The Pension Fund Committee of Durham County Council met on Wednesday 9 September 2026 to discuss the overall value and performance of the pension fund's investments, review the internal audit plan, and consider updates on regulatory matters, governance strategies, and asset pooling. The meeting also included reports from various investment managers and advisers.

Overall Value and Performance of Pension Fund Investments

The committee was scheduled to receive an update on the overall value of the Pension Fund's investments as of 30 June 2026. This included details on the fund's market value, which stood at £4.298 billion, an increase of £303 million from the previous quarter. The report also detailed the movement in the cash balance and actual cash flows for the first half of 2026, along with a forecast for the following year. Rebalancing activity undertaken during the quarter was also to be discussed, including the transfer of holdings in two CBRE assets to BCPP Global Core Real Estate Fund.

The performance measurement of the Pension Fund's investments up to 30 June 2026 was also on the agenda. This report, produced by the Fund's custodian, Northern Trust, was expected to provide an overview of investment performance, including benchmarks, total fund performance for various periods, and individual fund managers' performance against their respective benchmarks.

Internal Audit Plan Progress

A progress report on the 2026/27 Internal Audit Plan was scheduled for discussion, covering the period up to 31 August 2026. The report aimed to provide assurance on internal control systems, advise on areas requiring improvement to manage risks effectively, and detail any other audit work undertaken. The report indicated that three assurance audits brought forward from the previous year had been completed with a Substantial assurance opinion, covering Pension Fund Debt Recovery, Admission Bodies, and Cash Flow Management. Several other audits for the 2026/27 year were planned or in progress.

Regulatory Update

The committee was to be briefed on developments in both LGPS-specific matters and other relevant non-LGPS pension issues. Key LGPS developments included new guidance on governance, pooling, and investment frameworks, which came into effect on 30 June 2026. This guidance introduced strengthened requirements for leadership, competence, independent assurance, and the division of responsibilities between the Fund and its asset pool. The report also covered the implementation of the McCloud remedy, which addresses unlawful age discrimination in public service pension schemes.

Non-LGPS specific matters included an update on The Pensions Regulator's Corporate Strategy and Corporate Plan, signalling a more active, data-led supervisory approach. The status of Pensions Dashboards was also to be discussed, noting that schemes in scope must be connected by 31 October 2026, with ongoing duties related to data quality and matching.

Governance Strategy, Training Strategy, and Code of Conduct

The committee was scheduled to consider draft documents for a new governance framework, including a Governance Strategy, Training Strategy, and Code of Conduct. These documents are a response to LGPS governance reforms that took effect on 30 June 2026, introducing strengthened requirements for leadership, competence, independent challenge, and assurance. The Governance Strategy aims to clarify responsibilities and decision-making, the Training Strategy to establish knowledge and understanding expectations, and the Code of Conduct to set standards for integrity, objectivity, and stewardship. The report proposed a consultation process for these drafts before final approval.

Independent Person Selection Process

A report was presented seeking approval to commence a procurement and selection exercise for an Independent Person to support the Pension Fund Committee and the LGPS Senior Officer. This appointment is a legal requirement under the LGPS (Amendment) (Governance) Regulations 2026, intended to provide independent expertise and constructive challenge. The report outlined the proposed scope and principles for the role, which would cover investment strategy, governance, and administration, and recommended authorising the LGPS Senior Officer to manage the procurement process.

Pooling Update

The committee was to receive an update on Border to Coast Pensions Partnership's preparations for the strengthened LGPS pooling framework. The report explained the practical implications for investment implementation and oversight, highlighting that while pools will take on greater responsibility for implementing investment strategies, Partner Funds will continue to set investment objectives and oversee delivery. Border to Coast has made significant progress in integrating new Partner Funds and transitioning assets into pooled vehicles, with a focus on evolving its investment implementation model, governance, and customer strategy.

Reports from Investment Managers and Advisers

A significant portion of the meeting, detailed in Part B and therefore considered exempt from public attendance, was dedicated to reviewing reports from various investment managers and advisers. These included:

• Pension Fund Adviser: A report from Mercer.
• Independent Investment Adviser: A report from Apex Group.
• Annual Review of Private Markets.
• Border to Coast Pensions Partnership: An update presentation and a quarterly performance report.
• Alliance Bernstein: A report on their views on the economy, investment strategy, and investment holdings.
• CBRE Global Investment Partners: A report on their views on the economy, investment strategy, and investment holdings.
• Foresight: A report on their views on the economy, investment strategy, and investment holdings.
• LGIM: A report on their views on the economy, investment strategy, and investment holdings.

These reports would have provided detailed information on the performance and strategies of the various investment mandates managed on behalf of the Pension Fund.