The Westminster Pension Fund Committee, in its meeting on November 5, 2025, recently published its agenda and reports. Key decisions include a significant impact investment and strategic considerations for its global equity portfolio.
£50 Million Impact Investment in Temporary Accommodation Approved
The Committee approved a £50 million investment in an inflation-linked loan to a limited liability company. This company will acquire and lease back temporary accommodation properties to Westminster City Council. The investment, representing approximately 2.4% of total fund assets and 12.3% of the fixed income portfolio, is intended to provide secure, long-term, inflation-protected income, aligning with the pension fund’s de-risking objectives. It also aims to create local impact by supporting the provision of temporary accommodation for vulnerable residents. The investment is structured as a 40-year loan with amortizing quarterly payments, linked to the UK Retail Prices Index (RPI). Final execution is subject to legal due diligence and Cabinet approval, with a deadline of March 31, 2026. (Pension Fund Committee, November 5, 2025, pages 3-5)
Global Equity Quality Fund Disinvestment Under Consideration
The Committee is asked to approve the termination of the LCIV Global Equity Quality Fund, managed by Morgan Stanley, which holds £395 million as of September 30, 2025. The recommendation for disinvestment is based on sustained underperformance, with the fund ranking in the 89th percentile over five years and 99th percentile year-to-date against its MSCI ACWI benchmark, and recent instability within the management team. (Pension Fund Committee, November 5, 2025, pages 13-14)
Reinvestment Options for Disinvested Global Equity Assets
For the £395 million from the LCIV Global Equity Quality Fund, three reinvestment options into passive equity mandates are proposed: full reinvestment into LGIM, full reinvestment into BlackRock, or a 50/50 split between LGIM and BlackRock. The rationale for passive reinvestment includes reduced management fees, with potential annual savings of up to £2 million, and guaranteed market-related performance. The Fund currently holds passive global equity mandates with both LGIM and BlackRock. (Pension Fund Committee, November 5, 2025, pages 14-15)
LGPS Scheme Improvements Consultation Response Approved
The Committee approved the Westminster Pension Fund’s response to the Ministry of Housing, Communities and Local Government’s (MHCLG) consultation on LGPS Scheme Improvements (Access and Protections). The fund supports the proposed changes, which cover amending the normal minimum pension age, simplifying applications for directions, applying new Fair Deal protections to outsourced workers, and extending pension fund access to mayors and councillors in England. The fund will provide further comments to MHCLG on the need for guidance on communication best practices with affected employees. (Pension Fund Committee, November 5, 2025, pages 19-20, 123-128)
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