The Pensions and Investments Committee was scheduled to consider a range of reports concerning the Derbyshire Pension Fund's investment strategy, administration performance, and risk management. Key discussions were scheduled to focus on the updated Investment Strategy Statement, the performance of the Pension Fund's administration, and the ongoing management of risks faced by the Fund.

Investment Strategy Statement

The Committee was scheduled to consider the updated draft Investment Strategy Statement (ISS) for the Derbyshire Pension Fund. This statement, prepared in accordance with the Local Government Pension Scheme (Pooling, Management and Investment of Funds) Regulations 2026, outlines the Fund's objectives, priorities, and preferences for investing its assets. The proposed ISS consolidates the existing standalone Investment Strategy Statement, Responsible Investment Framework, and Climate Strategy into a single document.

The statement was scheduled to detail four high-level financial objectives:

• Return Objective: To generate a return at least equal to the investment return assumed by the actuary in the actuarial valuation, which was 5.8% per annum over the next 20 years based on the 31 March 2025 valuation.
• Risk Objective: To consider a range of risk indicators, including diversification, volatility, and the probability of achieving the required rate of return.
• Cash Flow Objective: To ensure sufficient cash flow to meet liabilities on a rolling twelve-month basis, with an operational cash reserve of around 1% of investment assets.
• Local Investment Objective: To allocate up to 2% of assets to local investments over an appropriate time horizon, with specific targets for investments within the LGPS Central Pool footprint and those delivering economic benefits to the Derbyshire region and the East Midlands Combined County Authority (EMCCA) footprint.

The proposed Strategic Asset Allocation Benchmark (SAAB) was scheduled to include adjustments to asset classes, such as an increase in Listed Equities from 44.0% to 46.0% and a decrease in Private Equity from 6.0% to 4.0%. The statement also detailed the Fund's approach to Responsible Investment (RI), proposing to adopt the Core RI approach, which integrates ESG factors into investment processes and stewardship activities to support real-world decarbonisation.

The report included a review of the draft ISS by the Fund's independent investment adviser, Anthony Fletcher, who found it to be consistent with the Fund's aims and compliant with regulations. The Committee was scheduled to consider approving the updated draft ISS for consultation with stakeholders.

Derbyshire Pension Board

The Committee was scheduled to receive an update on the activities of the Derbyshire Pension Board. The Board, established in 2015, assists the Council as the administering authority to ensure compliance with LGPS regulations and effective governance. Its work during 2025-2026 included monitoring operational activities, the implementation of the LGPS McCloud remedy, the Pension Fund's risk register, and oversight of the pooling company, LGPS Central Limited. The Board's workplan for the current year was scheduled to include supporting policy changes, member training, an Independent Governance Review, and monitoring the LGPS investment pooling arrangements.

Half-Year Pension Administration Performance Report

A report was scheduled to update the Committee on the pension administration activity and performance levels achieved by the Derbyshire Pension Fund's administration team for the first half of the 2026/2027 financial year (1 April 2026 to 30 September 2026). The report was expected to highlight strong administration performance despite increased complexity due to legislative changes such as the McCloud remedy and Access and Fairness reforms. It was also scheduled to detail the team's structure, recruitment efforts, training initiatives, and workload data, including key performance indicators against statutory disclosure requirements. The report was to include updates on Local Government Reorganisation preparations, working arrangements, communications and engagement activities, and participation in national and regional networking groups.

Derbyshire Pension Fund Risk Register

The Committee was scheduled to consider the Derbyshire Pension Fund's Risk Register. This register identifies key risks, their potential impact, probability, and overall risk score, along with mitigation controls and proposed further actions. The report highlighted four high-risk items:

• Systems failure/Lack of disaster recovery plan/Cybercrime attack.
• LGPS Central Limited related underperformance of investment returns.
• Insufficient cyber-liability insurance relating to the pensions administration system.
• Impact of the McCloud judgement on administration.

The report was to detail the current risk scores, target scores, and trend scores for various risk areas, including governance, funding, investments, and pensions administration. Potential emerging risks, such as the impact of local government reorganisation and the consolidation of LGPS members by national Multi-Academy Trusts, were also scheduled for discussion.

Derbyshire Pension Fund Annual Report 2025-26

The Committee was scheduled to consider seeking approval for the publication of the Derbyshire Pension Fund's Annual Report for 2025-26. Due to the ongoing external audit of the Council's and Pension Fund's Statement of Accounts, the standard procedure of presenting the report to the Committee before 1 December could not be followed. Approval was sought for the Director of Finance, in conjunction with the Chair of the Committee, to approve the publication of the Annual Report on the Fund's website once the external auditor's opinion was received. Approval was also sought for the potential publication of a draft version of the report by 1 December 2026. The Annual Report was described as a comprehensive document covering key statistics, governance, financial performance, investment, funding, scheme administration, and the Statement of Accounts.