The Acting Assistant Director – Resources presented the Quarter 2 Corporate Performance Report for 2025-26. Members were informed that the clearance of the backlog is progressing, however the deadline has been extended to March 2026. Additionally positive progress is being made on the transition of legacy assets to Border to Coast with an extended target date of June 2026.

The Independent Investment Adviser, Jonathan Hunt raised that with significant pooling changes coming down the track, it is important to monitor the progress of integrating the new partner funds whilst managing the risk to ensure that this does not distract Border to Coast from their ‘day job’ of managing the Fund’s assets.

The Director responded that this is a dimension of two risks in the risk register; the Pensions Review and Border to Coast’s Strategic Plan, noting that so far, the day-to-day business alongside integrating the new partner funds is working in parallel providing us with a reasonable degree of confidence, however this will continue to be monitored.

The Director Designate added that at the next risk register review, following further developments on the Pension Schemes Bill and once all legal documentation for incoming partner funds has been completed, we will consider revising and updating these two risks to reflect the evolving situation and ensure that the associated mitigating actions are sufficient and appropriate in recognition of this issue.

Members queried the discrepancy on the Funding Level within the Corporate Performance Report compared to the Valuation report presented at this meeting.

The Director advised that the funding level monitoring tool used to gather this data has not been updated at a member level for the 2025 Valuation and instead reflects a roll-forward estimate based on the 2022 Valuation data. This is due to be updated to the 2025 Valuation basis in January.

RESOLVED: Members noted the report.