Waltham Forest's Pension Fund has fallen short of its strategic performance target, according to a report presented at the Pension Committee meeting on 26 November 2025. The success of the investment strategy and achievement of performance targets are key to achievement of the funding strategy objectives agreed following the 2022 triennial valuation.

As of 30 September 2025, the fund's investments were valued at £1,180.6 million, an increase of £41.8 million since the previous quarter. However, the fund's three-year return was 6.2% against a benchmark of 12.2% per annum as at 30 September 2025. The fund's strategic performance target is the Consumer Price Index (CPI) + 2.25% (5.35%).

To address the underperformance, the Committee is considering inviting underperforming managers to future meetings and ensuring regular dialogue via the officers concerning the performance of the fund managers. The Committee also agreed to submit a redemption request for all units within the Invesco Property fund at the previous meeting.

The report, which summarised expenses for the quarter ended September 2025 with a forecast outturn, also provided an update on the performance of the fund's investments. The committee was asked to note the pension fund expenses and appendices relating to performance and market background. Individual manager performance against benchmark for the quarter, 1 year and since inception is shown in the table as at 30 September 2025 within the Pension Expenses and Performance Report November 25.

The report highlighted some specific underperforming managers, including the LCIV (Longview) – Global Equity Focus Fund and the Darwin Leisure Property Fund.

  • LCIV (Longview) – Global Equity Focus Fund: This mandate returned 2.8% in Q3, underperforming the benchmark return of 9.2%. One-year relative performance was negative with a return of -0.6% compared to 16.8% for the benchmark. It has also underperformed over three years by 6.0% per annum, over five years by 6.4% p.a. and since inception (2018) by c. 3.9% p.a.. This underperformance was driven by poor performance within financial services, information technology, and consumer discretionary companies. The manager does not invest in companies perceived to be cyclical or reliant on external variables. £18.0m was disinvested from the mandate on 28 August 2025, to address the overweight allocation which had built up.
  • Darwin Leisure Property Fund: This mandate reported a return of -81.6% over the quarter. The annualised return over the three year period to 30 September 2025 stands at -55.3% p.a. As of September 30, 2025, the value of the Waltham Forest Pension Fund's investment in the Darwin Leisure Property Fund was £4.9 million. Redemption requests from investors have reached approximately 30% of NAV. The manager has determined to value the portfolio on the red book valuation methodology reflecting current market value on disposal of the underlying property assets, compared to the previous discounted cash flow approach. The Fund has submitted redemption requests on its Darwin holdings which the manager has deferred. On 29 October, unit holders received a letter from the manager which noted that: The Manager will be recommending restructure as the best path to realising maximum value and encourages investors to support the restructuring. Details of the restructuring plan together with important legal documentation for your consideration will be circulated in due course.