Issue - meetings

This report provides an update on the investment strategy review being carried by the Fund’s investment advisor, Hymans Robertson, following on from the Fund’s 2025 valuation. The purpose of the review was to evaluate the current investment strategy and analyse the ability of alternative strategies to meet the Fund’s strategic objectives.

This report provides an update on the investment strategy review being carried by the Fund’s investment advisor, Hymans Robertson, following on from the Fund’s 2025 valuation. The purpose of the review was to evaluate the current investment strategy and analyse the ability of alternative strategies to meet the Fund’s strategic objectives.

Sawan Shah (Head of Finance, Pensions and Housing Companies) introduced a report from the Corporate Director Finance & Resources the report, providing an update on the investment strategy review being carried out by the Fund's investment advisor, Hymans Robertson, following the Fund's 2025 valuation with the purpose of evaluating the current strategy and analysing the ability of alternative strategies to meet the Fund's strategic objectives.

In presenting the report, members noted that the Fund’s current strategic asset allocation had been agreed in February 2023 following the 2022 valuation based on a a long term target of 50% to equities, 35% to income (including diversified growth funds) and 15% to protection assets with a phased approach (based around an interim allocation) toward implementation agreed working towards the long-term target allocation.

Members were advised that the Fund’s investment advisors, Hymans Robertson, had begun the Investment Strategy review focussed around the high-level investment strategy with the aim of determining the high-level allocation to Growth, Income and Protection assets and incorporating the asset liability modelling carried out during the valuation to test the probability (and associated risks) of the Fund’s current investment strategy and alternative strategies achieving its long-term objectives.

James Glasgow (Hymans Robertson) then presented an outline of the initial results identified to date through the review (as had been detailed within Appendix 1 of the report) with members advised that following their initial consideration the proposals would be subject to development over the autumn with the final version of the investment strategy review to then be presented to the Sub-Committee at the February 2026 meeting for approval.

Comments identified following the presentation included the move towards income generating as opposed to growth assets; the impact of the Fit for Future proposals on development and oversight of the strategy including threshold for local investment.

Having thanked Sawan Shah and James Glasgow for their presentation and the information provided the Sub Committee RESOLVED to note the update provided and endorse the approach and initial findings outlined as the strategy was developed and finalised.