Hackney Council's Pensions Committee has agreed to a review of its investment strategy, aiming to ensure the fund's long-term financial health and alignment with evolving priorities, including government-led changes to Local Government Pension Schemes (LGPS). The government is driving forward reforms to consolidate LGPS assets, improve governance and secure local investment. The government formally introduced the Pension Schemes Bill in June 2025.
The review, agreed at the Pensions Committee meeting on Tuesday 29 July 2025, will assess the current asset allocation and consider factors such as these government-led changes, climate and sustainability objectives, local investment opportunities, and new investment possibilities. The last formal review took place in March 2023, where new asset allocations were made to Multi Asset Credit, Impact Property and Nature Based Solutions.
The asset allocation review aims to:
- Assess the appropriateness of the current asset allocation
- Reflect Government-led LGPS changes and try to 'future-proof' the ongoing relationship with the London Collective Investment Vehicle (LCIV). Hackney Pension Fund's assets will be transferred to the London CIV by April 2026 alongside the delegation of the implementation of investment strategies and principal advice to be provided by the London CIV.
- Incorporate climate and sustainability objectives
- Incorporate local investment allocation decisions
- Evaluate new investment opportunities
As part of the review process, members of the Pensions Committee, Pensions Board, and council officers will complete an Investment Belief Survey. Miriam Adams, Assistant Director of Pension Fund Investments and Administration, stated that the survey aims to capture updated views from these stakeholders on investment beliefs and the Fund's current position. The output will be used to inform a refresh of the strategic investment objectives for the Fund which will in turn inform the investment strategy decision making.
The review process commences with initial discussions between the investment adviser and the fund actuary to understand the initial thoughts and modelling of the triennial valuation. This is followed by investment strategy training. Members of the Pensions Committee, Pensions Board and officers will complete a survey to capture investment beliefs which will be considered along with the initial results of the triennial valuation and the Pension Risk Management Framework (PRMF) refresh at the next meeting. The investment adviser, Redington, will go over the investment strategy proposals in December with the final implementation and evaluation to conclude the strategy process in March 2026.
The survey questions will cover investment objectives, investment risk, investment strategy, local investment, responsible investment and other factors.
