London CIV is set to assume responsibility for the asset management of the Sutton Pension Fund, following a decision made by the Pension Board on Thursday, March 19, 2026. This transition is a key component of the Fit for the Future
reforms, which aim to streamline pension fund management across London.
The Investment Management Agreement (IMA) between Sutton Council and London CIV is on track to be signed by the end of March 2026, paving the way for London CIV to take over the selection of fund managers and the implementation of the investment strategy. Catherine Gray, Head of Pensions Investments and Treasury for Sutton Council, informed the Pension Board that the IMA is expected to be signed by the end of March, with the schedules detailing Sutton Pension Fund's specific information now finalised. This agreement will formalise London CIV's role in managing the fund's assets.
The transition is described as gradual rather than a sudden shift, with London CIV's progress on the Fit for the Future
reforms being discussed. While a specific timeline for the full assumption of all asset management responsibilities by London CIV is not yet provided, the agreement is expected to enable London CIV to take over these duties. The Pension Board noted the progress made by London CIV, which is part of a broader initiative to consolidate asset management and achieve greater efficiencies.
Consolidating asset management through London CIV is expected to yield specific efficiencies. While London CIV fees have increased as they take on more responsibility, including investment advisors, there have been some fee reductions observed through investing via the London sieve.
Additionally, the percentage paid to managers has seen a slight decrease when investing with the SIV.
Concerns regarding the potential risks associated with this consolidation have been raised, particularly concerning London CIV's capacity and maturity, and the feedback loop to individual authorities. To mitigate these risks, each partner fund has a dedicated client relationship manager at London CIV. Quarterly performance monitoring calls are conducted for all asset classes, allowing partner funds to ask questions and delve into details. London CIV also provides monthly reporting on performance and market updates through a portal. However, it is acknowledged that London CIV is undertaking significant new responsibilities, and ensuring they can provide a service comparable to direct dealings with fund managers is crucial. The potential for fund managers to serve multiple clients was also noted as a concern.
Further details on the Sutton Pension Fund's performance and investment strategy can be found in Appendix A - London Borough of Sutton Pension Fund Q4 2025 [https://moderngov.sutton.gov.uk/documents/s95116/Appendix%20A%20-%20London%20Borough%20of%20Sutton%20Pension%20Fund%20Q4%202025.pdf]. Information regarding the Pension Board meeting agenda can be accessed via the Agenda frontsheet [https://moderngov.sutton.gov.uk/documents/g6032/Agenda%20frontsheet%2019th-Mar-2026%2010.00%20Pension%20Board.pdf?T=0].
