Agenda and minutes

Pension Fund Investment Sub-Committee - Monday 10 June 2024 10.00 am

Venue: Committee Room 2, Shire Hall. View directions

Contact: John Cole  Senior Democratic Services Officer

Items
No. Item

1.

General

Minutes:

The Chair welcomed Chris Jones, Stephen Norrie, and Hazel Underwood of Warwickshire Climate Alliance (WCA) to the meeting. WCA had requested to observe the meeting which coincided with the start of ‘Great Big Green Week’.

 

The Chair welcomed Dapo Shonola to the meeting who had recently joined the Council as Lead Commissioner for Pensions and Investment.

 

The Chair reminded attendees that the meeting was being held during a period of heightened political sensitivity ahead of the General Election on 4 July 2024. Therefore, particular care was needed to ensure that comments or questions could not be perceived as seeking to influence public support for any candidate or political party.

1(1)

Apologies

Minutes:

Apologies for absence were received from Councillor Sarah Millar.

 

1(2)

Members’ Disclosures of Pecuniary and Non-Pecuniary Interests

Minutes:

There was none.

 

1(3)

Minutes of the Previous Meetings pdf icon PDF 90 KB

To confirm the minutes of the meetings held on 4 March, 14 March, and 14 May 2024.

Additional documents:

Minutes:

Resolved:

 

That the minutes of the meetings held on 4 March, 14 March, and 14 May 2024 be approved as an accurate record and signed by the Chair.

 

There were no matters arising.   

 

 

2.

Review of the Minutes of the Warwickshire Local Pension Board Meeting of 30 January 2024 pdf icon PDF 77 KB

Additional documents:

Minutes:

Resolved:

 

That the Pension Fund Investment Sub-Committee notes the minutes of the Local Pension Board meeting of 30 January 2024.

3.

Pension Fund Governance Report pdf icon PDF 88 KB

Additional documents:

Minutes:

Liz Firmstone (Head of Finance Transformation and Transactions) introduced this report which provided updated governance information including details of Warwickshire Pension Fund’s Forward Plan, risk monitoring, policies, and training. She highlighted that Climate Change and Cyber Security remained the highest areas of risk to the Pension Fund. Aon Hewitt had been commissioned to review and update the Fund’s Cyber Security Policy which would be presented to the Staff and Pensions Committee. She highlighted that at the meeting in March 2024, the Sub-Committee had asked if the risk ‘Long term asset values do not meet expectations’ could be reviewed. This review had been completed and the residual risk has been lowered to an amber rating. The risk rating for ‘Governance Failure’ had also been lowered to reflect the work being undertaken by the Fund to meet new governance requirements set out by the Pension Regulator and Scheme Advisory Board. She thanked members for completing the Knowledge and Skills Assessment.

 

In response to Councillor Hammersley, Liz Firmstone advised that Cyber Security had been set as a red risk as new threats were constantly emerging in this area. The Fund would remain vigilant.

 

There was discussion of the methodology for determining risk scores and whether it would be possible to enact measures to lower the risk rating for Cyber Security.

 

Councillor Gifford praised the quality of recent Cyber Security training provided to the Sub-Committee. It had shown the presence of risks not just from computer hacking but also by phishing emails. Criminals would seek to make use of these sorts of avenues to penetrate otherwise secure systems. There had been some recent high-profile reports of public sector systems being compromised. He emphasised the need for constant vigilance.

 

Liz Firmstone stated that the updated Cyber Security Policy placed an emphasis on ‘cyber hygiene’ and the individual responsibilities of those working for the Fund. The Policy advocated consistency in messaging to ensure that there was an ongoing awareness of risks. It also examined the risks associated with moving data between systems.

 

The Chair highlighted that Climate Change was the top scoring risk. It was an issue which the Sub-Committee took very seriously.

 

Councillor Gifford highlighted the complexity of the risk presented by Climate Change. The Pension Fund was working towards a transition away from fossil fuels. This presented opportunities but also significant risks. It was appropriate for Climate Change to remain as the highest rated risk on the Risk Register. 

 

Resolved:

 

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

 

4.

Reports Containing Exempt or Confidential Information

To consider passing the following resolution:

 

‘That members of the public be excluded from the meeting for the items mentioned below on the grounds that their presence would involve the disclosure of exempt information as defined in paragraph 3 of Schedule 12A of Part 1 of the Local Government Act 1972.’

Minutes:

Resolved:

 

That members of the public be excluded from the meeting for the items mentioned below on the grounds that their presence would involve the disclosure of exempt information as defined in paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972.

 

Chris Jones, Stephen Norrie, and Hazel Underwood of Warwickshire Climate Alliance left the meeting at this point.

 

5.

Border to Coast Pension Partnership 2030 Strategy

Minutes:

The Sub-Committee held a confidential discussion.

6.

Warwickshire Pension Fund Property Review

Minutes:

The Sub-Committee held a confidential discussion.

7.

Warwickshire Pension Fund Funding Update

Minutes:

The Sub-Committee held a confidential discussion.

8.

Quarterly Investment Monitoring Report

Minutes:

The Sub-Committee held a confidential discussion.

9.

General Activity Update

Minutes:

The Sub-Committee held a confidential discussion.

10.

Exempt Minutes of the Previous Meetings

To confirm the exempt minutes of the meetings held on 4 March and 14 March 2024.

Minutes:

Resolved:

 

That the exempt minutes of the meetings held on 4 March 2024 and 14 March 2024 be approved as an accurate record and signed by the Chair.

 

There were no matters arising.