The Gloucestershire Pension Board is scheduled to convene on Wednesday 29 July 2026 to review a range of updates concerning the Pension Fund's governance, financial performance, and investment strategy. Key discussions are expected to cover the Fund's financial statements and audit plan, progress on net zero commitments, and the development of the Investment Strategy Statement and Investment Policy.

Pension Fund Draft Financial Statements and Audit Plan

The Board is scheduled to review the draft financial statements for the Gloucestershire Pension Fund for the year ending 31 March 2026. These statements, prepared in accordance with accounting regulations, are subject to external audit by KPMG. The report will also outline KPMG's External Audit Plan for the financial year, detailing their approach, audit cycle, and associated fees. The draft financial statements indicate a gain of 10.4% over the 12 months, with the Fund's overall value increasing to £3,962.4 million, reflecting a strong financial position. Management expenses have seen an increase, primarily due to investment management costs related to the closure of the Brunel Pension Partnership and the establishment of governance arrangements with LGPS Central.

Gloucestershire Pension Fund Business Update – Governance & Operations

This update will provide the Board with information on governance and operational matters. It is scheduled to cover the minutes from the Pension Committee meeting on 11 June 2026, details of the new regulatory framework the Fund will operate under, and the delegations actioned to enable the Fund to join LGPS Central. The report will also present the Risk Register, including amendments, and provide governance and operational updates, such as the 2025/26 budget outturn and the Business Plan for 2026/27. The Business Plan highlights core projects including the asset pool transition to LGPS Central, compliance with Fit for Future reforms, cyber security measures, and the continued rollout of the employer portal, i-Connect.

Gloucestershire Pension Fund Business Update – Funding & Investments

The Board will receive an update on the Fund's funding position and investment performance as at 31 March 2026. This includes information on the Fund's market value, asset allocation, and investment returns. The report will also detail progress on the Fund's net zero commitments, including portfolio decarbonisation efforts in listed equities and corporate bonds, and the status of stewardship and engagement activities. The transition of assets from Brunel Pension Partnership to LGPS Central is noted as substantially complete, with remaining activity focused on embedding governance processes. The report highlights that the listed equity portfolio has achieved its interim decarbonisation target, and the corporate bond portfolio is on track to meet its target. However, progress on alignment and stewardship is noted as slower, requiring further improvement to meet future targets.

Draft Investment Strategy Statement & Investment Policy Statement

This item concerns the review and development of the Fund's Investment Strategy Statement (ISS) and Investment Policy. The report will provide an updated timetable for finalising these documents, extending to December 2026, to align with the publication of statutory guidance. A draft ISS, reflecting initial outputs from an investment beliefs workshop and the Fund's approach to responsible investment, stewardship, and local investment, will be presented for the Board's feedback. The results of a member survey on responsible investment are also to be discussed, indicating strong support for sustainable investment and active engagement with companies, though awareness of the Fund's current policy is noted as low.

GPF Funding & Investment Performance Benchmarking

The Board is scheduled to review the findings of the benchmarking analysis for the Gloucestershire Pension Fund's 2025 actuarial valuation. This analysis compares the Fund's position against the national LGPS picture and peer funds. The report indicates a strong funding position, with a funding level of 152% as at 31 March 2025, placing the Fund in the top quartile of LGPS funds. Employer contribution rates have seen a significant reduction. The report attributes the funding improvement to increased assumed future investment returns and positive investment performance over the valuation period. The Fund's investment performance over one, three, five, and ten years is noted to have outperformed the LGPS universe average.

Pension Board Annual Report 2025-26

The Board is asked to provide feedback on and approve the draft Annual Report for the 2025-26 financial year. This report will detail the business conducted by the Board, including any risks or concerns identified. It will also outline the Board's future work programme for 2026/27, which will focus on core projects such as the asset pool transition, compliance with Fit for Future reforms, and the development of a revised Investment Strategy Statement.

Exclusion of Press and Public

A portion of the meeting is scheduled to be held in private session, in accordance with Section 100 A (4) of the Local Government Act 1972. This is to allow for the disclosure of exempt information relating to specific agenda items, where the public interest in withholding the information outweighs the public interest in disclosing it.

Pension Board Exempt Minutes and Gloucestershire Pension Fund Business Update (Exempt)

Following the exclusion of the press and public, the Board is scheduled to approve the exempt minutes from its meeting on 28 April 2026. Additionally, an exempt update on the Gloucestershire Pension Fund's activities will be presented, providing more detailed analysis and commentary on investment activities, performance, governance, and operations. This is intended to be read in conjunction with the public reports.