The Brent Pension Fund experienced negative returns in the first quarter of the 2025-26 financial year, according to an Investment Monitoring Report presented to the Brent Pension Fund Sub-Committee on Tuesday, 24 June 2025. The fund's valuation decreased from £1,335.8 million at the end of Q4 2024 to £1,310.1 million.
The report cited passive global equity mandates and UK government bonds as the primary contributors to the negative returns. Rising gilt yields led to a fall in the value of the UK government bonds. UK equities, however, delivered positive returns during the period.
On a relative basis, the fund underperformed its benchmark by 0.1%. It is also behind its composite benchmark over the past 12 months and three years. Cash holdings decreased slightly to £63.6 million.
The sub-committee also received updates on several other key areas, including the outcome of the government's Fit for the Future consultation, which focuses on asset pooling, local investment, and governance. The government confirmed it would move ahead with core proposals, requiring funds to delegate investment strategy implementation to their pool and take principal investment advice from the pool. A target allocation for local investment will also be required.
Updates were also provided on engagement activity undertaken by the Local Authority Pension Fund Forum (LAPFF) on behalf of the fund, focusing on water stewardship, banking and financing of fossil fuels, governance, and nature. The sub-committee also received a training update and an update on the 2025 Triennial Valuation, including key assumptions.
The press and public were excluded from discussions on the Investment Monitoring Report and the Triennial Valuation due to the confidential nature of the financial information.