Agenda item

This paper provides the Pension Fund Committee with a summary of the Pension Fund’s overall performance for the quarter ended 31 December 2024.

Phil Triggs (Director of Treasury and Pensions) provided a summary of the Fund’s performance for the quarter ended 31 December 2024 and cashflow update, including forecast.

Councillor Florian Chevoppe-Verdier referring to the staff changes at the London CIV (LCIV), noted that this was still marked as a risk and an area of concern. He requested further clarification on the matter. In response Phil Triggs noted that the LCIV had appointed a new Chief Investment Officer with extensive experience and a strong track record. Officers were reasonably optimistic about LCIV’s current position.

Sam Gervaise-Jones (Independent Investment Advisor) echoed Phil’s comments, expressing reassurance about the current staffing, who understood the pressures from all angles within the LCIV. He emphasised that ensuring proper oversight, reporting, governance and engagement would be a key priority for the council moving forward. While he generally felt optimistic, he acknowledged the need for caution.

Jonny Moore (Isio Group), explained that, from Isio’s perspective, this was a pivotal time for the LCIV as it transitioned to the new normal. He felt that the outlook was positive from a personnel standpoint but emphasised the need for regular monitoring.

Councillor Ashok Patel asked whether there should be any concerns regarding the investment in Darwin Alternatives, given that the fund underperformed its target by 36.6% last year and remained locked in until 2023. In response Jonny Moore noted that a more detailed analysis of Darwin was provided in the exempt appendix. He explained the reasons behind the fund’s decline over the past year, highlighting a 25% write down to the Net Asset Value, Q3 2024. He also outlined potential disinvestment options but stated that, at present, the best course of action was to closely monitor the fund.

Phil Triggs (Director of Treasury and Pensions) suggested inviting Darwin to the next meeting to provide a presentation on the fund’s current position and allow members to ask questions. The Chair welcomed this opportunity.

Action: Phil Triggs

RESOLVED

That the Pension Fund Committee noted the update.