The Lambeth Council Pensions Board met on Thursday 30 October 2025 to discuss the pension fund's performance, administration, and risk management. The board was scheduled to review the draft annual report, investment performance, and a general update on various pensions-related matters. The meeting also included discussion of the risk register and the business plan tracker.

Draft Annual Report 2024/25

The Pensions Board was scheduled to consider the draft annual report for 2024/25. The report included the draft statement of accounts, prepared according to the Chartered Institute of Public Finance and Accountancy (CIPFA) code. According to the report, the external auditors, Forvis Mazars, had yet to formally begin their audit of the accounts.

The draft accounts showed that the total net assets of the fund remained static, increasing by £0.8m to £1,800m. Income from contributions and transfers totalled £78.9m, while £88.1m was paid out in benefits and transfers. Investment income was £75.1m, offset by a £54.7m loss due to a reduced market value of the fund's assets.

The draft annual report included sections on:

• Scheme management and advisors
• A report from the Chief Financial Officer
• A report from the Pensions Committee Chair
• A report from the Pensions Board Chair
• Risk management
• Investment strategy
• Financial performance
• Administrative performance
• An actuarial report on the fund
• A governance compliance statement
• A funding strategy statement
• An investment strategy statement
• A communications policy statement
• An additional compliance statement
• A statement of responsibilities
• An independent auditor's statement

Investment Performance Report - Quarter 2 2025

The Pensions Board was scheduled to review the investment performance for the quarter ending 30 June 2025. According to the report, the market value of the fund's assets was approximately £1,859.8m, an increase of 3.4% on the previous quarter. The fund's assets performed just above the benchmark in the quarter, returning 3.4% against a benchmark of 3.3%. All three of the fund's equity funds performed above benchmark, while the main detractors to performance were the two Invesco property funds, Churchill private debt, and Adams Street private equity.

The report noted that the second quarter of 2025 was characterised by tariffs and geopolitical conflicts. Most developed market central banks continued to cut rates amid uncertainty over growth and inflation.

As at 30 June 2025, the fund had underperformed in the one, three, and five-year periods. The report also included a breakdown of the fund's UK exposure within existing mandates.

General Update

The Pensions Board was scheduled to receive a general update on several pensions-related matters. This included updates on the London Collective Investment Vehicle (LCIV), the government's Fit for the Future consultation, a governance review, the Pension Fund accounts, and board elections.

The update also covered the Palestine Solidarity Campaign's (PSC) concerns regarding investments in companies involved in breaches of international law. According to the report, the Scheme Advisory Board (SAB) had written to the Local Government Minister requesting a view from the government to help provide clarity to the LGPS on whether a specific legal liability may arise through holding conflict-related investments.

The general update also included suggested training and events for board members, as well as a training log.

London CIV Funding and Fee Savings

As at 30 June 2025, the London CIV had approximately £19.9bn of assets under direct management. The estimated net fee savings for the quarter were £409k.

Fit for the Future Outcomes

The Pension Schemes Bill continued to pass through Parliament. Officers were scheduled to continue working with the LCIV in respect of the transition of off-pool assets by the target deadline of March 2026.

Governance Review Update

Hymans Robertson were commissioned to undertake a governance review of the fund. The first part of the review considered the fund team structure, which was completed at the end of September 2025 and was being considered by the senior leadership team.

Pension Fund Accounts 2024/25

The updated draft council accounts, incorporating the pension fund accounts, were published on 15 July 2025. The external audit was expected to begin in mid-November 2025.

Board Elections

The recent election to the Pensioner Representative on the board concluded on 2 October 2025 with the successful reappointment of Ann Biddle.

Training

The report included a selection of upcoming external conferences, workshops and other training opportunities.

Risk Register Update

The Pensions Board was scheduled to review and note the Lambeth Pension Fund Risk Register. The register identifies risks and the actions required to mitigate their potential impact. According to the report, the latest risk register was in line with Lambeth Council's Corporate Risk Register format.

Each risk within the register is assigned three ratings: inherent, current, and target. Each risk is assessed in terms of the likelihood of it occurring and the potential impact of the risk should it occur. The individual scores against those criteria are multiplied to produce an overall risk score which is then used to categorise the risk rating at high, medium, or low, indicated with a Red, Amber, Green (RAG) rating.

According to the report, there were no red-rated risks and seven amber-rated risks (current risk ratings). The seven risks were summarised as:

• Insufficient resource to support requirements and demands of Pension Committee and Board
• Insufficient knowledge and understanding of Pension Board/Committee in line with legislative requirements
• The risk that pay and price inflation is significantly more than anticipated
• Investment risk
• Investment underperformance
• Climate change
• Qualified audit opinion of the Fund's financial statements

Since the register was last presented to the Pensions Board on 23 July 2025 there had been no changes to current risk ratings.

Pensions Administration Performance Report - July 2025 to September 2025

The Pensions Board was scheduled to review the performance of the Lambeth Pensions Administration Service for the period July 2025 to September 2025. According to the report, the total membership size of the scheme cohort as of 30 September 2025 was 22,170. The total number of cases completed on the pensions software system (Altair) in this quarter was 1,648.

The report also included updates on:

• Member engagement
• Employer engagement
• The 'Engage' – Member Self Service platform
• The Lambeth Pension Fund website
• Breaches of the law
• Complaints and compliments
• The Internal Dispute Resolution Procedure
• The risk register
• Pensions opt out rate analysis
• Progress update on McCloud Remedy Implementation¹
• Pensions Dashboard Update

Business Plan Tracker 2025/26

The Pensions Board was scheduled to review the business plan tracker for 2025/26.