Issue - meetings

Martin Griffiths (Technical Specialist – Pension Fund Policy and Governance)

introduced the report which provided updated governance information relating to Warwickshire Pension Fund’s forward plan, risk monitoring, training, and policy. The report also included details of the revised Investment Strategy Statement (ISS) which had been reviewed and updated by Hymans Robertson. The Sub-Committee was asked to consider and approve the revised ISS.

Martin Griffiths highlighted the commentary in the report relating to the Training Plan. He asked members to contact him if they had any specific training requirements that should be added to the Plan. He highlighted the ‘Fundamentals’ online training course and requested that members confirm if they had completed this training.

In response to the Chair, Martin Griffith advised that the Risk Register (appendix 5 of the report) included some formatting errors meaning that risk scores had been omitted in two categories. A revised version would be provided following the meeting.

In response to Councillor Millar, Martin Griffiths stated that Artificial Intelligence (AI) constituted an emerging risk. The Council’s Information Governance Team provided quarterly advice to the Pension Fund which included an assessment of risks associated with AI. There was an awareness of developing concerns in this area.

In response to the Chair, Victoria Moffett (Lead Commissioner – Pensions and Investment) advised that the steps taken to mitigate risk under the category of ‘long term asset values do not meet expectations’ had been judged to be sufficiently robust to warrant an impact rating of four (rather than five). The measures in place meant that it would be possible to anticipate problems prior to there being any serious impact on the Fund.

In respect of the risk category ‘short term asset values do not meet expectations’, Victoria Moffett advised that a risk likelihood rating of five had been set due to ongoing geopolitical risks and economic uncertainty. For the category of ‘liabilities cannot be met’, an impact rating of four had been determined as it was considered that robust measures to mitigate risk were in place.

The Chair expressed confidence in the risk ratings and the explanations provided by officers. He sought the Sub-Committee’s views on the updated ISS.

In response to Councillor Hammersley, Victoria Moffett advised that a triennial cycle was in place to review the Investment Strategy. However, annual reviews were also undertaken as part of this process.

Councillor Hammersley highlighted that statement within the ISS that the “Committee is aware that the Fund has a need to take investment risk to help it achieve its funding objectives”. As the Fund had performed well in recent times, he queried whether there was a need to take on additional risk.

Victoria Moffett advised that the Fund continued to accept new members which created a requirement to continue to accrue benefits to ensure that the Fund would be able to meet future obligations.

In response to the Chair, members unanimously agreed to approve the recommendations of the report.

Resolved:

That the Pension Fund Investment Sub-Committee:

     1.          Notes the items  ...  view the full minutes text for item 5