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The minutes are published. No summary has been written yet.
Councillor Tew provided his apologies via email.
Members confirmed the following declarations of personal interest: Councillor In Receipt of Pension Contributor Jon Horlor NONE Self Stuart Keyte NONE NONE David Williams Self and wife Self and wife Nathan Yeowell Father and two other family members (aunts) Self The PS left the meeting.
3.1 The minutes of the meeting held on 06/10/25 were confirmed as an accurate record.
4.1 The minutes of the special meeting held on 17/11/25 were confirmed as an accurate record.
5.1 The Committee noted the minutes.
6.1 The Pension Manager outlined the report and provided an update on the current administration duties carried out by the Pensions Team. 6.2 The Pension Manager highlighted the following business activities: · The Payroll Team Leader, Sophie Townsend, had resigned and was due to leave in January after more than twenty years of service. Joanne Dean had been appointed as the new Team Leader, and recruitment for a Senior Payroll Officer was scheduled for the New Year. · The My Pensions Online platform, launched on 6 August 2025, had been well received. Over 10,000 benefit statements had been viewed, with average session times of ten minutes and access from forty-four countries. A newsletter had been issued to pensioners to encourage further registrations. · The Council had appointed a new Chief Information Security Officer, and discussions were underway to strengthen the Fund’s cyber resilience. · The Fund had successfully connected to the Pensions Dashboard by the 31 October deadline. Standard Life AVC data had been integrated; Clerical Medical was expected to complete by the end of November; and work continued with Heywood to upload Utmost data. · Two consultations had been launched by the Ministry of Housing, Communities and Local Government: ‘Access and Fairness’, covering survivor benefits, gender pay gap, and McCloud remedy changes; and ‘Access and Protection’, addressing normal pension age, Councillor eligibility, and fair deal protections. Responses were being coordinated on an all-Wales basis. 6.3 Following questions from the Committee, the Pension Manager made the following points: • The deadline for Utmost AVC data was October 2026, and the regulator had adopted a pragmatic approach to delays. • Notifications of failed dashboard matches were to be routed directly to the Fund for resolution. • Matching criteria were designed to avoid sole reliance on National Insurance numbers and would incorporate other identifiers. • Uptake of My Pensions Online had exceeded previous migrations, and further engagement initiatives were planned. 6.4 The Pensions Committee noted the report.
7.1 The Investment Officer outlined the report and gave an update on the quarter performance ending 30th September 2025. 7.2 It was reported that the Fund had delivered a return of 6.97% for the quarter ended 30 September 2025, outperforming its benchmark by 0.2%. The Fund’s value had risen by £317 million to £4.9 billion and exceeded £5 billion by the end of October. Long-term returns remained strong, with three-year annualised returns at 12.3%, five-year at 9.3%, and ten-year at 9.1%, all above the actuarial rate of 6%. 7.3 Asset allocation continued to show an overweight position in equities and listed fixed income, with underweights in real estate, infrastructure, private credit, and multi-asset classes. Approximately 75.5% of assets were pooled with the Wales Pension Partnership, with full pooling expected by March 2026. Private market commitments totalled £1.1 billion, of which £570 million had been deployed. Equities returned 9.1% in Q3, fixed income 1.7%, multi-asset 4.4%, and real estate 0.9%. Officers confirmed that governance corrections had been made following minor attribution errors. 7.4 The Independent Investment Analyst provided an overview of global economic conditions, noting market resilience despite inflationary pressures and geopolitical uncertainty. Interest rate cuts by major central banks and the surge in gold prices were highlighted, alongside concerns about concentrated equity exposures. The importance of diversification and vigilance was stressed. · Global markets had shown resilience despite inflation and geopolitical challenges. · US equity markets had been driven by technology and AI, raising concerns about concentration risk. · Central banks had reduced interest rates, affecting bonds and credit spreads. · Gold had risen as a perceived safe haven, though its role in institutional portfolios remained limited. · Diversification and careful monitoring were emphasised as essential for long-term stability. 7.5 Following questions from the Committee, the Investment Officer, the Head of Pensions and the Research Analyst made the following points: · Stragtegic allocation would remain the responsibility of the Committee. · Foreign exchange risk management could be considered by the WPP Investment Management Company after April 2026. · Diversification into private markets continued, supported by strong governance and due diligence. · The equity overweight reflected historic growth, with rebalancing underway. · Private market performance was monitored closely, with phased deployment ensuring quality investments. 7.5 Members welcomed the Fund surpassing £5 billion and commended the approach to diversification and governance. 7.7 Pension Committee noted the investment performance that had taken place during quarter three of 2025.
