The Avon Pension Fund Committee Investment Panel was scheduled to discuss the forward agenda for the upcoming year, including updates on investment performance and risk management. The panel was also set to review the investment performance report for the period ending 30 June 2026.

Forward Agenda

The panel was scheduled to consider the forward agenda for the 2026/27 period. This agenda was provisional and subject to change based on emerging issues and delegated work from the main Committee. A key focus for the investments team throughout the year was expected to be the ongoing changes in pooling arrangements. The provisional agenda included discussions on pooling: investments implementation and strategy, and an update on the Local Impact Portfolio, specifically Affordable Housing, scheduled for the November 26, 2026 meeting. Routine items such as Quarterly Investment Performance and Risk Management Framework Monitoring were also planned for this date, as well as for subsequent meetings on March 5, 2027, and June 11, 2027. The report recommended that the Panel note the forward agenda.

Investment Performance Report

The meeting was scheduled to include a review of the Investment Performance Report for the periods ending 30 June 2026. This report would have provided an update on the Fund's assets, which stood at £6,323m on 31 December 2025, delivering a net return of 2.6% over the quarter. This was noted as being 0.9% behind the strategic benchmark. The report also indicated that the estimated funding level stood at 108% at 31 December 2025, with a surplus of approximately £472m. Over the year to the end of December 2025, the Fund returned 7.5% in absolute terms and -1.7% in relative terms. Global markets had shown momentum in the fourth quarter of 2025, supported by easing inflationary pressures and improving economic sentiment.

The report also detailed the Local Impact Portfolio, which has a 5% strategic allocation across three core themes: renewable infrastructure, affordable housing, and SME funding. As of 31 December 2025, £180m had been committed to underlying managers, with approximately £67m deployed. The report noted that the pace of capital deployment and the developing pipeline of opportunities were meeting expectations. Specifically regarding affordable housing, there was a strong pipeline of opportunities in the South West, and the Fund had been asked to consider topping up its allocation to support high-potential sites in the region. A recommendation on this would be brought back to the Panel in due course.

The report also touched upon the performance of various mandates. Equity performance had been realised more quickly than expected, showing around four years' worth of regular performance in the last 12 months. Brunel UK Property Returns were noted as being below expectations since December 2022 due to challenges in property markets, but were on an upward trend. The Renewable Energy sector was experiencing recent headwinds, placing the asset class under some pressure.

Risk Management Framework Review

A review of the Risk Management Framework for the periods ending 30 June 2026 was also scheduled. This review is a key aspect of the risk management process, ensuring an effective governance structure with clear responsibilities and adequate access to expert advice. The report indicated that the Fund is implementing a digital strategy to reduce its internal carbon footprint and addresses the financial risks of climate change through its strategic asset allocation to Paris Aligned Equities, Sustainable Equities, and renewable energy opportunities.