The Pension Fund Board of Somerset Council convened on 21 June 2024 to discuss key issues including the risk register, business plan updates, and investment performance. Decisions were made to adopt the updated risk register and to approve the business plan update for the year.

Risk Register

The board reviewed the Risk Register for June 2024, which outlines potential risks to the pension fund and strategies for mitigating them. The updated register was adopted after a detailed discussion. Key risks identified included market volatility, regulatory changes, and cyber security threats. One board member highlighted the importance of addressing cyber security, stating:

Given the increasing frequency of cyber attacks, it is crucial that we bolster our defences to protect the fund's assets. ¹

Business Plan Update

The board also reviewed the Business Plan Update for June 2024. The update included a review of the fund's strategic objectives, performance targets, and planned activities for the upcoming year. The plan was approved unanimously. The board discussed the importance of aligning the business plan with the council's broader financial strategy. One member noted:

Our business plan must not only ensure the sustainability of the pension fund but also align with Somerset Council's overall financial health.

Investment Performance

The board examined the investment performance of the pension fund over the last quarter. The fund's performance was generally positive, with returns exceeding benchmarks in several asset classes. However, concerns were raised about underperformance in certain areas, particularly in emerging markets. The board agreed to monitor these investments closely and consider reallocating assets if necessary.

Public Participation

The meeting also included a segment for public participation, where local residents could voice their concerns and ask questions. Issues raised included the transparency of the fund's investments and the ethical considerations of certain asset allocations. The board assured the public that all investments are made with due diligence and in accordance with the council's ethical investment policy.

For more details, you can refer to the Public reports pack and the Agenda frontsheet for the meeting.