The Pension Fund Investment Sub-Committee of Warwickshire Council was scheduled to discuss a range of financial and governance matters. Key topics included an economic update, the pension fund's governance, investment reviews, and strategies for climate risk and net zero.

Economic Update

The meeting was scheduled to receive an update on market developments from January to May 2026. This included information on central bank policies and exchange rates, with a note that the Bank of England, US Federal Reserve, and ECB had adopted a wait-and-see approach following rate reductions. The report indicated that the US Dollar had depreciated in the first half of 2025 but had since stabilised. Inflationary pressures were noted, with UK CPI remaining above the Bank of England's target, exacerbated by the Middle East conflict. Global equity markets had recovered from the conflict's initial impact, with strong performance in US equities, particularly those related to AI. Sovereign and corporate bond markets had experienced volatility, with UK bonds being more affected than US bonds. Real yields in the UK remained elevated, impacting long-duration assets, while US credit spreads were near multi-year lows. The report also highlighted subdued conditions in UK commercial real estate, infrastructure returns driven by AI-related data centres and energy infrastructure, high deal volumes in private equity secondaries, and large investor redemption requests in private credit.

The outlook for June to December 2026 suggested a potential for a second cost-of-living crisis due to the Middle East conflict, which was expected to reduce global growth and keep interest rates higher. The UK economy was predicted to slow after solid growth in Q1 2026. The report anticipated muted market performance overall, with potential bright spots in AI-driven productivity gains, but also noted risks from high government debt and elevated equity prices.

Pension Fund Governance Report

A report was scheduled to be presented on the Pension Fund's Forward Plan and training initiatives. The forward plan, covering a four-year outlook, was to include longer-term strategic issues such as the Pensions Schemes Act 2026 and Local Government Reorganisation. The report also detailed a schedule of meetings for the Border to Coast Pensions Partnership and the Pension Fund Investment Sub-Committee, inviting members to attend the Border to Coast Annual Conference.

Training plans for 2026/27 were outlined, focusing on equipping committee members to hold the pool (Border to Coast) accountable, in line with the Pensions Schemes Act 2026. Proposed training sessions, to be run by Hymans, were to cover holding asset managers to account, reporting and management of investment risk, and understanding Border to Coast's whole fund and deep dive reports. Introductory training sessions from Border to Coast were also mentioned, covering asset classes, risk and return, sustainability, and the Border to Coast Partnership. The upcoming release of an updated LGPS Online Learning Academy (LOLA) was noted as a key risk mitigation measure. The report also indicated that the Communications Policy, Breaches Policy, Cyber Security Policy, and Business Continuity Plan had been reviewed.

Climate Risk Policy and Net Zero Strategy

The meeting was scheduled to consider the Climate Risk Policy and Net Zero Strategy. This report was intended to provide information on the fund's approach to these environmental considerations.

Quarterly Investment Management Review

A review of investment management activities was scheduled to be presented. This would likely cover the performance and management of the pension fund's investments over the previous quarter.

Border to Coast Response to Fixed Income Mandate Letter

The committee was to consider the response from Border to Coast to a fixed income mandate letter. This would involve reviewing communications and potential actions related to the fund's fixed income investments managed through the pooling arrangement.

Risk Register 2026

The meeting was to review the Pension Fund's Risk Register for 2026. This would involve identifying and assessing potential risks to the fund's operations and investments.

General Activity Update

A general update on the activities of the Pension Fund was scheduled to be provided.

Pooling Governance Update

Chris Norton, Head of Investments, Audit and Insurance, was scheduled to provide a verbal update on pooling governance.

Exempt or Confidential Information

The agenda indicated that members of the public would be excluded from the meeting for certain items to allow for the consideration of exempt or confidential information, as defined by the Local Government Act 1972. This included discussions on the Valuation 2025, Investment Strategy Statement, General Activity Update Q4 2025, Cashflow Management, Border to Coast - Strategy, Partnership, and Fit for the Future, LGPS Pooling - Implementation of Pooling Developments, Quarterly Investment Management Report, and Exempt Minutes of Previous Meetings.