The Pensions Fund Committee - Investment Sub-Committee met to review investment performance, stewardship activities, and current market conditions. Discussions were scheduled to cover the quarterly performance report, stewardship and engagement efforts, and updates on investment topics.

Stewardship and Engagement Report

The committee was scheduled to receive an update on the stewardship and engagement activities related to the Fund's investments for the period ending 31 March 2026. This included details on the Fund's voting activity within the ACCESS pool, where investment managers are expected to exercise voting rights and engage with companies to promote good governance. The report was to outline the number of resolutions voted on, the outcomes of those votes, and instances where managers voted contrary to ACCESS guidelines. It was also to summarise engagement activities undertaken by ACCESS sub-fund managers and directly by the Fund, as well as the activities of the Local Authority Pension Fund Forum (LAPFF). A specific point of discussion was to be correspondence received from the Palestine Solidarity Campaign (PSC) regarding investments in companies alleged to be linked to breaches of International Humanitarian Law, with a recommendation to note the summarised legal guidance and a draft response.

Current Investment Topics - Update

An update was scheduled on current investment topics, with a focus on geopolitical developments and their potential impact on financial markets. This included discussions on the situation in the Middle East and its implications for oil flow and inflation, as well as the broader economic outlook. The report was also to address the growing influence of Artificial Intelligence (AI) on capital markets, including AI-related earnings, capital expenditure, and potential risks of concentration in asset portfolios. Mercer was expected to present on these matters, offering insights into various economic scenarios and risk management approaches.

Quarterly Performance Report for the period ending 30 June 2026

The committee was to review the quarterly performance report for the period ending 30 June 2026. This report was to provide an overview of the Fund's financial position, including its funding level, which had reportedly improved. The performance of various asset classes, such as equities, bonds, infrastructure, property, and private equity, was to be detailed, along with comparisons to benchmarks. The report was also to highlight changes in the Fund's Strategic Asset Allocation (SAA) and provide a traffic light overview of key considerations for the committee, including the ongoing transition of portfolios to the Border to Coast Pensions Partnership (BCPP).

Asset Transition and SAA Update

A discussion was planned regarding the asset transition and the Strategic Asset Allocation (SAA). This item was likely to cover the ongoing process of moving assets within the Fund's portfolio and any adjustments or confirmations related to the SAA.

BCPP Capabilities and Workstreams Update

The committee was scheduled to receive an update on the capabilities and workstreams of the Border to Coast Pensions Partnership (BCPP). This would likely cover BCPP's operational framework, its approach to portfolio implementation, and its stewardship and engagement activities.

BCPP Introductory Briefing

An introductory briefing on BCPP was also on the agenda. This would provide an overview of BCPP's structure, objectives, and how it operates, particularly in relation to the management of the Pension Fund's assets.