The Bexley Council Pensions Committee scheduled a meeting to discuss the administration and financial performance of the Bexley Pension Fund. The agenda included a review of the fund's annual report, quarterly performance, and investment strategy. Councillors were also expected to review the results of a survey on investment beliefs and strategic asset allocation.

Annual Report 2024-25

The committee was scheduled to consider the Pension Fund's draft annual report for 2024/25. The report includes information on the fund's management and financial performance, investment policy, actuarial valuation, funding positions, annual accounts and financial statements, as well as policy documents relating to governance, funding, investment, communications and responsible investment.

According to the report, the fund recorded a net increase of £6.4 million in 2024/25, compared to £62.7 million in 2023/24. The report attributes the lower growth to weaker equity performance and a strategic decision to de-risk by reallocating assets from global equities to fixed income. The fund's return in 2024/25 was 2.7%, which the report notes was lower than the universe average fund, and placed the fund in the lower quartile compared with other LGPS funds.

The report also notes that the fund continued to invest in the London Collective Investment Vehicle (LCIV) Renewable Infrastructure Fund, LCIV Infrastructure mandate, and Partner's Group private equity, and that Bexley has one of the highest proportions of LCIV pooled assets versus other London LGPS funds. It estimates that the fund has achieved cumulative net savings of £3.864 million since it started asset pooling with LCIV in 2017.

The report states that there were 76 active employers in the fund at the end of March 2025, a net decrease of one over the year. Membership numbers were:

• 6,044 active employees
• 6,497 pensioners
• 5,284 deferred pensioners

The report also states that officers are monitoring the fund's cash flow position to ensure that it can meet its pension liabilities in a timely manner.

Quarterly Financial and Fund Management Update

The committee was scheduled to receive an update on the Pension Fund's management for the quarter ended 30 June 2025. This included the cash flow position, risk register and the status of the LCIV.

According to the report, the balance across all Bexley Pension Fund bank accounts was approximately £21 million at the end of June 2025. The top five risks to the fund were reported to have remained the same, with slightly different scoring, and the fund was reported to be 53% pooled through the LCIV (72% including passive holdings).

Pension Fund Investment Performance

The committee was scheduled to consider a summary of the investment performance of the Bexley Pension Fund and its investment managers for the quarter ending 30 June 2025.

According to the report, the fund's overall performance underperformed its benchmark by 1.27% for the year. This was attributed to poor performance within the illiquid markets. The report notes that performance is measured against an overall strategic benchmark, and that each fund manager is given individual performance targets linked to index returns for the assets they manage.

The report also states that the value of the fund's investments as of 30 June 2025 was £1.05 billion, an increase of £19.8 million, representing a 1.92% change.

Investment Beliefs and Strategic Asset Allocation

The committee was scheduled to discuss the timeline for the strategic asset allocation review and the results of the investment beliefs survey.

According to the report, an investment beliefs survey was circulated to members and officers in July 2025 to determine a set of core investment beliefs to inform future investment strategy. The survey asked stakeholders for their views on the fund's primary objectives, investment return, risk, responsible investment, and the government's 'Fit for the Future' consultation.

The survey found mixed responses on the primary objective of the fund, but with greatest importance placed on maintaining the current fully funded position over time. Respondents indicated they would be comfortable with a risk ceiling of 5-10% of assets, and agreed that further complexity could be taken if needed to ensure the fund's strategic goals and objectives. Stakeholders held favourable views towards responsible investment, and positive views towards increased UK investment as long as this is aligned with the fund's broader investment objectives.