The Cumbria Pensions Committee of Westmorland and Furness Council met to discuss various matters including updates from the Cumbria Local Pension Board, the adoption of an updated Responsible Investment Policy, and investment opportunities with Border to Coast Pensions Partnership. Key decisions included the approval of the updated Responsible Investment Policy and new investment commitments.

Responsible Investment Policy

The committee approved an updated Responsible Investment Policy for the Cumbria Pension Fund. The policy, which will inform investment decisions and revisions to the Investment Strategy Statement, was developed after extensive engagement with scheme members and stakeholders. Over 3,300 responses were received in a survey, reflecting a broad recognition of the importance of maintaining a well-run pension fund while also investing responsibly. The policy states that while investment decisions solely on non-financial grounds do not meet the Fund’s primary fiduciary duty, incorporating Environmental, Social, and Governance (ESG) factors can improve long-term risk-adjusted returns. Members discussed the need to consider issues such as climate change, diversity on boards, and modern slavery in future policies.

Investment Opportunities with Border to Coast Pensions Partnership

The committee received a presentation from Border to Coast Pensions Partnership (BCPP) on various investment opportunities, including private markets and climate opportunities. The committee agreed to make investment commitments to BCPP's private debt, infrastructure, climate, and UK opportunities funds, with a minimum investment of £30 million to any commitment and a 2:1 ratio for investment in the climate fund to the UK fund. The final decision on the exact value of commitments was delegated to the Director of Resources (Section 151 Officer), considering the Fund’s cashflow analysis and liquidity requirements.

Update from Cumbria Local Pension Board

The committee reviewed a report summarising the recent quarterly meeting of the Cumbria Local Pension Board. The board had discussed cyber security with the LPPA IT Manager, highlighting the serious consequences of potential cyber-attacks. The committee noted the update and the board's role as a 'critical friend' to LPPA.

Review of Pensions Administration Activity

The committee reviewed the pensions administration activity for the quarter ending 31 December 2023. Members expressed dissatisfaction with the performance of Local Pensions Partnership Administration (LPPA) and requested national benchmarking data to assess LPPA's performance in the market. The committee approved revisions to the Admissions and Termination Policy, recognising pass-through arrangements as an alternative form of admission for admitted bodies from 1 April 2024.

Investment Activity for the Quarter Ended 31 December 2023

The committee received a report on investment activity for the quarter ending 31 December 2023. The report recommended formal consideration of new investment commitments and provided an update on investment activity. The committee noted the final decision to invest the Fund’s directly-held property portfolio (English properties only) in the BCPP UK Commercial Property Main fund proposition.

Review of Oversight & Governance Matters

The committee reviewed a report on oversight and governance matters, including updates to the Fund’s risk register and the Fund’s Stewardship Report 2022/23, which continues to meet the requirements of the Financial Reporting Council’s UK Stewardship Code 2020. The committee also approved the 2024/25 Learning Programme.

Draft Pensions Fund Business Plan & Administration Budget 2024/25

The committee approved the draft 2024/25 Business Plan and the draft 2024/25 budget required to administer the Cumbria LGPS, amounting to £21.318 million. The plan outlines the proposed work plan for the year.

For more details, you can refer to the minutes of the meeting.