P A G E | 114 EALING COUNCIL DRAFT STATEMENT OF ACCOUNTS 2025/26
| Private Equity | These investments are valued using unobservable inputs and estimations, as there's no readily available market data for their pricing. This means valuations rely on models, assumptions, and management judgments. | These investments are valued at £4.037m (4.838m: 2024/25). The sensitivity of changes in the value of these investments is detailed at note 14a. |
|---|---|---|
| Infrastructure | The Fund contains investments in infrastructure funds. that are classified within the financial statements as level 3 investments. The final realised value of those funds may differ slightly from the valuations presented in the accounts, as detailed in note 14a. | The value of the investments is £76.989m (£57.388m: 2024/25). Further details are shown in note 14a if actual results differ from assumptions. |
| Pooled Property | Economic and Market volatility factors may not be fully observable at the measurement date and require forward looking judgement. There may also be differences in methodologies and the timing of revaluations which can create valuation uncertainty. | Property investments where valuation is based on significant unobservable inputs are classified as Level 3. Therefore, the sensitivity analysis in Note 14A relates solely to the Level 3 property holdings of £40.412m (2025: £75.119m) and does not include the Level 2 property holdings. |
In June 2023, a High Court judgement in the case of Virgin Media vs NTL Pension Trustee II Limited provided a ruling related to Section 37 of the Pension Scheme Act 1993 and changes to scheme rules (LGPS as a whole, rather than any specific LGPS Fund). An appeal took place in late June 2024; although narrow in scope, the appeal upheld the original High Court judgement.
Here the “scheme” is the LGPS as a whole, rather than any specific LGPS Fund. As such, any relevant changes and considerations would be overseen by government rather than being addressed at individual Fund level. The Fund’s current understanding is that HM Treasury do not believe the case expressly addresses whether actuarial certifications are required for relevant amendments to public service pension schemes (as the case specifically deals with private sector).
More recently, in June 2025, the government announced its intention to introduce legislation to give affected pension schemes to retrospectively obtain written actuarial confirmation that historic benefit changes met the necessary standards. Draft legislation has been put forward in government amendments to the Pension Scheme Bill, but this is still subject to change and the Bill is yet to be enacted.
Given the above, the Fund does not intend to make any allowance for the Virgin Media judgement. The Fund continues to monitor developments in the case and assess any potential financial or operational implications.
Geopolitical uncertainty has continued following the ongoing conflict in the Middle East. While the conflict has contributed to volatility in global financial markets, the Fund maintains a