Minutes published from the June 2026 meeting of Kent County Council’s Pension Fund Committee show members approved two £200m commitments to Border to Coast investment vehicles and considered options for the fund’s future governance under local government reorganisation.

Kent County Council’s Pension Fund Committee approved £400 million in new investment commitments at its meeting on 23 June 2026, as the fund’s total value reached approximately £9.6 billion and annual performance of 11.5% exceeded its benchmark return.

Investment commitments approved

The committee resolved to make initial commitments of £200 million each to the Border to Coast Pension Partnership (BCPP) Private Equity and Infrastructure 2026 ‘Series 3b’ propositions. Implementation of the decision was delegated to the Head of Pensions and Treasury.

Officers reported that the transition of the fund’s assets to BCPP would take place over an extended period — largely within the next 18 months — and would be conducted in a manner intended to minimise transition costs. The Investment Management Agreement with BCPP was described as nearing finalisation, which would allow BCPP to assume oversight responsibility for the fund’s assets.

Mercer, the fund’s investment adviser, noted that Kent was unusual among local government pension funds in having no investment in private credit, and indicated that the committee would be offered training on the subject. The committee also agreed to remove equity protection alongside a reduction in equity exposure and risk.

Local government reorganisation options

The committee considered a report from advisers Barnett Waddingham on the implications of local government reorganisation (LGR) for the fund’s future administration. Of five options analysed, two were identified for further detailed assessment: designating one of the new unitary authorities as the administering authority, or creating a new Kent Single Purpose Pension Authority to take on that role.

Officers emphasised that the fund’s functions must remain unaffected when new arrangements take effect and that the changes must not impact fund members or employers. The committee noted that the Secretary of State would ultimately decide how the fund is administered following LGR, but that the council should assess the options and put forward a preferred approach.

Governance and budget

The fund was forecasting a budget overspend, attributed primarily to higher-than-forecast investment management and transaction costs arising from strong investment performance, and costs relating to property purchases including stamp duty.

New legislation requires the appointment of an Independent Person to the Pension Fund Committee by 31 December 2026. The committee delegated responsibility for leading the selection process to the Head of Pensions and Treasury, in consultation with the committee chair. Members noted it could be advantageous to appoint someone who already served as an independent person on another pension fund committee.

An internal audit of debt recovery management received a substantial assurance opinion, with no high or medium risk findings identified.

Sources

Top image: illustrative, computer-generated. Illustrative AI-generated image of a council chamber interior. This is not a photograph of the actual venue where the Kent Pension Fund Committee met.