Kingston's Pension Fund has reported a significant growth in its net assets, reaching £1.41 billion in the 2025-26 financial year. The fund achieved an investment return of 8.9% over the period, a performance primarily driven by strong equity markets.
The annual report, presented to the Pension Fund Panel, details the fund's financial health and strategic developments. While the fund remains cash flow negative, meaning benefit payments exceed contributions, the investment income generated has been crucial in bridging this gap. To bridge this gap, the fund requires approximately £10 million in investment income annually, a figure that has increased due to a reduction in contribution rates from the 2026-27 financial year. There is no projected timeline for the fund to become cash flow positive.
As of the end of the 2025-26 financial year, the fund's net assets are distributed across various asset classes. Listed Equity constitutes the largest portion at £740.7m, followed by Credit at £319.5m and UK Government Bonds at £154.4m. Other significant holdings include Property (£114.8m), Infrastructure (£75.5m), Private Credit (£60.9m), and Cash (£48.4m). Notably, Private Equity holdings are listed as £0.0m.
A key strategic initiative highlighted is the increased proportion of assets pooled through the London Collective Investment Vehicle (LCIV), now standing at 62.1%. This pooling strategy is part of the broader LGPS Fit for the Future
reforms, designed to enhance efficiency and reduce costs. The LCIV pooling allows LGPS funds to invest collectively, creating larger investment pools, improving manager allocation, streamlining processes, and reducing fees. Cumulative savings from pooling, initiated in 2015/16, have reached £2,911m by 2025/26, driven by growing assets under management. While the specific benefits for Kingston's Pension Fund members are improved governance and monitoring, potential drawbacks such as transition costs associated with moving assets into LCIV products are also noted.
The cost per member for administering the scheme has continued to decrease, a trend observed over the last five years. This reduction is attributed to both administrative efficiencies and fee savings realised through the LCIV pooling. Projected future cost savings from this strategy are expected to further reduce fees and enhance investment governance and monitoring, though the specific mechanisms for passing these savings to members or the fund are not detailed.
Membership of the fund has seen a slight increase, now standing at just under 20,000. The total membership at the end of 2025/26 was 19,977, a marginal increase from 19,719 the previous year. While active membership saw a slight rise from 5,499 to 5,500, the number of deferred and pensioner members increased more significantly. The report does not provide a detailed demographic breakdown, such as age distribution.
For more detailed information, refer to the Public reports pack for the Pension Fund Panel meeting on Wednesday 23 September 2026: Public reports pack.