Hackney Pension Fund is undergoing significant reforms as a result of the Fit for the Future initiative, which mandates that all Local Government Pension Scheme (LGPS) assets be managed through FCA-regulated pooling companies. London CIV, the investment pool for London boroughs and Buckinghamshire, will now oversee the implementation of investment strategies.

The Fit for the Future reforms, which came into force on 30 June 2026, have redefined the roles and responsibilities between partner funds like Hackney and the pooling company. While London CIV will manage the day-to-day investment implementation, Hackney Pension Fund will retain responsibility for setting its Investment Strategy Statement (ISS) and high-level Strategic Asset Allocation (SAA). London CIV will also provide principal strategic asset allocation advice, investment implementation, portfolio design, responsible investment implementation, and the delivery of local investment. This marks a shift from Hackney's previous approach, where investment consultants provided advice on long-term strategy and other investment matters.

Map of the UK showing the geographical distribution and assets under management (AUM) of various Local Government Pension Scheme (LGPS) investment pools, with London CIV highlighted.
Map of LGPS investment pools

During a recent Pensions Committee meeting on July 27, 2026, representatives from London CIV provided an overview of these changes. Jenny Buck, Chief Investment Officer at London CIV, and Wazul Moha, Client Relations Manager, explained that the reforms aim to achieve greater scale, cost efficiency, and enhanced governance through pooled assets. They also highlighted London CIV's commitment to fiduciary duty, choice, and value for its partner funds.

London CIV emphasises its dedication to fiduciary duty, stating, guided by fiduciary duty in everything that we do. As a company fully owned by its 33 partner funds, London CIV asserts that its only shareholders are these funds, and it does not operate for profit, ensuring all actions are aligned with partner fund requirements. The LGPS pools are exclusive to LGPS funds, preventing external investment and reinforcing the alignment of fiduciary responsibility between the pools and their partner funds. Hackney Pension Fund will continue to set its ISS, SAA, Responsible Investment (RI) approach, and local investment policy, which London CIV will then implement.

Diagram illustrating the four stages of responsible investment: Assess, Invest/Divest, Steward, and Report, with associated actions for each stage.
Responsible Investment Cycle

The Fit for the Future reforms came into force on 30 June 2026, with the Pension Schemes Act 2026 receiving Royal Assent on 29 April 2026 and the LGPS Regulations 2026 also coming into force on 30 June 2026. London CIV representatives are scheduled to attend all Pensions Committee quarterly meetings from September. The ideal deadline for the completion of the Responsible Investment policy review was set for 30 September 2026.

Regarding performance measurement and reporting, London CIV will be responsible for Investment Implementation , Portfolio Design and Execution , and Responsible Investment (RI) Implementation . The pools are required to produce an annual report, covering assets, costs, performance, and local investments for the year ending 31 March, to be published by 31 December of the same year. Performance will be reported at the asset class level against standard industry benchmarks for all asset classes within the template strategic asset allocation (SAA). The Hackney Pension Fund committee will maintain a strong monitoring role over strategic asset allocation, investment objectives, and responsible investment, ensuring they monitor what being done in your name.

A table illustrating the roles of the AA (Asset Allocation) and Pool in various investment tasks, from strategy to implementation, with a focus on investment stewardship.
Roles in Investment Tasks

Potential risks associated with consolidating investment management under London CIV are being monitored. The meeting notes that These new changes directly impact the risks on the Risk Register. Implications of London CIV managing all assets, providing principal advice, appointing investment managers, deciding on investment style, and being responsible for stewardship continue to be monitored to ascertain any level of risk to the Fund. The need for a scalable approach across 33 partner funds may necessitate compromise, potentially impacting individual fund needs. However, specific risks and detailed mitigation strategies beyond ongoing monitoring and collaboration are not yet fully elaborated.

Pie chart illustrating the strategic asset allocation of the Hackney Pension Fund, detailing percentages for various asset classes such as equity, bonds, property, and private debt.
Hackney Pension Fund Strategic Asset Allocation

Further details on the reforms and the role of London CIV can be found in the Public reports pack for the Pensions Committee meeting on Monday 27 July 2026 Public reports pack Monday 27-Jul-2026 18.30 Pensions Committee and the supplementary papers Supplementary papers Agenda item 7 Introduction to London Civ and Agenda item 8 Fit for the Future.