8.1 The Head of Pensions outlined the report and provided an update on the current activities of the Welsh Pension Partnership. 8.2 It was reported to the Committee that that 75.5% of the Fund’s assets (£3.84 billion) were pooled as of 31 October 2025. Progress continued on establishing the WPP Investment Management Company, with FCA application submitted, senior appointments underway, and governance documents scheduled for approval at a special meeting on 9 February 2026. The transition to the ESG Insights Equity Fund was also completed with minimal cost. 8.3 Following questions from the Committee, the Head of Pensions made the following points: · The special meeting on 9 February 2026 would consider and approve the Shareholder Agreement, Client Service Agreement, and variations to the Inter-Authority Agreement. · The move to the new company was expected to strengthen governance and clarify accountability for implementation while preserving the Committee’s authority over strategic asset allocation. · The transition of the BlackRock mandate incurred costs in line with expectations, with most assets transferred in-specie and oversight provided by Hymans Robertson. A post transition report was due to be discussed with Fund officers in due course. 8.4 Pension Committee noted the contents of the report.
9.1 The Head of Pensions outlined the report and provided an update the Government technical consultation on pooling and governance. 9.2 The consultation comprised 29 questions and two draft statutory instruments, with a submission deadline of 2 January 2026. Key proposals included mandatory implementation of investment strategy by pool companies, requirement for pool companies to provide principal investment advice, and enhanced governance measures such as a senior LGPS officer role, independent committee representation, and a triannual governance review. 9.3 The Head of Pensions highlighted a significant point of clarification: the government’s expectation that pool companies operate the investment vehicles currently managed by third-party providers, which could require additional FCA permissions and impact timelines. Engagement with government officials was scheduled to seek clarity on this issue. A draft response would be circulated to Members for comment before Christmas. 9.4 Following questions from the Committee, the Head of Pensions made the following points: • The draft response would be circulated to Members within the week, with comments requested by Christmas Eve to meet the 2 January deadline. • Engagement with government officials was planned to clarify expectations regarding operator functions and FCA authorisation requirements. • The proposed independent person on the Committee would not be a voting member but would provide advice and challenge. 9.5 Pension Committee noted the contents of this report.
10.1 The Finance and Investment Manager outlined the report and provided an update on the WPP Exclusions Policy Update. 10.2 A dedicated working group, including Fund representation, had agreed core principles and high-level criteria in principle. Work was underway to align the exclusions policy with the existing Responsible Investment Policy and ensure consistency across all WPP documentation. Engagement with managers and service providers would follow to confirm operational readiness. 10.3 Final approval of the policy was expected at the Joint Governance Committee meeting in March 2026, enabling implementation by the new WPP Investment Management Company from inception. 10.4 The Pension Committee noted the contents of this report.
11.1 The Investment Officer presented the first iteration of the revised risk register following a comprehensive review of the Fund’s risk management framework prior to handing over to the Pensions Manager to talk through the compliance and regulatory risks. 11.2 Enhancements to the Risk Register included a refreshed scoring methodology and evaluation criteria, re-categorisation of risks into five areas, and introduction of a Top Ten Risk Snapshot and thematic review cycle for deeper oversight. 11.3 A new risk relating to the timely delivery of Project Snowden had been added, while duplicative cyber risks were removed and the cash-flow risk score moderated to reflect sustained liquidity sufficiency. The thematic review for this meeting focused on compliance and regulatory risks, including GDPR compliance, LGPS regulatory obligations, McCloud remedy implementation, and Pensions Dashboard connectivity. 11.4 Following questions from the Committee, the Investment Officer made the following points: • The Local Pension Board had reviewed and commented on the revised approach and would continue to provide oversight. 11.5 Pension Committee noted the contents of this report.
12.1 The Finance and Investment Manager updated the Committee on the Risk Appetite Statement which formalised the Fund’s tolerance levels across key risk categories. 12.2 It was confirmed there was a low appetite for governance and compliance risks and a moderate appetite for investment risks where supported by robust due diligence and aligned with fiduciary responsibilities. The Statement was refined to acknowledge circumstances where broader community benefits might justify a calibrated increase in risk tolerance, subject to prudential safeguards. 12.3 Following questions from the Committee, Officers confirmed the following points: • Future reports would indicate whether current exposure sat within the approved appetite and tolerance range. • The Statement would inform, but not replace, case-by-case judgement by the Committee and Officers. 12.4 Pensions Committee: I. Noted the contents of the report and the respective appendix; and II. Subject to final comments being completed, approved the Risk Appetite Statement
13.1 The Pension Manager updated the Committee with the annual training programme. 13.2 Members were encouraged to utilise the LGPS Online Learning Academy (LOLA) to meet emerging governance requirements under the Fit for Future reforms. It was confirmed that LOLA modules could be completed at Members’ convenience and would support evidencing of knowledge and understanding. 13.3 Additional briefings would be arranged as necessary to address new regulatory requirements. 13.4 Pension Committee: I. noted the annual training programme included in appendix 2 and II. considered whether any specific training areas or topics should be included.
14.1 The next meeting is scheduled to take place on 9th February 2026. 14.2 The meeting ended at 12:27
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