effectively for ten years. The report was also to detail the six open risks that remain static from the previous quarter, including Cyber Security (PEN 7), Liquidity on asset management (PEN 9), Failure of the pool in management of funds (PEN 11), Failure of the Fund's governance to comply with statutory requirements (PEN 12), Key officer risk (PEN 13), and Failure of employers to deliver accurate and timely employee administration information (PEN 14).

Governance

The committee was scheduled to consider the Governance report, which included the work plan and governance updates. The work plan was to outline future discussion items and include updated appendices and rescheduled policy review dates. The report was expected to highlight the importance of members understanding their Local Government Pension Scheme (LGPS) fiduciary role and complying with upcoming legislation requiring training. A revised discretion policy was also to be presented for approval. The report was to note that the General Code of Practice compliance timeline had been extended to March 2026 due to personnel limitations.

Restricted Minutes from Meeting on 26 March 2025

The committee was scheduled to approve the Part II minutes from the meeting held on 26 March 2025.

Investment Part II - Strategy Review and Manager Updates

This item was scheduled to be discussed in private, as it was expected to contain confidential or exempt information relating to the financial or business affairs of particular persons.

Business Plan and Budget 25/26 & Budget Update 24/25

This item was also scheduled to be discussed in private, as it was expected to contain confidential or exempt information relating to the financial or business affairs of particular persons.