The Pension Fund Committee of Oxfordshire Council met on Friday 05 June 2026 to review the Annual Business Plan for 2026/27, discuss the Fund's risk register, and consider governance and communications reports. The committee also received updates on investment performance, corporate governance, and socially responsible investment.

Review of the Annual Business Plan 2026/27

The committee was scheduled to review progress against the key priorities outlined in the Annual Business Plan for 2026/27. This plan, developed with input from committee and board members, focuses on four key areas: improving governance arrangements, enhancing operational effectiveness in service delivery and administration, developing investment and funding services, and delivering service enhancements through increased use of technology. The report indicated that while progress was generally good, challenges remained in areas such as the Workforce Strategy, procurement, and the implementation of government policies on Access and Fairness and Access and Protections. Specific measures of success were rated Green, Amber, or Red, with the Workforce Strategy action being rated Red due to ongoing recruitment and retention issues. The report also detailed progress on the 'Fit for the Future' initiative, including the upcoming appointment of a Senior LGPS Officer and the preparation for an Independent Governance Review. Updates on Local Government Reform (LGR) were also provided, noting that the risk register had been updated to reflect potential impacts on Fund services.

Risk Register Report

This report was set to present the latest position on the Fund's risk register, including any new risks identified since the previous meeting. The Local Pension Board had reviewed the register and recommended a review of Risk 19, Failure of Pooled Vehicle to meet local objectives, with a view to reducing its rating, as this was considered to be beyond the control of officers and largely driven by government policy on pooling. A recommendation was also made to add a new risk related to Local Government Reorganisation (LGR) and its potential impact on the host authority's provision of support services to the Fund. New emerging risks identified included Insufficient workforce resources due to ineffective recruitment, attraction and retention (Risk 25) and Local Government Reorganisation (Risk 26).

Governance and Communications Report

The committee was to receive a report covering key governance and communication issues for the Fund, including an update on compliance with the General Code of Practice for 2026/27. This code comprises 51 modules, with 37 applying to the LGPS and covering areas such as Governing Body, Funding and Investments, Administration, Communications and Disclosure, and Reporting to The Pensions Regulator (TPR). An 'Oversight & Challenge' exercise by Hymans Robertson had concluded that the fund was in a 'good' position regarding General Code of Practice compliance. A 12-month plan was in place to improve and maintain compliance, with specific activities scheduled for 2026/27, including the completion of outstanding actions and detailed reviews of six modules. The report also included an update on Pension Fund Committee training, with a focus on developing members' knowledge and skills to meet regulatory requirements, including the completion of LGPS Online Learning Academy (LOLA) modules and participation in the National Knowledge Assessment. The committee was also asked to approve a revised Local Pension Board Constitution, which included minor amendments. Finally, the report detailed regulatory breaches for the period January to March 2026, with a breakdown of breach types and the number escalated, resolved, or carried over.

Report of the Independent Investment Advisor

This report was scheduled to provide an overview of the financial markets, the overall performance of the Fund's investments against the Investment Strategy Statement, and commentary on issues related to specific investment portfolios. The report included quarterly investment performance monitoring from Brunel. It was noted that despite geopolitical instability, the Fund had achieved positive returns, with Global Equities increasing by 21% in local currency terms over the past year. However, the three-to-five-year fund performance had lagged benchmarks, primarily due to underperformance in the global high alpha and sustainable equity portfolios managed by Brunel. The report also discussed asset allocation changes, including increased UK exposure, inflation-linked assets, and infrastructure, alongside reduced US equity exposure. Concerns were expressed regarding the need for an independent advisory role to the committee to ensure accountability and challenge, particularly in light of investment decision-making shifts during the move to the new Pool.

Corporate Governance and Socially Responsible Investment

This item provided an opportunity to raise any issues concerning Corporate Governance and Responsible Investment that needed to be brought to the attention of the Committee. An update on responsible investment activities was to be presented, including the results of a member survey on investment priorities, engagement with companies such as Microsoft, and the climate alignment process. The member survey indicated strong support for responsible investment, with two-thirds prioritising positive impact and one-third prioritising financial returns. The report also noted that 12 companies were identified as climate controversial, with recommendations for divestment from three of those. The committee's intention to share its robust framework with LGPS Central and seek alignment on responsible investment practices was also to be highlighted.

Funding and Investments Update

This report covered updates on fund cashflow monitoring, pool transition costs, and local investments. The committee was to receive information on fund cashflow monitoring, pool transition costs, and local investments. The report detailed progress on finalising the 2025 valuation and the strategic asset allocation review. It also sought approval for the Investment Strategy Statement, Funding Strategy Statement, and supporting policies. The committee was to review responses to a consultation exercise and note comments from employers.

Pooling Transition Update

An LGPS Central representative was scheduled to present a transition progress report to the committee. The committee was recommended to note the report.

Local Government Reorganisation Fund Structure Update

This report was to update the committee on the approach to identifying the appropriate Fund structure post Local Government Reorganisation (LGR). The committee was recommended to review an independent report from Barnett Waddingham, note the details within, and agree the approach for Fund officers to explore further options. Additionally, the committee was to agree that Fund officers continue engagement with stakeholders and the Government ahead of any formal designation decision by the Secretary of State.

Approval of Senior LGPS Officer

This report presented the final recommendation for the appointment of the Senior LGPS Officer. The committee was recommended to review an independent report from Aon, note the suggested actions, and agree the appointment of the Senior LGPS Officer as the Head of Pension Fund role. Further updates were to be provided as 'Fit for the Future' changes were implemented over the next seven months.

Exempt Items

The committee was recommended to exclude the public for the duration of items 15, 16, and 17, as it was likely that exempt information would be disclosed. This was considered necessary as the public interest in maintaining the exemption outweighed the public interest in disclosing the information. Reports relating to these items were not made public and were regarded as strictly private.