Issue - meetings

The item was introduced by Paul Higginbotham (Investment Analyst). He said the Pension Fund was doing well, as equities held in private markets and assets were currently performing well, particularly those based domestically, and there was little volatility in bond markets. The outlook for equities was predicted to remain positive.

Private equity infrastructure and private debt made up around a third of the Fund’s portfolio, which equated to around one billion pounds. Just over £600million of this had been allocated. The target cash balance of £50million, which was recommended by Hymans Robertson, was currently being met.

Members’ attention was drawn to the voting that had been taking place amongst the investment funds that the Warwickshire Pension Fund had investments in. Paul Higginbotham said the report contained links to websites that would show the interactions the Fund was having with the companies it was investing in.

Paul Higginbotham said it had been recommended by Hymans Robertson to move some equity assets into bonds, and this was producing some good real yields and returns. Other equities had been transferred into lower carbon funds to help meet a pledge that was made and approved by the Pension Fund Investment Sub Committee earlier in the year. Assets had also been moved into the All World equity portfolio from funds relating to individual countries.

The Fund had pledged to join the Border to Coast UK real estate fund, again following a vote at the Pension Fund Investment Sub Committee. The process of transferring from the current portfolio manager was taking place but would take a couple of years to complete. Investments would also be made into Border to Coast’s Climate Opportunities Fund, but the decision had been taken not to invest in the UK Opportunities Fund as it was felt there wasn’t enough conviction in the UK market at the present time. However this decision could be reviewed over time.

Members were told Hymans Robertson had been confirmed as continuing in their role as the Fund’s actuarial advisors.

Responding to a question from Councillor Ian Shenton, Paul Higginbotham said active participation in investment fund voting was encouraged but the Fund’s managers were responsible for taking an active role in this. Votes were not always passed in the way the Fund wished them to go however because of the number of votes that were cast. Councillor Shenton suggested it may be helpful for future reports to contain a brief summary of some of the subjects that were being discussed and voted on, particularly those that the Fund were in opposition to.

Members noted the contents of the report.