Croydon Council's Pension Board convened on 24 July 2025, to discuss the fund's compliance with investment pooling requirements and review its investment strategy within the London Collective Investment Vehicle (CIV). The board also received updates on savings achieved through pooling and considered the government's response to the Local Government Pension Scheme (LGPS) reforms.

The meeting addressed the government's mandate requiring all fund assets to be either transferred to a London CIV fund or placed under London CIV management by March 2026. To meet this requirement, the London CIV is implementing a two-stage approach.

The London CIV is already FCA-authorised and regulated. The report pack noted that the London CIV was created to provide broader investment opportunities and enhanced cost efficiencies.

The board reviewed the fund's investments within the London CIV, which was established to broaden investment opportunities and enhance cost efficiencies. According to the meeting's report pack, as of 31 March 2025, Croydon's pension fund had £424.3m, representing 21.7% of its investments, managed by the LCIV. An additional £837.4m, or 42.7%, was managed by Legal and General and M&G Investments under the pooling umbrella. The estimated net savings for 2024-25 were £778,000, compared to £538,000 in the previous year.

Regarding the management of assets, the London CIV's two-stage approach involves:

  • Stage 1 (next 12 months): Moving all off-pool assets into existing London CIV funds or a handful of new funds, while putting appropriate Investment Management Agreements (IMAs) in place for any remaining exposures held by Partner Funds.
  • Stage 2 (next 12 months and post-March 2026): Moving public market assets under IMA into London CIV funds as the proposition evolves to accommodate them. Private market assets under IMA will transfer to London CIV funds as the current exposures mature and the proceeds are invested into appropriate London CIV solutions.

The board also discussed the government's response to the LGPS Fit for the Future consultation, which addresses investment pooling and scheme governance. Key points from the government's response include:

  • Funds will continue to set their own investment strategies but delegate implementation to their pool.
  • Funds must take their principal investment advice from their pool.
  • All fund assets must be transferred to the management of the pool.
  • Each pool must be established as FCA-authorised and regulated investment management companies.
  • For investment purposes local is defined as broadly local or regional to the Administering Authority or pool.
  • Each pool will be required to build the capability to enable local investment for their funds.
  • Funds will be required to work with other local bodies to ensure collaboration on local growth plans.
  • Reporting on the impact of local investments will be done by the pools.

For investment purposes, the definition of 'broadly local or regional' means that each pool will be required to build the capability to enable local investment for their funds. Funds will also be required to work with other local bodies to ensure collaboration on local growth plans, and reporting on the impact of local investments will be done by the pools.

The meeting also referenced a letter from HM Treasury confirming support for the LCIV's strategic development plan, and a letter from the chair of the Scheme Advisory Board to ministers regarding pooling decisions.