Issue - meetings

Warwickshire Pension Fund Accounts 2023/24

Meeting: 28/11/2024 - Audit and Standards Committee (Item 5)

5 Warwickshire Pension Fund Statement of Accounts 2023/24 pdf icon PDF 84 KB

Additional documents:

Minutes:

Chris Norton (Head of Investments, Treasury and Audit) introduced the report, stating that the draft accounts for the Pension Fund had been published for public consultation and audited by Grant Thornton. The accounts presented to the Committee had been updated with issues arising from the consultation and audit. The Committee was asked to consider the Statement of Accounts for 2023/24 and to recommend them to full Council for approval on 17 December 2024. He highlighted the amendments made to the public draft accounts outlined within the report. These did not influence the net asset statement and were not material. He praised the Pension Team and colleagues across the organisation for their work to produce the accounts and progress the audit.

 

Councillor Gifford highlighted that, as at 31 March 2024, the Pension Fund had net assets of £2.969bn. This was a funding level of approximately 140%, constituting a strong position. He highlighted the analysis of costs of managing the Warwickshire Pension Fund outlined within the report. Investment management expenses for areas such as private equity, infrastructure, and private debt were noticeably higher than the costs for less specialist areas and pooled investments. This was pertinent to the Government’s plans to potentially expand pooling arrangements for local government pension funds which could lead to reduced management costs. 

 

Chris Norton advised that investment management costs depended upon the level of complexity of tracking performance in particular areas. For example, listed equities were relatively straightforward to manage but private markets and actively managed assets required closer attention by fund managers, incurring a higher cost. Pooling achieved economies of scale; however, there had been increased investment in private markets which had a counter-effect on management costs. There was a broad push and pull between these two factors which determined the overall cost of investment management.

 

In response to the Chair, Chris Norton outlined the role of the Pension Fund Investment Sub-Committee to determine investment decision making. Investment management costs were considered alongside other factors. The objective was to achieve a net risk adjusted return comprising a basket of different assets to provide the right risk profile.

 

In response to Chair, members of the Committee agreed that the recommendation of the report be accepted.

 

Resolved:

 

That the Audit and Standards Committee recommends the 2023/24 Pension Fund Statement of Accounts to Council for approval.