The Pension Committee of Gloucestershire Council met on Thursday 11 June 2026 to discuss the Gloucestershire Pension Fund's governance, operations, funding, and investment performance. The meeting's agenda included updates on the external audit plan, draft financial statements, and the fund's business plan for the upcoming year. Attendees were also scheduled to review the risk register, consider climate transition analytics, and discuss the draft investment strategy statement.

Audit Plan 2025-26

The committee was scheduled to review the external audit plan for the financial year ending 31 March 2026, prepared by KPMG. This plan outlines the audit approach, timeframe, and associated fees. Key areas of focus for the audit included the valuation of investments, management override of controls, and the accuracy of contributions. The audit was expected to commence in June 2026, with formal findings to be presented in September.

Pension Fund Draft Financial Statements 2025-26

The committee was asked to note the draft financial statements for the Gloucestershire Pension Fund for the year ending 31 March 2026. These statements indicated a gain of 10.4% over the year, with the Fund's overall value increasing by £371.9 million to £3,962.4 million. Management expenses had increased by 5.4% to £34.734 million, largely due to costs associated with the forthcoming closure of the Brunel Pension Partnership and the establishment of governance arrangements with LGPS Central.

Gloucestershire Pension Fund Update – Governance & Operations

This report provided an update on governance and operational matters. Key discussion points included the Pension Schemes Act 2026, amendments to LGPS regulations concerning member benefits and elected member pensions, and the new LGPS (Pooling, Management and Investment of Funds) Regulations 2026. The committee was also scheduled to review the Fund's risk register, noting that risks related to the transition to LGPS Central had moved back to target. An update on the Fit for the Future reforms was also on the agenda, outlining implementation workstreams and timelines. Operational matters included a review of Key Performance Indicators (KPIs), with performance generally remaining above the 90% threshold, and the budget outturn for 2025/26, which showed an overspend of £1.453 million. The Business Plan for 2026/27 was also presented, detailing core projects such as asset pool transition, governance reforms, and cyber security.

Gloucestershire Pension Fund Update – Funding & Investment

This report focused on the Fund's funding position, investment performance, and responsible investment activity. The estimated funding position at 31 March 2026 showed a surplus of £1.23 billion, with a funding level of 145%. Investment performance over the quarter to 31 March 2026 saw the Fund's market value decrease by £67.753 million to £3,957.742 million. Over the previous 12 months, the Fund's assets underperformed the strategic benchmark by 2.9%, with a return of 10.0%. The report also detailed investment activities, including calls into private markets, and the strategic asset allocation, which remained outside target allocations. The transition of assets from Brunel Pension Partnership to LGPS Central was noted as substantially complete, with remaining activity focused on embedding governance processes. Updates on responsible investment included the LAPFF Quarterly Engagement Report and the Brunel Climate Change Progress Report 2026.

Annual Review of Analytics for Climate Transition

This report provided an update on the Fund's net zero commitments. Key findings indicated continued strong progress on portfolio decarbonisation, with listed equities ahead of target and corporate bonds on track. However, progress on alignment and stewardship was noted as slower, requiring further improvement to meet 2027 and 2030 targets. The analysis also highlighted the increasing emphasis on real economy decarbonisation and the need for further work on private market data availability before formal targets could be set. Next steps included considering formalising 2035 targets, exploring a climate solutions target, and potentially allocating to natural capital.

Draft Investment Strategy Statement & Investment Policy Review

This report provided an update on the review and development of the Fund's Investment Strategy Statement (ISS) and Investment Policy. The timetable for finalising these documents had been extended to December 2026 to align with the expected publication of statutory guidance. A draft ISS was presented for information, reflecting initial outputs from an investment beliefs workshop. The report also summarised the findings of a Responsible Investment Member Survey, which indicated strong support for responsible and sustainable investment, with a preference for active engagement over divestment. Climate change was identified as the primary ESG priority.

Gloucestershire Pension Fund Funding & Investment Performance Benchmarking

This paper presented the findings of the funding and investment performance benchmarking for the Gloucestershire Pension Fund. The 2025 actuarial valuation confirmed a strong funding position, with a funding level of 152% and a surplus of £1.2 billion. The Fund ranked highly compared to its peers. Employer contribution rates had decreased significantly to 19.3% of pay. The report also provided a provisional summary of the Fund's total performance relative to the LGPS universe average, indicating outperformance across all reported periods.

The meeting was scheduled to conclude with the exclusion of the press and public for the discussion of exempt minutes and further business updates.