Havering Pension Fund is set to explore investing up to 10% of its assets in local opportunities, a significant increase from its previous approach. The current total value of the fund's investment portfolio is £1.18 billion, meaning 10% would equate to £118 million.
The fund's Pensions Committee met on Tuesday, September 29, 2026, to discuss an updated Investment Strategy Statement (ISS). A key element of this revised strategy is the aim to allocate a portion of the fund's investments to projects that benefit the London Borough of Havering and the wider London CIV pool area.
Councillor Liz Tyler raised concerns about the definition of local investment
and the potential for political influence. James Wilson from London CIV explained that potential investments could span areas such as housing, social housing, employment projects, and infrastructure. The London CIV pool area is defined as encompassing the 32 London boroughs and Buckinghamshire pension fund
.
The committee agreed to define local
by reference to the London CIV pool area, which encompasses the London Borough of Havering and surrounding regions. This broader definition is intended to provide a wider range of opportunities and is consistent with the pooling framework.
Mechanisms are in place to mitigate the risk of political influence on investment decisions. These include a robust governance structure at London CIV, the statutory LGPS Senior Officer role with defined responsibilities, and a collaborative approach with London CIV where they are happy to receive and unpick details of potential projects. The investment strategy itself emphasizes that local investment should be pursued as a long-term objective and that funds should not invest in unsuitable opportunities solely to achieve a target allocation. Local investments would be expected to meet the Fund's risk and return requirements and be implemented by the asset pool in accordance with the Fund's investment strategy.
The success and impact of local investments will be evaluated based on several criteria. These include quantifiable benefits to the London Borough of Havering and the geographical area of the pool, alignment with the Fund's investment objectives, fiduciary duties, and overall investment strategy, as well as appropriate risk-adjusted returns that align with the Fund's long-term return objective. Contributions to the Fund's overall balance of risk and return will also be considered. Specific impacts highlighted in the Investment Strategy Statement include supporting local employment and housing-related outcomes.
Any pensions committee decisions are reserved solely for pension committee members, who ultimately own the decision and must feel comfortable with whatever is proceeding before them. The process will involve developing individual business cases
that set out parameters, potential risks, and define what the investments relate to.
The updated draft Investment Strategy Statement (ISS) was approved for consultation. The final ISS is expected to be presented for approval and publication following the consultation at the December 2026 meeting. The allocation of funds to local opportunities will be a gradual process, with the fund aiming for a maximum allocation of up to 10% over the long term. The implementation will depend on the availability of suitable opportunities that meet the Fund's investment objectives, fiduciary duties, and risk and return requirements. The process for identifying and assessing these opportunities will involve developing individual business cases
that will come to the committee at various stages as they are ready for implementation.
See the Agenda frontsheet 29th Sep 2026 Pensions Committee, Public reports pack 29th Sep 2026 Pensions Committee, and Supplementary agenda 29th Sep 2026 Pensions Committee for more details.