Issue - meetings

Investment update

Meeting: 18/10/2022 - Warwickshire Local Pension Board (Item 5)

5 Investment update pdf icon PDF 129 KB


Chris Norton introduced the item by stating there were issues with market volatility at the moment. The funding level had increased over the quarter ending 30 June from 104 per cent to 122 per cent, due to volatility relating to inflation and interest rates. Despite this, operational cashflows were broadly neutral and there was little stress being put on investments. Longer-term investments continued to remain better than the benchmark.


Regarding stewardship, members were advised that the Pension Fund Investment Sub Committee had agreed to award two private mandates to two different fund managers. The investment structure would be looked at by the Committee at its December meeting. The cashflow amounts were noted, with uncertainty over whether the timing of when cash would be drawn by private market funds being highlighted as a risk. Climate change continued to be the a significant challenge affecting investments and the work of the Pension Fund.


Chris Norton said the Fund was looking to recruit a new investment analyst to the investment and governance team, as well as a senior accountant. Chris Norton said Sukhdev Singh would be leaving the Fund and thanked him for all of his hard work supporting the Fund.


Responding to a question from Jeff Carruthers, Chris Norton said the Fund was in a position to be able to manage short-term issues. If inflation was going to continue to remain a longer-term risk, then this would be more difficult to manage and plan for.


The Chair noted that Hymans were used as both actuary and investment advisor and said there had been some debate as to whether there should be a degree of separation between actuary and advisor, although he stated his belief it could be beneficial to have the same firm in both roles. He added it would be for the Fund to decide which course of action to take. Chris Norton said representatives of Hymans received the appropriate paperwork relating to the various pensions committees and would attend special interest meetings. Regarding the use of two different firms in relation to stewardship, the Chair said it was important they both voted in the same way as this would benefit the Pension Fund.


Members noted the contents of the report.