The Westminster Pension Fund has underperformed its benchmark over the past year and three years, according to a report presented to the Pension Board on Thursday, March 26, 2026. The fund is being compared against a fixed weight benchmark
, though its specific components are not detailed.
Phil Triggs, Tri-Borough Director of Treasury and Pensions, informed the board that the fund achieved a positive absolute return of 1.57% net of fees for the quarter ending December 31, 2025. However, this figure fell short of the fixed weight benchmark by 0.97%.
Over longer periods, the fund's performance also lagged behind its benchmark. For the one-year period ending December 31, 2025, the fund delivered a positive absolute return of 8.54% per annum, underperforming the benchmark by 3.09%. The three-year period saw a return of 10.88% per annum, also underperforming the benchmark by 1.78% per annum. The report reiterates that Relative underperformance this quarter, can primarily be attributed to the LCIV Global Equity Quality Fund.
No other specific reasons for underperformance over these longer periods are detailed.
The report attributed this underperformance primarily to the London CIV Global Equity Quality Fund, from which the committee had previously agreed to divest. The primary reason for the underperformance of this fund was that it primarily
contributed to the overall underperformance. Furthermore, London CIV has inadequate resources to monitor the implementation of investment strategy and consequently are unable to address underachieving fund managers.
As of 31 December 2025, the total value of the Westminster Pension Fund's invested assets, including cash, stood at approximately £2,298.6 million. The value of the Westminster Pension Fund investments directly managed by London CIV as at 31 December 2025 was £537.9m, representing 23% of Westminster's investment assets. Including passive assets, which are considered pooled as well, this represents £1,571.6m, equating to 68%.
The transition from the London CIV Global Equity Quality Fund to BlackRock's passive global equity fund is expected to be wrapped up in late April
. The report mentions growing wary of the delays, especially as we continue to see Morgan Stanley underperform and that delay effectively costing us. What is somewhat unquantifiable amount of money, but undoubtedly given they're underperforming relative to the alternative that we would otherwise be in.
No specific cost figure for the transition is provided.
Further details on fund performance can be found in the Quarterly Fund Performance document. The Public reports pack and Draft Pension Board Minutes also provide relevant information.
