Barnet Pension Fund's investment returns for the quarter ending June 30, 2026, have lagged behind their benchmark, according to a report presented to the Pension Fund Committee. The fund's investment portfolio, valued at £1.95 billion, achieved a net return of 5.7% during the quarter, falling short of the benchmark target of 6.0% and representing an underperformance of 0.3%.
The report, presented by investment consultants Hymans Robertson, highlighted that the underperformance was partly due to a significant cash holding of 10.8% at the end of the quarter. This substantial cash position resulted from the termination of Insight Secured Finance funds, with approximately £115 million in proceeds received on June 30, 2026. These funds were held as cash at the close of Q2 2026 and were earmarked for reinvestment by London CIV.
To address the cash holding and improve future investment performance, London CIV, in consultation with officers, has agreed to reinvest these proceeds into existing credit funds. This strategy aligns with the recent Strategic Asset Allocation review, which modelled a target allocation of 75% to corporate bonds and 25% to multi-asset credit.
Despite the quarterly underperformance, the report noted that the fund's assets increased by approximately £91.4 million during the quarter. The overall strategic asset allocation remains broadly in line with targets, with the exception of the cash holding and a slight underweight in credit.
The full report can be found in the Public reports pack 14th Sep 2026 Pension Fund Committee.