Minutes:
1. Mrs Surana and Mr Steensel introduced the report, which provided an update on investment performance, pooling activity, cashflow management and the ongoing review of the Fund’s investment strategy.
2. During the introduction the following points were covered:
a. The Fund value had increased to approximately £9.6 billion at 31 March 2026, and the annual performance of 11.5% had exceeded the benchmark return.
b. Strong performance had been achieved across several investment asset classes, despite continuing market volatility.
c. No rebalancing was recommended at the present time due to the ongoing strategy review and transition to the BCPP.
d. During the update on pooling activity, the following matters were highlighted:
1. The key legal and governance documents relating to the transition to BCPP were nearing completion.
2. The imminent finalisation of the Investment Management Agreement would allow BCPP to assume oversight responsibility for the Fund’s assets.
3. The transition of assets would take place over an extended period and would be conducted in a manner that minimised transition costs to ensure best value for money.
4. Close engagement with BCPP officers would continue throughout the process.
3. Mr English (Mercer) presented an update on the Strategic Asset Allocation Review, undertaken following the 2025 Actuarial Valuation. During the update the following points were raised:
a. The Investment Sub-Group had met twice and was next due to meet in July.
b. There was a balance to be struck between the potential investment return, investment risk, and the need to maintain affordable and stable employer contribution rates.
c. Compared to other local government pension funds, Kent was unusual not to have any investment in private credit. The Committee would be offered some training about private credit.
d. The Committee would consider the Fund’s investment objectives at the September meeting.
4. During consideration of the item, the following points were discussed:
a. The voting activity of asset managers was available to view on the Kent Pension Fund website.
b. Work was underway with BCPP to develop a transition plan that minimised the transition risk and costs. The transition would largely take place over the next 18 months.
c. The Investment Strategy Statement (ISS) would be presented to the Committee for agreement in September. This would be followed by a period of consultation. Then the final ISS, that included comments arising from the consultation, would be considered by the Committee in December.
d. The specific areas of infrastructure investment for the Fund would be at the discretion of the BCPP investment managers.
e. The removal of equity protection was proposed and agreed alongside a reduction in equity exposure and risk.
5. RESOLVED to:
a. NOTE the work undertaken on the review of the Fund’s Strategic Asset Allocation, and APPROVE the approach taken, which supports the final strategy being presented for approval at the September meeting.
b. APPROVE the recommendation to make initial commitments to the Border to Coast Private Equity and Infrastructure 2026 ‘Series 3b’ propositions of £200m each, as set out in section 12.6 and further explained in Appendix 3 and delegate implementation of the decision to the Head of Pensions and Treasury.
Motion to Exclude the Press and Public
RESOLVED that the Press and Public be excluded from the meeting for the following business on the grounds that it involves the likely disclosure of exempt information as defined in Paragraph 3 of Part 1 of Schedule 12A of the Act.
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