The Pension Fund Committee of Durham County Council was scheduled to discuss the overall value and performance of the pension fund's investments, alongside a review of the audit strategy and regulatory updates. The meeting also included a detailed examination of the Pension Fund Service Plan for 2026-27 and feedback from the Local Pension Board.

Overall Value and Performance of Pension Fund Investments

The committee was scheduled to receive an update on the overall value of the Pension Fund's investments as of 31 March 2026. A report indicated that the total value of the fund was £3.995 billion, with a cash balance of £43.013 million held by Durham County Council Pension Fund and an additional £35.622 million held by fund managers. The report also detailed rebalancing activities undertaken during the quarter, including the transfer of holdings in two CBRE assets to Border to Coast Pensions Partnership (BCPP) to fund an initial subscription to the BCPP Global Core Real Estate Fund.

A separate report was scheduled to provide an overview of the investment performance of the Pension Fund up to 31 March 2026, as measured against personalised benchmarks. This report, produced by the Fund's custodian, Northern Trust, was expected to detail the performance of individual fund managers.

Audit Strategy and Regulatory Updates

The committee was set to consider a draft Pension Fund Audit Strategy Memorandum for the year ending 31 March 2026. This memorandum, prepared by Forvis Mazars LLP, outlined the planned scope and timing of the audit, identified significant and enhanced audit risks, and addressed the auditors' independence. Key risks highlighted included management override of controls and the valuation of investments within Level 3 of the fair value hierarchy.

A regulatory update was also scheduled, briefing the committee on developments affecting the Local Government Pension Scheme (LGPS). This included information on new LGPS regulations concerning member benefits, such as the equalisation of survivor benefits and gender pension gap reporting. The update also covered the introduction of LGPS membership for English councillors and mayors, and new governance regulations requiring the appointment of a senior officer and an independent person, alongside the development of governance and training strategies. Furthermore, regulations concerning the pooling, management, and investment of funds were to be discussed, reinforcing the requirement for administering authorities to participate in a single asset pool and for these pools to have Financial Conduct Authority authorisation.

Local Pension Board and Service Plan

The committee was to receive the Local Pension Board's Annual Report for 2025/26. This report provided an overview of the Board's work in assisting the Administering Authority with compliance, governance, and administration of the LGPS. The report detailed the Board's activities during meetings in December 2025 and March 2026, including discussions on membership, performance, regulatory updates, and investment pooling. Performance indicators for pension administration, covering casework processing and communications, were also to be presented.

The Pension Fund Service Plan for 2026-27 to 2028-29 was also on the agenda. This plan outlines the Fund's aims, objectives, and intended actions over the three-year period, focusing on administration, governance, and investment. It acknowledges external factors such as regulatory changes and market uncertainty, aiming to build resilience and ensure sustainable service delivery. The plan details key areas of focus, including the transition of investments to Border to Coast Pensions Partnership, implementation of regulatory reforms, data quality improvement, and connection to the national pensions dashboard.

Investment Strategy and Manager Reports

In Part B of the meeting, which was considered to be exempt from public attendance, the committee was scheduled to review various investment-related reports. These included the Investment Strategy Review, the Report of the Independent Adviser (Anthony Fletcher of Apex Group), and the Annual Review of Equities. Additionally, reports from the Pension Fund Adviser (Sandy Dickson of Mercer), the Border to Coast Pensions Partnership Quarterly Performance Report, and individual reports from investment managers Alliance Bernstein, CBRE Global Investment Partners, Foresight, and LGIM were to be considered. These reports were expected to cover managers' views on the economy and investment strategy, investment policies, and lists and valuations of investment holdings.