The Pension Fund Investment Sub-Committee of Warwickshire Council met to discuss a number of issues relating to the investments made by the Warwickshire Pension Fund. The agenda included a review of the minutes of the last meeting of the Warwickshire Local Pension Board, a review of the Fund's investments, and a report on the UK Government's review of the Local Government Pension Scheme (LGPS).

The most significant item on the agenda was the UK Government's review of the LGPS, which set out proposals for reforming the LGPS, including:

• Reforming LGPS asset pooling;
• Boosting investment in localities and regions in the UK; and
• Strengthening the governance of LGPS Funds and Pools.

The report pack for the meeting included a report that provided a summary of the Government's proposals and the key considerations for the Warwickshire Pension Fund. ¹

The report concluded that the Government's proposals represented a significant change to how the LGPS operates, and that it was important for the Warwickshire Pension Fund to respond to the consultation.

The sub-committee was asked to note the report and approve the holding of a special meeting in January 2025 to agree a formal response to the Government’s consultation.

Review of the Minutes of the Warwickshire Local Pension Board Meeting of 9 July 2024

The report pack also included the minutes of the Warwickshire Local Pension Board meeting of 9 July 2024. ²

The minutes of the meeting showed that the Local Pension Board had discussed a number of matters, including the Warwickshire Pension Fund Business Plan, the Pension Administration Activity and Performance Update, and an Investment Update.

The Sub-Committee was asked to note the minutes of the Local Pension Board meeting.

Quarterly Investment Management Review

The Sub-Committee was asked to note and comment on the quarterly report from Hymans Robertson, the Fund’s investment advisers. ³ The report provided an update on the performance of the Fund’s investments, as well as a summary of key market developments.

The report highlighted some areas of concern, such as the performance of the Border to Coast Global Equity Alpha Fund and the fact that the Fund remains overweight to equities. However, it was noted that the Fund is following the strategy review recommendation to increase the allocation to protection assets.

Pension Fund Governance Report

A report on the governance of the Warwickshire Pension Fund was presented to the Sub-Committee. The report covered a range of governance matters including risk monitoring, policy updates, and training undertaken by members of the Pension Fund’s committees.

In particular, the report highlighted the risk of climate change, which was identified on the Fund’s risk register, which is reviewed quarterly, as a key risk for the Fund. ⁴

Responsible Investment Policy

The final item for discussion was the Warwickshire Pension Fund’s Responsible Investment Policy. ⁵ The report pack included a report that set out a revised version of the Fund’s policy for managing Environmental, Social and Governance (ESG) factors in its investment process. The report explained that the Investment Sub-Committee had agreed to adopt the United Nations Principles for Responsible Investment (UNPRI) at its last meeting in September 2024 and that the proposed changes to the policy would bring the Fund’s approach to ESG investing into line with the UNPRI.

The report also explained that the revised policy proposed a number of specific changes to the Fund's approach to ESG investing, including:

• A commitment to integrate ESG factors into all stages of the investment process;
• A commitment to active ownership, including engaging with companies on ESG issues;
• A commitment to report on the Fund's ESG performance; and
• A commitment to review the Fund's ESG policy on a regular basis.

The Sub-Committee was asked to approve the revised Responsible Investment Policy.