The Pension Fund Committee of Durham County Council met on Thursday 11 June 2026 to review the overall value and performance of the pension fund's investments. The meeting agenda also included discussions on the audit strategy, regulatory updates, and the pension fund's service plan for the upcoming years.

Overall Value of Pension Fund Investments to 31 March 2026

The committee was scheduled to receive an update on the overall value of the Pension Fund's investments as of 31 March 2026. The report indicated that the total value of the fund stood at £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.

Performance Measurement of Pension Fund Investments to 31 March 2026

A report from the Fund's custodian, Northern Trust, was scheduled to provide an overview of the investment performance up to 31 March 2026. This report was expected to detail the fund managers' benchmarks, the total fund performance for the quarter, and the performance over one, three, five, and ten years, as well as since inception. It was also to include individual fund managers' performance in absolute and relative terms against their respective benchmarks.

Pension Fund Audit Strategy Memorandum (Draft) Year Ending 31 March 2026

The committee was to consider a draft Audit Strategy Memorandum for the year ending 31 March 2026. This document, prepared by Forvis Mazars LLP, outlined the planned scope and timing of the audit, identified significant and enhanced audit risks, and summarised considerations regarding auditor independence. Key risks highlighted included the potential for management override of controls and the valuation of investments within level 3 of the fair value hierarchy. The memorandum also detailed the proposed audit timeline, materiality levels, and audit fees.

Regulatory Update

A report was scheduled to brief the committee on developments in both LGPS-specific matters and other relevant non-LGPS issues. This included updates on new LGPS regulations concerning member benefits, such as the equalisation of survivor benefits and gender pension gap reporting, and the introduction of LGPS membership for English councillors and mayors. The committee was also to be informed about the Fit for the Future changes to LGPS regulations, which mandate the appointment of a senior officer responsible for the fund, an independent person for advice, and the development of governance and training strategies. Furthermore, updates on the LGPS (Pooling, Management and Investment of Funds) Regulations 2026 were expected, detailing requirements for participation in a single asset pool and the formulation of investment strategies. Non-LGPS matters included changes to SCAPE factors for public service pension schemes and the progress of the national Pensions Dashboard initiative.

Local Pension Board Annual Report 2025/26

The committee was to receive an overview of the work completed by the Local Pension Board during the 2025/26 year. The report was expected to detail the Board's assistance to the Administering Authority in securing compliance with regulations and ensuring the effective governance and administration of the Local Government Pension Scheme. The report was to cover the Board's meetings, its role in scrutinising performance against agreed indicators for retirements, deferments, transfers, and estimates, and the take-up of the Fund's online services.

Pension Fund Service Plan 2026-27

The committee was presented with the Pension Fund's Service Plan for the three-year period from 2026/27 to 2028/29. The plan outlines the Fund's aims, objectives, and intended actions to support sustainable service delivery and operational resilience, taking into account external factors such as regulatory changes and market uncertainty. Key areas of focus included administration, governance, and investment. The plan detailed specific activities such as the completion of LGPS pooling, implementation of Fit for the Future provisions, development of local investment opportunities, and the connection to the national pensions dashboard.

Part B Items (Exempt from Public)

The meeting agenda also included several items scheduled for discussion in Part B, which were considered exempt or confidential. These included:

• The Minutes of the meeting held on 12 March 2026.
• A Report of the Independent Adviser.
• A Report of the Pension Fund Adviser.
• An Annual Review of Equities.
• The Border to Coast Pensions Partnership Quarterly Performance Report.
• Reports from investment managers: Alliance Bernstein, CBRE Global Investment Partners, Foresight, and LGIM.