Newham Pension Fund is set to pool all of its remaining assets with the London Collective Investment Vehicle (London CIV), marking a significant step in the fund's consolidation strategy.

The decision was confirmed at a Pensions Committee meeting on Thursday, July 16, 2026, where members approved the Investment Manager Agreement (IMA) with London CIV. This agreement authorises the London CIV to manage the fund's assets, including legacy positions and passive mandates.

A stacked bar chart illustrating the asset allocation of the Pension Fund, showing the percentage of assets pooled with LCIV (18%) and LCIV/LGIM (66%).
Asset allocation of the Pension Fund

The London CIV, established in 2015, is one of six Local Government Pension Scheme (LGPS) investment pools in England and Wales, pooling assets from 33 partner funds. As of March 31, 2026, the London CIV managed £38.1 billion in Assets Under Management (AUM).

This move aligns with the 'Fit for the Future' reforms, which mandate that LGPS funds ensure their assets are held and managed by a pool company. The Pension Schemes Act 2026, which received Royal Assent on April 29, 2026, provides the regulatory framework for this pooling.

Understanding the Assets Being Pooled

The London CIV will now manage Newham Pension Fund's legacy positions and passive mandates. This includes passive investments, which constitute approximately half of the fund's portfolio, and historical private market investments. The fund's property holdings with CBRE are also being transitioned to the LCIV, with CBRE maintaining operational oversight. While current passive equity holdings with L&G are deemed pooled, they will now transition to LCIV supervision and management.

Projected Efficiencies and Timeline

Pooling with London CIV is intended to invest at scale, give enhanced governance, cost efficiency, and broader access to opportunities. Historically, fee savings have been observed across products provided by such pooling arrangements, and efficiencies from increased assets under management with the London CIV are expected over the medium term, though specific monetary projections are not yet available. The committee has agreed to finalise the onboarding of the Fund's remaining assets with the London CIV by approving the Investment Manager Agreement (IMA) . The goal is to reach a target of 100% pooled assets, with 67% currently pooled with LCIV/LGIM. While a definitive timeline for full integration is not explicitly stated, the process is underway, with over half of partner funds expected to be onboarded in the coming weeks.

Performance Monitoring and Reporting

The committee will continue to play a crucial role in the strategic direction of the Fund, ensuring strong governance by establishing clear objectives for its investment pool and regularly monitoring investment performance. The Fund's custodian, Northern Trust, provides comprehensive performance management information, including monthly, quarterly, and annual returns, which are made available on the Members' website. Reports are also received from the Fund's Investment Managers, including London CIV, and its advisers. As of the last reporting period, passive equity funds have performed in line with their benchmarks.

A bar chart illustrating the 3-month relative performance of various investment funds against their benchmarks, as of March 31, 2026.
3-month relative performance of investment funds

This consolidation is expected to enhance governance, achieve cost efficiencies, and provide broader access to investment opportunities for Newham Pension Fund.