Lambeth Pension Fund has faced scrutiny over its investment performance, with reports indicating a shortfall against benchmarks across multiple timeframes. The fund's assets stood at approximately £1.97 billion as of December 31, 2025.
For the quarter ending on that date, the fund returned 2.1%, falling short of its benchmark of 3.0%. This underperformance was primarily attributed to global equity mandates. Specifically, the London CIV Global Equity mandate returned -1.5% against a benchmark of 3.5%, and the London CIV Sustainable Global Equity mandate returned 2.7% against a benchmark of 3.2%. While economic resilience and AI-led optimism drove financial markets, and some developed market central banks continued cutting rates, specific reasons for the underperformance of these particular mandates beyond general market conditions were not detailed.
Performance over one, three, and five-year periods also failed to meet their respective benchmarks. The report highlights that while emerging markets equity performed well, global equity, property, and other mandates were significant detractors. The property mandates also underperformed; the London CIV Housing Fund returned 0% against a benchmark of 1.5%, and the Invesco Property mandate returned -3.9% against a benchmark of 1.7%. The reduction in property exposure and increase in cash holdings was due to the fund receiving redemption proceeds from the Invesco European Property Fund.
Despite the underperformance, the actuary's estimated funding level as at September 30, 2025, stood at a healthy 136%. This figure is an illustration based on roll-forward assumptions from the March 2022 valuation. The final 2025 actuarial valuation results are close to finalisation and an updated funding level will be provided at the next Committee meeting, scheduled for April 2026. This valuation is fundamental to the funding and investment strategies of the Pension Fund, as well as determining employer contribution rates over a three-year period. The valuation also showed an improved funding level of 120% as at March 31, 2025, up from 96% at the March 31, 2022 valuation.
The fund's actual asset allocation was most notably overweight to Global Equity, MAC, and Cash, and most notably underweight to Property and Private Equity. The global equity, emerging market equity, private debt, and private equity positions all fall outside their respective rebalancing ranges in the current Investment Strategy. These allocations will be adjusted as part of the updated Investment Strategy. New commitments were made in April 2025 to private equity/venture capital to build the allocation back up to the 7.5% target. Performance will continue to be under benchmark until capital is called to invest and those investments start to mature and generate profits.
As at 31 December 2025, the Fund has underperformed in the one-, three- and five-year periods across various asset classes, including Global Equity, Emerging Markets Equity, Property, UK Private Rented Sector Property, Multi-Asset Credit, Private Debt, Corporate Bonds, and Private Equity. The overall fund also underperformed its benchmark over these periods.
For more detailed information on investment performance, refer to the Investment Performance Update Pensions Committee March 2026 and the Lambeth Investment Performance Report - Q4 2025.
The Investment Strategy Statement 2026 Part I outlines the fund's strategic direction.
Further details on the fund's financial health can be found in the Funding Strategy Statement 2026 and the Lambeth Funding Strategy Statement - Draft.
The Lambeth Pension Fund Risk Register Report March 2026 provides insight into potential risks.
Information regarding pensions administration performance is available in the Pensions Administration Performance Report - 31 December 2025.
The Pensions Committee Work Plan 2025-26 outlines the committee's activities.
The Pension Fund Business Plan Tracker 2025-26 details the fund's operational plans.
The Pensions Overpayment and Underpayment Policy and its draft appendix are also available.
General updates can be found in the General Update Report March 2026.
Details on suggested training are in Suggested Training.
The Agenda frontsheet Wednesday 25-Mar-2026 18.30 Pensions Committee and the Public reports pack Wednesday 25-Mar-2026 18.30 Pensions Committee provide meeting context.
