The Pensions Panel of Staffordshire Council met on Tuesday 02 June 2026 to review the fund's investment performance and responsible investment activities. The panel noted the fund's performance for the quarter ending 31 March 2026, which saw a slight underperformance against its benchmark.

Pension Fund Investment Performance and Portfolio

The Staffordshire Pension Fund experienced a slight underperformance in the quarter ending 31 March 2026, with a fund return of -1.13% against a strategic benchmark of +0.15%. This resulted in a relative performance of -1.28%. For the financial year 2025/26, the fund returned 8.90%, which was 3.94% below its strategic benchmark of 12.84%. The total market value of the fund at 31 March 2026 was £8.401 billion, a decrease of approximately £108 million from the previous quarter. Equities were identified as the lowest performing asset class during the quarter, both in absolute terms and against the benchmark. However, longer-term performance remained in line with the strategic asset allocation benchmark, with annualised returns since inception standing at +7.85% per annum, exceeding the actuary's assumption of 5.9%. The detailed portfolio of investments as at 31 March 2026 was provided in Appendix 1.

Responsible Investment and Stewardship (RI&S) Report

The panel received the RI&S report for the quarter ending 31 March 2026, which included updates on the Local Authority Pension Fund Forum (LAPFF) Quarterly Engagement Report and the draft LGPS Central Quarterly Stewardship Report. It was noted that responsible investment practices are aligned with the Fund's fiduciary duty to protect long-term value, and that integrating these practices can enhance financial performance. The Fund has maintained its signatory status to the UK Stewardship Code for a second consecutive year, an achievement noted as being attained by only a minority of Local Government Pension Scheme (LGPS) funds.

Key engagement highlights included discussions on human rights matters with General Motors and Microsoft, governance concerns at Tesla, and ongoing thematic work on water risks. The LAPFF report detailed engagements with companies on climate transition planning, including discussions with Ryanair regarding Sustainable Aviation Fuel (SAF) and with Pennon Group regarding environmental performance and regulatory changes. The panel also discussed policies on Conflict-Affected and High-Risk Areas (CAHRAs), emphasising a consistent, policy-driven stewardship approach.

Investment Consultant and Independent Investment Adviser Objectives Review 2025/26

The panel reviewed the objectives set for the Fund's Investment Consultant, Hymans Robertson, and its Independent Investment Advisers for the 2025/26 financial year. These objectives, established in response to a Competition and Markets Authority (CMA) order, aim to ensure advisers provide measurable objectives aligned with the Fund's long-term strategic aims. The Director of Finance and Resources reported that the desired outcomes for these objectives had been met in the short term. The panel also noted the upcoming changes under the Pensions Bill 2026 and Fit for the Future reforms, which will see LGPS Central become the Fund's Principal Investment Adviser. Despite this transition, objectives for Hymans Robertson and the Independent Investment Advisers were noted for a further year in 2026/27 due to ongoing uncertainty regarding the final advisory model.

Exclusion of the Public

The public were excluded from the meeting for the remainder of the agenda items, which involved the disclosure of exempt information as defined in the Local Government Act 1972. These items included exempt minutes, strategic asset allocation updates, pension fund performance and manager monitoring, and an update from LGPS Central.

The meeting agenda included the Annual Investment Strategy for the investment of internally managed cash for 2026/27. This strategy aligns with the principles of the CIPFA Treasury Management Code of Practice and focuses on liquidity to ensure pension payments can be met.

The agenda also included the 2026/27 Investment Adviser Objectives for Hymans Robertson and the Fund's Independent Investment Advisers. These objectives are set at a high level and reflect the long-term nature of the Fund's Investment Strategy, with a focus on ensuring compliance with regulatory and legislative requirements and the continued development of the Fund's Responsible Investment (RI) beliefs.

The decision to exclude the public was made to discuss items involving the likely disclosure of exempt information, as detailed in the agenda.