Issue - meetings

Chris Norton (Strategy and Commissioning Manager – Treasury, Pension, Audit & Risk) presented this report which provided an update on risks to the Fund and actions taken to manage them. He advised that significantly more time was now being dedicated to analysis of risk; however, it was not possible to foresee all eventualities. Measures were in place to improve preparedness for unexpected circumstances.

Andrew Felton (Assistant Director, Finance) stated that, although the initial effect of COVID-19 was severe, it had been resolved to take a long-term view. As an outcome, the Pension Fund was in a better position. He recommended that decision-making take account of the long-term nature of the Fund.

Councillor Gifford highlighted the risk posed by rising inflation. He stated that wage inflation could be significantly detrimental to the Fund.

Councillor Kettle stated that a long-term view was required. He highlighted the impact of the war in Ukraine and the likely economic and geo-political outcomes which could take up to 30 years to manifest.

The Chair stated that, despite the challenges of risk forecasting, it was possible to demonstrate a broad awareness of potential risks. For example, there has been widespread speculation of the risk posed by future global pandemics.

There was discussion of macro risk and possible outcomes of the war in Ukraine.

Resolved:

That the Pension Fund Investment Sub-Committee notes the report.