Brent Council is poised to set a local investment target for its pension fund, signaling a strategic shift towards boosting the borough's economy. The move comes after a Brent Pension Fund Sub-Committee meeting where members discussed the government's response to the 'Fit for the Future' consultation, which encourages Local Government Pension Schemes (LGPS) to increase investment within their regions.
The council aims to align its pension fund investments with local growth plans, prioritizing opportunities that offer the greatest impact. While a specific target hasn't been prescribed, the council will collaborate with local authorities and regional stakeholders to identify viable investment options. This initiative reflects a broader trend within the LGPS to leverage pension funds for local economic development.
During the meeting, the sub-committee also reviewed the fund's Q1 2025-26 Investment Monitoring Report, which revealed a slight dip in valuation to £1,310.1 million, down from £1,335.8 million at the end of Q4 2024. Negative returns from passive global equity mandates and UK government bonds contributed to this decline, although UK equities showed positive performance. The fund underperformed its benchmark by 0.1% during the quarter and remains behind its composite benchmark over the past year and three years.
Other key discussion points included updates from the Local Authority Pension Fund Forum (LAPFF) on corporate governance engagement and a training update following the government's 'Fit for the Future' consultation, which emphasized enhanced governance measures and member training. The sub-committee also agreed on key assumptions for the upcoming 2025 Triennial Valuation, which will significantly influence the calculation of liabilities and funding levels. The press and public were excluded from discussions on the investment monitoring report and triennial valuation due to the confidential nature of the financial information.