Barnet Pension Fund is set to invest up to 3% of its assets in local projects, a move approved by the Pension Fund Committee on March 16, 2026. This decision is part of an updated Investment Strategy Statement (ISS) that aligns with new regulations for the Local Government Pension Scheme (LGPS) coming into effect in April 2026.

The updated ISS, which follows the 2025 Investment Strategy Review, mandates a specific approach to local investment. This includes defining local investment as encompassing the geographical area of the asset pool, which includes Barnet. A long-term target allocation of 3% has been set for such projects. The Fund's advisors, Hymans Robertson, have been instrumental in developing this strategy.

A line graph showing the projected likelihood of being 100% funded over 25 years under different economic scenarios.
Projected funding likelihood under different scenarios

This initiative is part of broader reforms within the LGPS, known as Fit for the Future, aimed at strengthening governance and investment practices. The Fit for the Future reforms include key governance updates such as the appointment of a Senior LGPS Officer by 30 September 2026 and an Independent Person by the same date. There is also a requirement for biennial Independent Governance Reviews (IGRs) and the publication of their findings and action plans. The new regulations, driven by the Pension Schemes Bill, require administering authorities to formulate and publish an ISS within 18 months of each valuation date and to keep it under regular review. The draft ISS was approved by the Pension Fund Committee on 13 January 2026, and following consultation, authority is delegated to the Executive Director of Resources to finalize it. London CIV will receive the approved ISS and will develop a strategic implementation plan within three months.

A waterfall chart illustrating the changes in the Barnet Pension Fund's surplus/deficit from the 2022 valuation to the projected 2025 valuation.
Barnet Pension Fund surplus/deficit changes

Beyond local investments, the updated ISS also emphasizes responsible investment, building on previous work such as the Barnet Zero initiative. The strategy will be implemented through the London Collective Investment Vehicle (London CIV), the asset pool for London's LGPS funds. The London CIV will manage the Fund's assets under the Investment Management Agreement (IMA), with the Pension Fund Committee retaining a role in setting the strategic direction. The strategic implementation plan developed by London CIV will detail how the target allocation, including local investments, will be achieved.

Bar chart showing the performance of the Barnet Pension Fund compared to its benchmark over different time periods.
Barnet Pension Fund performance vs benchmark

The definition of local investment for the purpose of this strategy is the geographical area of the pool, and that includes Barnet as well. A session was held with partner fund officers to brainstorm investment ideas for the pool. The strategy will be finalized following consultation and published on the Pension Fund website.