The Brent Pension Fund Sub-Committee met on 8 October 2025 to discuss the fund's performance, review the annual report and accounts, and consider the triennial valuation update and funding strategy. The sub-committee also received updates on the Local Authority Pension Fund Forum (LAPFF) engagement and member training.

Investment Performance

The sub-committee reviewed the Investment Monitoring Report - Q2 2025, which showed a positive return for the quarter, with the fund's valuation increasing to £1,360.6m. The report noted that passive global equity mandates were the main contributors to positive returns, reversing their position as the largest detractor in the previous quarter. The fund outperformed its benchmark by 0.1% but remained behind its composite benchmark over the past year and three years. The sub-committee also noted the funding of the London CIV Private Debt II Fund across April and May 2025.

Annual Report and Accounts

The sub-committee reviewed the Brent Pension Annual Report & Accounts 2024/25, which presented the fund's financial performance for the year. The report highlighted an increase in the value of the fund's investments to £1,310m, driven mainly by passive global equity exposure and UK equities. Total contributions from employers and employees increased, as did total benefits paid to scheme beneficiaries. The pension fund remained in a positive cash-flow position. The Draft Brent Pension Fund Annual Report 2024-25 included in the agenda pack, outlined the fund's management, governance, financial performance, investments, scheme administration and actuarial position.

Triennial Valuation Update and Funding Strategy Statement

The sub-committee received an update on the 2025 triennial valuation and considered the 2025 Triennial Valuation Update and the Draft Funding Strategy Statement 2026. The initial results showed an improved funding position since the 2022 valuation, with the fund now in a surplus. The sub-committee noted the key changes to the Funding Strategy Statement (FSS) and that the draft FSS would be consulted with employers. The 2025 FSS updates_supporting drafting guide for the Brent 1 outlined the changes made to the Funding Strategy Statement in preparation for the 2025 valuation FSS consultation.

The triennial valuation is a formal valuation of the whole Fund, undertaken every three years. The purpose of the valuation is to compare actual experience against assumptions made at the last valuation; value the assets and liabilities of each individual employer and the pension fund as a whole using data from the Fund's administration system and financial records; set employer contribution rates, including for the council, for the next 3 years (1 April 2026 to 31 March 2029); review the Funding Strategy Statement (FSS); and also perform a health check on the Fund's solvency.

LAPFF Engagement

The sub-committee received the LAPFF Update, which detailed the engagement activity undertaken by the Local Authority Pension Fund Forum (LAPFF) on behalf of the fund. The LAPFF Engagement Report June Q2 2025 included in the agenda pack, highlighted key areas of activity in relation to water stewardship, housebuilders, governance, steelmaking and executive pay.

Training Update

The sub-committee received the Training Update, which provided an update on the provision of the LGPS online learning facility. The Brent Pension Fund Training Plan, Brent Pension Fund Training Strategy and Training Content and Learning Schedule were also noted.

The report reminded members of the new measures included within the Fit for the Future proposals designed to enhance governance, including a focus on the training of members involved in overall strategic direction of local authority pension funds. This included the requirement for Pension Committee members to have the appropriate level of knowledge and understanding for their roles, with the requirements for Pension Committee and Local Pension Board members to be aligned in order to ensure they possessed the necessary knowledge and skills to effectively fulfil their roles.

Pension Board Minutes

The sub-committee noted the Draft Pension Board Minutes - 22 July 2025.

Exclusion of Press and Public

The press and public were excluded from the meeting to discuss the 2025 Triennial Valuation - Whole Fund results and 2025 Triennial Valuation - Contribution Rate Modelling, as well as the Investment Strategy Review, due to the commercially sensitive nature of the information.