The Pensions Committee of Cornwall Council met on Thursday, 18 September 2025, to discuss updates on the Cornwall Pension Fund's investments and the performance of the Brunel Pension Partnership. The meeting agenda included a review of investment performance, responsible investment activities, and the implications of government decisions on pension scheme pooling.

Cornwall Pension Fund Business Update - Part 1 - Investments

The committee was scheduled to receive an update on the Cornwall Pension Fund's investment performance for the quarter ending 30 June 2025. This included a review of the Fund's market value, which had increased to £2,585 million, and its asset allocation. The report indicated that the total Fund assets produced a positive return of 2.3% for the quarter, underperforming the total Fund benchmark by 0.8%. Specific asset classes such as equities, fixed income, property, and alternatives were detailed, with performance figures and comparisons to their respective benchmarks.

The report also highlighted investment and disinvestment activities, including a complete divestment from Sterling Corporate Bonds and reinvestment into the Risk Management Framework (RMF) and the Tactical Asset Allocation Portfolio (TAAP). Capital drawdowns for various Brunel funds, including Infrastructure, Private Equity, Private Debt, and Local Impact funds, were also noted. The committee was to be informed that no individual investments exceeded 20% of the total Fund value.

Furthermore, the update was to cover the Fund's funding position, showing the required investment return to be 100% funded and the likelihood of achieving it. For the quarter ending 30 June 2025, the likelihood of achieving the required return was reported as 89%. The report also provided market background for June 2025, detailing returns for various asset classes and currencies, and discussing global economic conditions, including the impact of US trade tariffs, interest rate decisions by the Bank of England and the European Central Bank, and performance in the Eurozone and Emerging Markets.

The report also included details on the Fund's Responsible Investment activities, including voting records and engagement statistics. The Cornwall Pension Fund's commitment to managing Environmental, Social, and Corporate Governance (ESG) issues was reiterated, with a focus on climate change. The Responsible Investment Work Plan for 2025 was outlined, detailing activities such as developing a Nature and Biodiversity work plan, preparing the fifth TCFD report, engaging with the IIGCC Net-Zero Framework, and conducting scheme member engagement.

Brunel Pension Partnership Update

The committee was scheduled to receive an update on the activities of the Brunel Pension Partnership. This included information on the appointment of Patrick Newberry as the new Chair of Brunel, following Sally Bridgeland's decision to step down. Mr. Newberry brings 35 years of experience in financial services and extensive board and executive experience.

The update was also to highlight Brunel's recognition at the Investment & Pensions Europe (IPE) Transition Awards 2025, where it received two awards for Stewardship Campaign & Strategy and Transparency & Communications on Transition Strategies. These awards are considered significant in the field of Responsible Investment, particularly concerning climate action.

Further details were to be provided on a Reserved Matter Notice concerning amendments to Brunel's Remuneration Policy, which included provisions for retention awards to support business stability and regulatory compliance. Additionally, an update on Brunel's Front Office Technology Project was scheduled, announcing the onboarding of Asset Metrix as the new Private Markets Administrator, which will provide enhanced data quality and a central source of information for private markets.

A significant point of discussion was expected to be the implications of the Ministry of Housing, Communities & Local Government's (MHCLG) decision that Brunel would have to disband and its member Funds would need to move to another Pool. The report highlighted the significant costs associated with this transition, estimated at around £10 million for the Cornwall Fund, and noted that the Government had declined to contribute to these costs. The committee was to be informed that Cornwall Pension Fund had written to its local Members of Parliament to lobby the Government for funding in line with the New Burdens Doctrine.

Cornwall Pension Fund Business Update - Part 2 - Investments and Local Government Pension Scheme Pooling - Part 2

The agenda also indicated that further updates on Cornwall Pension Fund investments and Local Government Pension Scheme (LGPS) pooling would be discussed in Part 2 of the meeting. These items were designated as exempt from public disclosure, suggesting they would involve sensitive financial or business information.