Lewisham Pension Fund Reports Strong Growth Amidst Market Challenges
The Lewisham Pension Fund has reported a significant increase in its net assets, growing by £155 million, or 8.3%, to approximately £2.036 billion during the 2025/26 financial year. This positive performance was achieved despite ongoing global conflicts and a maturing membership profile, which contribute to increased fund liabilities.
The draft Pension Fund Annual Report for 2025/26 was approved by the Lewisham Pension Committee at its meeting on Thursday, 15 October 2026. The report details the fund's financial performance and activities over the past year, with publication scheduled by the statutory deadline of December 1st.
Katharine Nidd, Director of Finance, presented the draft annual report, attributing the fund's growth to strong performance across various asset classes, including equities, fixed income, renewable infrastructure, property, and private debt. However, the report also highlights that the fund is now cashflow negative due to its member profile and reduced employer contributions. This, coupled with the increasing liabilities from a maturing membership and global uncertainties, underscores the critical importance of the fund's investment strategy.
Key risks and challenges identified in the draft annual report include geopolitical instability, inflation, and market volatility, all of which continue to pose significant threats to investment performance. The fund's notable exposure to equities, while contributing to growth, also presents a risk due to its inherent volatility. The maturing membership and increasing liabilities are also key concerns, necessitating a robust investment strategy to meet future obligations.
In response to these challenges and to optimise future performance, the fund is set to implement a revised Investment Strategy Statement (ISS). Officers, in collaboration with London CIV, have finalised an implementation plan that involves reducing the fund's exposure to listed equities and increasing allocations to credit assets and UK Government bonds. A significant transaction has already occurred, moving £95 million from the LCIV Passive Paris Aligned Equity Fund to the LCIV All Maturities Buy & Maintain Credit Fund. Further allocations to index-linked government bonds are also planned.
The committee also noted the successful introduction of electronic annual benefit statements for the 2025/26 financial year. Within a week of communication, 741 members registered for the new portal, contributing to a total of over 3,400 registered members. The report also indicated a data quality pass rate of 92.6% for tested members, with ongoing efforts to enhance data accuracy.
Despite the benefits of pooling investments, the report acknowledges short-to-medium term uncertainty regarding transition costs.
The committee confirmed that its start time for the municipal year 2026/27 will remain at 7 p.m. The date of the next meeting was set for 3 December 2026. Further details on the fund's activities and performance can be found in the Public reports pack for the 15th October 2026 Pensions Committee meeting Public reports pack 15th-Oct-2026 19.00 Pensions Committee.