The Pensions and Investments Committee of Derbyshire Council met on Wednesday, 4 March 2026, to discuss the Derbyshire Pension Fund's investment strategy, service plan, and funding strategy. The committee was scheduled to review investment performance, consider an addendum to the Investment Strategy Statement, and approve the 2026-27 Service Plan and Treasury Management Strategy.

Investment Report

The committee was scheduled to review the Derbyshire Pension Fund's Investment Report, which included an analysis of asset allocation, investment activity, and long-term performance. The report detailed the Fund's asset allocation as of 31 January 2026, comparing it against the benchmark and outlining recommendations from the Director of Finance and the Fund's external adviser, Mr. Fletcher. The report also provided an overview of market returns over the preceding twelve months, with a particular focus on global equities, UK equities, and various bond markets. Performance figures for the Fund over one, three, five, and ten years were presented, highlighting areas of outperformance and underperformance against benchmarks. The report also included recommendations for adjustments to the asset class weightings, with a particular focus on Growth Assets, Income Assets, and Protection Assets.

Investment Strategy Statement Addendum

A key item on the agenda was the approval of an addendum to the Derbyshire Pension Fund's Investment Strategy Statement. This addendum was necessary to align the Fund's Strategic Asset Allocation Benchmark (SAAB) with new guidance expected from the Ministry of Housing, Communities and Local Government (MHCLG) regarding Local Government Pension Scheme (LGPS) funds. The report detailed a mapping exercise that allocated the Fund's current SAAB into nine asset classes as defined by the MHCLG guidance, with no change to the overall composition of the Fund's investment assets. The addendum also included benchmark return expectations for each asset class and adjustments to the tolerance ranges for listed equities and UK Government Bonds.

Stewardship Report

The committee was to receive an overview of the stewardship activities undertaken by LGPS Central Limited (LGPSC), the Fund's pooling company. The report noted that the Derbyshire Pension Fund's signatory status to the UK Stewardship Code 2020 had ceased in January 2026, and the Fund was assessing its participation in the new UK Stewardship Code 2026. The report attached the Q4 2025 LGPSC Stewardship Report, detailing LGPSC's key stewardship themes, voting, and engagement activities across various sub-funds and pooled arrangements managed on behalf of the Fund.

Derbyshire Pension Fund 2026-27 Service Plan

The committee was asked to approve the Derbyshire Pension Fund's Service Plan for 2026-27, which included the annual budget of £42.434 million. The Service Plan outlined the Fund's objectives, key services, achievements in 2025-26, and a forward plan for procurements. It also detailed the 2025-26 forecast budget outturn and the proposed budget for 2026-27, highlighting the impact of factors such as pay increases, expected changes in LGPSC charges, and a forecast increase in Assets Under Management (AUM). The plan also included cash flow forecasts to 31 March 2029 and key performance indicators for 2026-27.

Treasury Management Strategy 2026-27

The committee was scheduled to approve the draft Treasury Management Strategy for Derbyshire Pension Fund for 2026-27. The strategy reiterated the Fund's priority of security of capital and liquidity over investment return, consistent with the County Council's Treasury Management Strategy. It noted the expected reduction in cash holdings over 2026-27 due to the transition of investment cash management to LGPS Central Limited as part of the 'Fit for the Future' proposals. The strategy outlined requirements for investing surplus funds, including limits on counterparties, time, and sector exposure, and detailed the Fund's approach to managing credit risk and liquidity.

Funding Strategy Statement Consultation

The committee was to be informed of the outcome of the consultation on the proposed Funding Strategy Statement (FSS) for Derbyshire Pension Fund and to approve the final FSS. The FSS, prepared in accordance with MHCLG guidance, outlines the Fund's funding policies, actuarial assumptions, and time horizons for employers. The report summarised the responses received from the Department for Education and the University of Derby, along with the Fund's responses. It was noted that no changes to the draft FSS were deemed necessary based on the consultation feedback. The FSS, effective from 1 April 2026, sets out the principles for calculating employer contributions and managing funding risks.