Hammersmith and Fulham Council's pension fund is set to invest between 5% and 10% of its assets locally, following a decision by the Pension Fund Committee.
The committee met on Wednesday, June 24, 2026, to discuss the fund's investment strategy and approved a draft Local Investment Policy. This policy outlines the fund's approach to investing in opportunities that deliver measurable economic benefit within the UK, with a strategic target range of 5% to 10% of total fund assets. As of 31 March 2026, the total value of the fund's assets was £1.457 billion, meaning the local investment allocation could range from approximately £72.85 million to £145.7 million.
The policy defines local investment as delivering economic benefit within the UK, with a focus on Greater London and the wider London economic region. Opportunities considered will include infrastructure projects, affordable and social housing, regeneration, renewable energy, private debt and equity supporting local businesses, and venture capital. Housing and infrastructure have been identified as key priorities for local investments within this region.
Sean Cogley, Pension Fund Manager, presented the draft policy, noting that while the precise definition of 'local' is still subject to government guidance, the fund is preparing to meet the new requirements. The Pension Schemes Act 2026 and associated LGPS regulations are introducing new requirements for local investment. The draft guidance issued previously defined 'local' as either the vicinity of the borough or the vicinity of the pools (London and Bucks as a whole). The LCIV is awaiting final government guidance on this matter, expected by the end of June 2026.
Sean Cogley explained that the policy aims to support economic growth while ensuring appropriate risk-adjusted financial returns for beneficiaries. The new investment policy is expected to support sustainable economic growth, infrastructure development, housing provision, environmental transition, and business development within the United Kingdom, and specifically within Greater London and the wider London economic region. The LCIV envisions a pan-London local investment model to identify and access investment opportunities that deliver economic benefits across the capital. Investments may include infrastructure projects, affordable and social housing, regeneration and place-based development, renewable energy and energy transition projects, private debt and private equity supporting local businesses, venture capital and innovation funds, and property and real assets with demonstrable local economic impact. The LCIV also notes that approximately 53% of its private market investments are already in the UK.
The committee discussed the importance of ensuring that local investments deliver returns, rather than being driven by headline-grabbing projects. Councillor Florian Chevoppe-Verdier, Chair of the Pension Fund Committee, emphasized that fiduciary duty to members remains paramount, and all investment decisions must be consistent with the fund's objectives and risk appetite. The Fund's fiduciary duty means that all investment decisions, including local investments, must be made in the best financial interests of scheme beneficiaries. The draft Local Investment Policy emphasizes that local investments must be capable of meeting the Fund's investment return requirements and be consistent with its risk appetite, funding objectives, and diversification requirements.
The London Collective Investment Vehicle (LCIV) will play a key role in identifying, assessing, and implementing local investment opportunities on behalf of the fund. The LCIV is working with partner funds to develop a collaborative approach to local investments. Specific examples of investments being made include the Man Group Community Housing Fund investing in affordable housing, and Quinbrook Renewables Impact Fund investing in renewable infrastructure projects such as solar power, wind farms, and battery storage. The LCIV UK Housing Fund also offers exposure to various sectors of the residential market. The LCIV is also looking to structure mandates for private equity investments.
The policy will be reviewed at least every three years, or sooner if legislative or strategic changes occur. While a precise timeline for active deployment is not provided, the LCIV notes that it will take time to build the necessary mandates and products. The policy is intended to be a work in progress, with amendments delegated to the Director of Treasury and Pensions in consultation with the Chair.
Public reports pack 24th-Jun-2026 19.00 Pension Fund Committee.pdf
