The Bromley Council Pensions Committee was scheduled to meet to discuss the performance of the pension fund and a review of its strategic asset allocation. The committee was also expected to discuss updates from the Chairman, the Director of Finance, and the Pensions Investment Advisor.

Strategic Asset Allocation

A report on the strategic asset allocation (SAA) of the pension fund was prepared for discussion at the meeting. The report noted that the current SAA was last changed in 2019, with a small adjustment made in November 2024 to increase investment in UK property.

The report stated that Apex Investment Advisory was commissioned to conduct a review of the strategy, and their report was included as an appendix. The Apex report provided six options: the current allocation, the current SAA, and four alternative options. The report recommended alternative option 1, which included a 5% allocation to each of index-linked gilts and social/affordable housing, a 3% increase to global equities, and a 7% increase to fixed income (corporate bonds and conventional gilts), with full divestment of multi-asset income funds and cash proceeds from international property.

The Chairman and Vice-Chairman of the Committee had previously circulated proposed allocations to committee members, detailed in an email from Councillor Christopher Marlow, Vice-Chairman of the Pensions Committee. The proposed allocations included: 60% in global equities; 25% in fixed income (15% in conventional gilts, 5% in index-linked gilts, and 5% in a UK corporate bond fund); 10% in UK property; and 5% in social housing/projects.

The committee was asked to consider the proposed changes to the pension fund's strategic asset allocation, taking into account the comments from the independent advisor, and to delegate the implementation of the revised strategy to the Director of Finance in consultation with the Chairman and Vice Chairman, reporting back to future meetings on progress. The committee was also asked to note that the London Collective Investment Vehicle (LCIV) would have a role in implementing the strategy.

The report included several appendices to assist members in determining the revised asset allocation strategy, including:

• Notes of a meeting with fund managers on 7 October 2025
• LCIV initial thoughts
• The Apex Strategic Asset Allocation Review report
• LCIV comments on SAA (28 October 2025)
• Councillor Marlow's email to committee members
• Comments from the Independent Investment Adviser, John Arthur

John Arthur, the Independent Investment Advisor, noted in his comments that:

In the recent actuarial review, the actuary set aside 30% of the Fund's assets as a stabilisation reserve to cover future uncertainty, this raises a question about how this part of the Fund should be invested.

He also stated that he favoured options 1&2 in the Apex report, and that he supported the committee's desire to invest locally, but recognised that it was driven by their local politics over their fiduciary duty.

Councillor Marlow's email to committee members stated that:

What makes this year different is that we are under an obligation to transfer LBB's pension scheme assets to LCIV by 31st March 2026. This requirement applies to all Local Government Pension Scheme (LGPS) employers in England and Wales.

Pension Fund Performance

The committee was scheduled to discuss a report providing a summary of the investment performance of Bromley's Pension Fund in the second quarter of 2025/26. The report also contained information on general financial and membership trends of the Pension Fund, summarised information on early retirements, and key developments in the Local Government Pension Fund (LGPS) expected during the next five years.

The report included the quarterly performance report from Apex, which stated that:

The Fund valuation has now reached over £1.6bn having returned 5.9% over the third quarter of 2025 driven by strong returns across almost all asset classes with the exception of UK Government Gilts.

The Apex report also noted that both Global Equity managers underperformed their benchmark over the quarter as the US mega sized tech stocks again dominated returns.

The report also included a business case for Buckinghamshire Pension Fund to join the London CIV pool. The report noted that Buckinghamshire Pension Fund's stated reasons for wanting to join London CIV included access to the London CIV Authorised Contractual Scheme¹, enhanced governance and regulatory compliance, and broad solutions and investment approach.

Other Matters

The agenda also included:

• Confirmation of the minutes of the meeting held on 28 August 2025
• Updates from the Chairman, Director of Finance, and Pensions Investment Advisor
• Exclusion of the press and public during consideration of items involving exempt information, including confirmation of exempt minutes, strategic asset allocation part 2 (exempt) information, and updates from the Chairman/Director of Finance/Pensions Investment Advisor (part 2)