Issue - meetings

To receive the Brent Pension Fund Q1 2026 - 27 Investment Monitoring Update Report.

The Chair invited Kenneth Taylor (Hymans Robertson) (Hymans Robertson) to introduce a report, which outlined the performance of the Brent Pension Fund over the Q1 monitoring period 2026 (January - March 2026).  Members were advised this formed part of the Sub-Committee's regular reporting cycle, designed to help members monitor investment performance against expectations, review whether investment managers were delivering expected outcomes, compare the Fund's current asset allocation against its long-term strategic targets, and consider whether any investment changes might be required to keep the Fund on track with its agreed strategy.

Prior to presenting the report, members were also advised that once the Pension Fund pooling arrangements had been fully implemented future Investment Monitoring Updates would be provided through the London CIV.

In outlining the market background to the reporting period, it was noted that the 12 months to the end of March 2026 had been an eventful period from a geopolitical perspective, beginning with the announcement of US tariffs in April 2025, which had led to a sharp but short-lived fall in equity markets, and including the onset of the conflict in Iran in February/March 2026, which had increased inflation expectations. Despite this backdrop, equity markets had delivered strong returns over the year.  Global equities had returned 18% over the 12-month period, UK equities over 20%, and Asia Pacific markets 47%, whilst returns on other asset classes such as UK gilts, corporate bonds, property and cash had been more limited but still generally positive.

The key highlights of the report were noted as follows:

·            Regarding total Fund performance, members were advised that the Fund had returned 12.7% over the 12-month period, compared with a benchmark return of 12.2%, though the latest three-month return had been negative, reflecting the impact of the war in Iran late in the quarter. Over three years, the Fund had achieved an annualised return of 9.2%, which was slightly behind its predicted benchmark.

·            In relation to asset allocation, it was noted that the Fund had largely exited the London CIV Baillie Gifford Multi-Asset Fund during the first quarter of the year, in line with the decision taken following the last strategy review with the value of that holding having fallen from £110m at the end of December 2025 to £2.2m at the end of March 2026 and expected to be fully realised over the coming months, with the proceeds reinvested in the Fund's protection assets, namely the London CIV CQS Multi-Asset Credit Fund and the BlackRock UK Gilts Fund. The total growth asset allocation stood at around 58%, higher than the long-term target allocation agreed at the last strategy review; members were advised that this overweight position was deliberate, reflecting the time it would take to build out the Fund's private market investments on which officers would continue to work with the London in order to understand the plans they had for building those investments.

·            At fund manager level, it was noted that the LGIM Global Equity Fund had returned 17.7% over 12 months against  ...  view the full minutes text for item 6