The Pensions Committee of City of Edinburgh Council met on Wednesday 24 September 2025 to discuss the Lothian Pension Fund's collaboration strategy, the audited annual report and accounts, and stewardship code and engagement. The committee was also scheduled to review the fund's business plan, contracts, risk and compliance measures, and governance. Councillor Mandy Watt, Convener of the Pensions Committee, was scheduled to chair the meeting.

Audited Annual Report and Accounts

The committee was scheduled to consider the audited annual report and accounts of the Lothian Pension Fund and Scottish Homes Pension Fund. The report by Azets Audit Services was to be presented to the committee by Chris Brown, Partner, Azets Audit Services. The report was expected to confirm that work has been performed in accordance with the Audit Scotland Code of Audit Practice, International Standards on Auditing (UK and Ireland) and Ethical Standards. The report was also expected to give an unqualified opinion on the financial statements for Lothian Pension Fund and Scottish Homes Pension Fund, confirming that there were no matters which Azets were required to report by exception, and that no material adjustments have been required to the financial statements. The report was expected to state that Lothian Pension Fund has effective arrangements for financial management and the use of resources, and effective arrangements in place to ensure ongoing financial sustainability. The report was also expected to say that vision, leadership and governance arrangements at the Funds are adequate, but scope for improvements exist, and that the Funds have appropriate resources in place to meet stated outcomes and improvement objectives, through effective planning and working with strategic partners and communities. The report was expected to comment on three matters in the wider scope audit of Vision, Leadership and Governance:

• Identification by Internal Audit of one high priority recommendation in relation to the Pensions Committee effectiveness of working relationships, as well as a number of medium priority recommendations.
• A recommendation that all Board and Pensions Committee members attend the minimum number of hours of training required by the Funds' training policy.
• A review of conflicts of interest arrangements following the delay in signing the 2023/24 Annual Report and Accounts. The committee was also scheduled to note that Azets Audit Services will send the report to the Controller of Audit and that it will be published on Audit Scotland's website in due course. The committee was expected to discuss some minor disclosure and presentational adjustments that were identified during the audit and have been reflected in the final set of financial statements, and to review a draft letter of representation under ISA580¹. The committee was also scheduled to discuss the audited financial statements for the year ended 31 March 2025 for LPFE Limited and LPFI Limited, noting that the Annual LPF Group Governance Update, as reported to Pensions Committee in June 2025, provided further details on the operations of the two companies.

Stewardship Code and Engagement

The committee was scheduled to receive a report on the Stewardship Code and Engagement from Emmanuel Bocquet, Chief Investment Officer, Lothian Pension Fund. The report included the Stewardship Report as an appendix.

FY25/26 Business Plan and Budget Update

The committee was scheduled to receive a report on the FY25/26 Business Plan and Budget Update from Alan Sievewright, Chief Finance Officer, Lothian Pension Fund.

The report included a table summarising the performance indicators for the first quarter of the financial year 2025/26, including customer satisfaction, data quality, fund performance, and employee engagement.

The report also included a cashflow update, with projected figures for the next ten years.

Contracts Award and Supplier Overview

The committee was scheduled to receive a report on the Contract Awards and Supplier Overview from David Vallery, Chief Executive Officer. The report provided an overview of new contracts awarded and a review of key suppliers.

The report included a table summarising new contracts awarded between 1 July 2024 and 30 June 2025, including contracts with Bridewell Consulting Ltd for cyber security consultancy and threat landscape services, CEM Benchmarking Inc for investment management performance and cost monitoring and reporting services, Elephants Don't Forget Ltd for training services, Heywood Pension Technologies for pension dashboard ISP and data cleanse, Hymans Robertson LLP for a learning hub, Spotless Commercial Cleaning Ltd for office cleaning, and BestX Ltd for FX audit.

The report also included a table summarising new contracts awarded by waiver of CSOs², including contracts with Ernst & Young LLP for Taiwanese WHT reclaims and application of tax relief at source, MSCI Inc for macro research, Altus Group Ltd for portfolio management services, and Hymans Robertson LLP for creation of equity universe filters and associated analysis to support fossil fuel divestment.

The report also included a table summarising contract extensions awarded to CBRE Limited for property valuation services and Jones Lang Lasalle Limited (JLL) for property management and fund accounting services.

The report also included a table summarising tier 1 suppliers, including Bloomberg Finance LP, Cased Dimensions Ltd, Charles River Development, Heywood Pension Technologies, Hymans Roberston LLP, and Northern Trust Corporation.

Risk and Compliance Update

The committee was scheduled to receive a Risk and Compliance Update from Kerry Thirkell, Chief Risk Officer, Lothian Pension Fund.

The report included a summary of the LPF Group's Risk Register, noting the total number of risks, the number of new risks, the number of risks with decreasing, increasing, or stable ratings, and the number of deleted risks. The report also noted the risk rating for each risk.

Quarterly Governance Update

The committee was scheduled to receive a Quarterly Governance Update from Kimberley Russell, Company Secretary, Lothian Pension Fund.

The report included the proposed future agendas for the Pensions Committee and the Pensions Audit Sub Committee, and a training log for 2025/26.

The report also included a letter from the Scottish LGPS Scheme Advisory Board, regarding resourcing for effective pension fund delivery.

Private Business

The committee was expected to consider three items in private: an Employer Covenant Review, Employers Participating in Lothian Pension Fund, and Overpayment of Pension.