Barnet Pension Fund is set to enhance its oversight of the London Collective Investment Vehicle (LCIV), a move aimed at strengthening scrutiny of the pooled investment arrangements. The decision was made during a meeting of the Pension Fund Committee on Monday, September 14, 2026.

The committee resolved to authorise officers to develop an appropriate oversight governance framework for LCIV's activities. This new framework is intended to address identified gaps in the current oversight mechanisms, which include shareholder rights through LCIV General Meetings and the Shareholder Committee, direct engagement with LCIV officers and board members, and quarterly monitoring reports from Hymans Robertson.

A donut chart illustrating the asset allocation of the Barnet Pension Fund, with categories including global equity, corporate bonds, and private lending.
Asset Allocation of Barnet Pension Fund

These gaps were particularly noted in the direct challenge of strategic advice and the assessment of value for money. To address this, options for enhanced oversight were proposed, such as quarterly written requests from officers to LCIV regarding alignment with the Investment Strategy Statement (ISS) and Investment Management Agreement (IMA), annual reviews of advice quality, and annual reviews of responsible investment outcomes. The proposed annual reviews will assess the 'quality of advice' and 'responsible investment outcomes' as part of the enhanced oversight.

The 'Fit for the Future' reforms, introduced by the Pension Schemes Act 2026 and associated regulations which came into force on 30 June 2026, are leading to the LCIV taking on greater responsibility for implementing the fund's investment strategy. These reforms clarify the roles and responsibilities between the administering authorities and the pool, with the LCIV taking on implementation responsibilities delegated through the Investment Management Agreement. With LCIV now responsible for implementing the fund's investment strategy, robust oversight is crucial. The fund's investment portfolio was valued at £1.95 billion as of 30 June 2026.

Organizational chart showing the relationship between the Pension Fund Committee, Administering Authority, Independent Adviser, Local Pension Board, and Senior LGPS Office.
Pension Fund Governance Structure

In the current oversight structure, the LCIV General Meetings allow shareholders to exercise their rights, while the LCIV Shareholder Committee, comprising representatives from Partner Funds, consults on corporate strategy, business plans, financial and corporate performance, responsible investment policies, and matters reserved to shareholders. However, the report notes that our influence is diluted by the collective voice of the 33 other Partner Funds and presence on the relevant committee(s).

The committee acknowledged the existing oversight frameworks and the proposed options for enhancement. The move signifies a proactive step by the Barnet Pension Fund to ensure robust governance and accountability in its pooled investment arrangements. The meeting authorized officers to develop the new oversight governance framework, with the intention to likely come back to committee with the final proposed arrangements at a later date. The report also mentions that the Senior LGPS Officer and Independent Officer roles need to be filled by 31 December 2026, and these roles will be key in the oversight framework.

Bar chart displaying the investment performance of the Pension Fund across various asset classes and geographical regions for 3 months, 12 months, and 3 years.
Pension Fund Investment Performance

Further details on the fund's performance can be found in the Public reports pack 14th Sep 2026 Pension Fund Committee.