Issue - meetings

This report provides an update on the Investment Strategy Review.

Sawan Shah (Head of Finance, Pensions and Housing Companies) introduced the report from the Corporate Director Finance & Resources, which the Board was advised provided a review of the Fund’s investment strategy, carried out by the Fund’s investment advisors and undertaken in line with best practice at the end of the 2025 valuation cycle.

Members noted that the purpose of the review had been to assess whether the current investment strategy remained appropriate and to consider alternative strategies that might better meet the Fund’s strategic objectives. The Board was advised that this was one of the most significant pieces of work considered by the Sub Committee, given that the vast majority of investment performance would be determined by the overall asset allocation rather than by which individual managers were appointed.

Key points from the report were summarised as follows:

·   Given the improved funding level arising from the 2025 valuation, the Strategy had reflected the recommendation made at the October Pension Fund Sub Committee that the Fund should reduce its overall risk exposure. The broad allocation to three main areas – growth, income, and protection – was supported.

·   Within the growth allocation, it had been recommended to reduce the long-term exposure to growth assets while introducing an allocation to private equity, partly in anticipation of the Government’s Fit for the Future proposals requiring funds to allocate assets towards local investment.

·   Within the income allocation, the strategy review recommended increasing the total allocation to 32.5%. Private debt allocation was broadly maintained, with property and infrastructure allocations both targeted at 10%. The multi-asset portfolio allocation was recommended to reduce to 5%, a change that could be implemented, in part, promptly.

·   On the protection side, it was recommended to increase the allocation to both fixed interest gilts and the multi-asset credit fund to 20%, largely funded through the rebalancing of the multi-asset allocation.

·   A significant difference from the previous strategy review was that, in light of the Government’s Fit for Future reforms, the Fund would no longer implement the strategy directly.  Under the requirements relating to pooling arrangements, responsibility for delivery and implementation of the new investment strategy would rest with the London CIV. Given that a number of the increases in allocation were to private market assets such as infrastructure, property and private debt, which take time to build up, the report proposed an interim target allocation to work towards in the meantime.

In response to a question from the Chair on whether the maturing nature of the Fund was influencing the strategy, the Board was advised that this was indeed a factor. As a sector, LGPS pension funds were better funded than at any previous valuation, meaning that most funds were seeing reductions to employer contribution rates and therefore did not need to take as much investment risk. Alongside this, as a maturing fund with more pensioner members drawing benefits than active members paying in, and with employer contributions reducing, there was a greater need to generate income from assets. The strategy therefore  ...  view the full minutes text for item 10

This report provides an update on the Investment Strategy Review.

(Agenda republished to include the attached report on 11 February 2026)

The Chair noted that certain aspects of this item, along with Agenda Items 7 (Investment Monitoring Report - Q4 2025) and 8 (2025 Triennial Valuation Results and Funding Strategy Statement)contained exempt information which, as required, would need to be considered in the closed session of the meeting.

Manish Shah (Senior Finance Analyst) introduced a report from the Corporate Director Finance and Resources providing final details on the review undertaken by the Pension Fund’s investment advisor, Hymans Robertson, of the Fund’s current investment strategy, following on from its 2025 valuation.  Members were advised that 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. In presenting the update members were advised that following on from the 2025 triennial valuation and the October 2025 meeting, it had been established that the Sub-Committee would be adopting a new long-term investment strategy as modelled by Hymans Robertson, who had been commissioned to review and evaluate the current investment strategy and to provide final analysis and recommendations. It was noted that from this review onwards, investment setting would be the responsibility retained at Brent Pension Fund level, with investment implementation delegated accordingly.

Manish Shah then invited James Glasgow (Hymans Robertson) to provide further analysis, presenting the key findings and recommendations of the Investment Strategy Review. In presenting the update, he highlighted the following key points:

·            The strategy review had been conducted in correlation with the triennial actuarial valuation. The work undertaken was predominantly focused on ensuring sufficient resources to meet benefit payments as they fell due, recovering any shortfalls in assets, keeping employer contributions as stable as possible at reasonable cost, and maximising investment returns within reasonable risk parameters.

·            The outcome of the analysis had led to a series of recommendations set out in the executive summary of the report. The Sub-Committee had agreed in October 2025 to adopt a new long-term investment strategy, referred to in the report as Alternative Three. This new strategy included new allocations to private equity and natural capital, a reduction in the infrastructure allocation, and an increased allocation to protected assets.

·            In terms of required changes to current assets, specifically the Multi-Asset Funds, the proposed changes had been categorised into two groups: those that could be implemented over the near term through officers, and those that would take longer to implement and would require engagement with London CIV to clarify responsibility.

·            In respect of immediate actions, it was recommended that the Fund reduce its allocation to the Multi-Asset Fund, which was currently overweight, and reinvest those assets into the protection portfolio to increase the allocation to Fixed Interest Gilts and Multi-Asset Credit. Multi-Asset funds were to be reduced from 14.3% to 5.0% (down 9.3%) in the long term, with the review strategy recommending reducing over exposure by around 7% in the short term with around a third of the proceeds from the sale to top up Gilts. The remaining balance from the sale  ...  view the full minutes text for item 6