The Tower Hamlets Pension Fund is preparing to pool its assets through the London Collective Investment Vehicle (CIV) as part of a significant reform initiative for the Local Government Pension Scheme (LGPS). This move, discussed at a recent Pension Board meeting, aligns with the government's 'Fit for the Future' proposals aimed at consolidating LGPS assets to enhance efficiency and investment management.
Under these proposals, the London CIV will manage all investments on behalf of the Fund, with the transition set to be completed by April 2026. This consolidation is anticipated to bring greater centralisation and efficiency
to the Fund's operations.
During the Pension Board meeting on Monday, 20 July 2026, members reviewed the Pension Fund's annual report, which highlighted the implementation of the 'Fit for the Future' proposals as a major policy initiative. The report stated that all of the Fund's assets will be managed via the London CIV from April 2026.
However, the move is not without potential challenges. The Pension Fund Risk Register identifies several risks associated with pooling, including reduced investment implementation flexibility
and increased dependence on pool delivery capability
. Concerns have also been raised about a Misalignment between the Fund's fiduciary duty and LCIV implementation strategy
and a Conflict between Pool shareholder role and fiduciary role
. Furthermore, the London CIV must obtain Financial Conduct Authority (FCA) permission, and the Transition Execution
of assets, involving the signing off of off-pool asset migration within a timing constraint, presents its own set of risks.
The Pension Board meeting agenda and public reports pack for the 20th of July 2026 can be accessed for further details on these discussions. Agenda frontsheet 20th-Jul-2026 10.00 Pension Board and Public reports pack 20th-Jul-2026 10.00 Pension Board.
