The Pension Committee meeting scheduled for 4 December 2025 was set to cover a comprehensive update on the Gloucestershire Pension Fund's governance, operations, funding, and investments. Key discussions were expected to include the review of risk registers, audit findings, ongoing consultations on pension scheme reforms, and the annual data improvement plan. The committee was also scheduled to receive updates on investment performance and strategic asset allocation.

Gloucestershire Pension Fund Business Update - Funding & Investment

The committee was scheduled to receive an update on the Gloucestershire Pension Fund's funding position, market value, asset allocation, and investment performance as of 30 September 2025. Due to the ongoing 2025 triennial valuation process, a detailed quarterly funding update was not available, but assurances were given that no major events had materially affected the Fund since the September meeting.

The investment update indicated that the Fund's total market value had increased to £3,928.604m by 30 September 2025. Over the preceding 12 months, the Fund's assets had underperformed the strategic benchmark by 2.0%, with a return of 10.0%. Performance over the three years to 30 September 2025 was 10.30% annualised, which was slightly behind the strategic benchmark by 0.50%.

The market commentary for the quarter ending 30 September 2025 highlighted strong gains in global equity markets, influenced by easing tariff concerns, resilient economic data, and the US Federal Reserve's rate cut. However, bond markets were mixed, and cash and property markets delivered modest returns.

Investment activities during the quarter included calls into private market asset classes such as infrastructure, social and affordable housing, private equity, and private debt, totalling approximately £25.3m. The Strategic Asset Allocation (SAA) showed that Equities were 56.0% allocated, exceeding the target of 50.0%, while Fixed Interest was at 16.9% (target 20.0%) and Alternatives at 27.1% (target 30.0%). The report noted that overall strategic allocations were outside target due to the strong performance of equity markets, and rebalancing was being approached cautiously.

The Responsible Investment update mentioned the Fund's membership in The Local Authority Pension Fund Forum (LAPFF) and provided an analysis of equity holdings at the whole Fund level. It also highlighted the recognition of Faith Ward, Chief Responsible Investment Officer at Brunel Pension Partnership, with an MBE for her work on pensions and the environment.

An independent advisor's report was also scheduled to be presented, offering detailed analysis of the Fund's overall performance, underlying managers, investment mandates, and Long-term Capital Market Assumptions.

Gloucestershire Pension Fund Business Update - Governance & Operations

This report was scheduled to provide the committee with detailed information on matters relating to the governance of the Fund, including risk management activities and ongoing and future business operational issues. This was considered important for ensuring compliance with governance responsibilities under the Public Service Pensions Act 2013.

Key areas of discussion were expected to include:

• Draft Pension Board Minutes: The draft minutes from the Pension Board meeting on 23 October 2025 were to be noted.
• Audit Findings Report: Confirmation of an unqualified audit opinion for the Pension Fund for the 2024-25 financial year was to be noted, with no major changes identified from previous reports.
• Consultations: Updates were scheduled on two significant government consultations:
  • LGPS Scheme improvements (access and protections): This consultation covers areas such as the Normal Minimum Pension Age (NMPA), LGPS access for councillors and mayors, academies, and the New Fair Deal policy.
  • LGPS: Fit for Future - Technical Consultation: This consultation addresses draft regulations for pooling, management, and investment of funds, as well as governance reforms.
• Pension Schemes Bill update: An update on the progress of the Pension Schemes Bill, which aims to accelerate LGPS asset pooling, enhance governance, and stimulate UK investment.
• Risk Register: A review of the Fund's risk register was planned, highlighting any amendments and current risks above target. A new risk concerning the transition of assets to LGPS Central and potential exit costs from Brunel Pension Partnership was categorised as a red risk .
• Data Improvement: The committee was asked to approve the annual data improvement plan, following a review of progress made against the 2024 plan. The plan identified areas for improvement, including deferred member address data, CARE pay updates, aggregations, and frozen refunds.
• Key Performance Indicators (KPIs): An update on the Fund's performance against its KPIs was to be presented, noting that four out of six targets were above target for the quarter.
• Business Plan 2025/26: A report on the progress of key tasks within the 2025/26 business plan was scheduled, including updates on core projects such as Cyber Security Strategy implementation, Pensions Dashboard connection, Employer Portal (i-Connect) development, McCloud remedy implementation, The Pension Regulator's General Code of Practice compliance, and the Actuarial Services Contract procurement.

The meeting also included standard agenda items such as apologies, declarations of interest, public questions, and members' questions. The exclusion of the press and public was anticipated for certain agenda items due to the likely disclosure of exempt information.