Here's a summary of the Torfaen Council Pensions Committee meeting:

The Torfaen Council Pensions Committee convened to discuss key aspects of the Greater Gwent (Torfaen) Pension Fund, including investment performance, risk management, and the upcoming triennial valuation, and also considered a Wales-wide exclusion framework. The committee noted the investment performance, endorsed an updated risk management approach, and received updates on the Wales Pension Partnership and elected member training.

• Towards A Wales-Wide Exclusion Framework and Consideration of Gwent Local Authority Motions
• Draft Annual Report and Accounts 24-25
• Quarterly Investment Performance Report to 30/06/25
• Wales Pension Partnership Update
• Risk Register Update
• Updated Risk Management Approach
• Elected Member Training
• 2025 Triennial Valuation Update

Wales-Wide Exclusion Framework and Gwent Local Authority Motions

The committee discussed a report from Councillor Nathan Yeowell, Chair of Greater Gwent (Torfaen) Pension Committee, regarding the development of an exclusionary framework within the Wales Pension Partnership¹ (WPP). The committee noted the Joint Governance Committee's statement on the humanitarian crisis in Gaza, and also considered motions from Monmouthshire County Council and Newport City Council requesting a review of investments linked to the conflict. The Monmouthshire motion requested the fund:

• Review its investments and those of the Greater Gwent Pension Fund for holdings in companies supplying arms or military support that enable breaches of international law in Gaza.
• Work with asset managers to end such investments.
• Report back to the council within three months.

The Newport City Council motion requested the Greater Gwent Pension Fund to:

• Review its investments to determine any relation to the conflict in Gaza, and whether any investments have been made in companies that might be complicit in potential war crimes and/or human rights violations.
• Work with partner funds in the WPP to determine how any such investments might be withdrawn.

The committee discussed the motions and agreed to consider its response and next steps.

Draft Annual Report and Accounts 2024/25

The committee reviewed the draft annual report and accounts for the financial year ending 31 March 2025, which remain subject to audit. The report was prepared in line with guidance from the Chartered Institute of Public Finance and Accountancy² (CIPFA). The committee also:

• Noted the Audit Wales plan for the audit of the fund.
• Approved responses to Audit Wales's Enquiries of Management questionnaire.

A further meeting will be held in November to approve the final report and accounts.

Quarterly Investment Performance Report

The committee reviewed the quarterly investment performance report for the period 1 April to 30 June 2025. The Greater Gwent (Torfaen) Pension Fund posted a positive return of 4.19%, marginally underperforming the benchmark return of 4.20%. In cash terms this equated to an increase in Fund value of approximately £179m to £4.617bn. Over the past year, the Fund has returned +7.31%, which is 0.24% below the benchmark return of +7.55%.

The fund's equity exposure was the primary driver of overall returns during Q2, bolstered by the Fund's large allocation to the asset class. Performance among the Fund's other listed asset classes was also positive, albeit to a lesser degree.

The committee noted the investment performance.

Wales Pension Partnership (WPP) Update

The committee received an update on the activities of the WPP. As of 30 June 2025, approximately £3.51 billion (76.1% of AuM) of the Greater Gwent (Torfaen) Pension Fund's assets were managed by the WPP.

The committee was informed of progress with 'Project Snowdon', the establishment of a Financial Conduct Authority³ (FCA) regulated investment management company (named 'WPP IM Co'). WPP IM Co was officially incorporated on 12 August 2025, and Rob Lamb has been appointed as CEO. The committee noted the update.

Risk Register Update

The committee reviewed the updated risk register and updates implemented during the quarterly review. The likelihood of one risk, SR7 - Macro-economic and geo-political influences impacting the market value of the Pension Fund's investments, was reduced from 3 to 2.

Updated Risk Management Approach

The committee discussed proposed enhancements to the fund's existing risk management framework, including:

• A refreshed risk scoring matrix and evaluation criteria.
• Reframing of risk categories.
• Further embedding of key risk indicators (KRIs).
• Addition of new components and presentational changes to the risk register.

The committee supported proceeding with the proposed enhancements.

Elected Member Training

The committee noted the annual training programme and considered whether any specific training areas or topics should be included.

Triennial Valuation Update

The committee received an update on the 2025 triennial valuation exercise. The initial phase of the exercise has been completed, with key messages including:

• A 37% increase in the funding position between 31 March 2022 and 31 March 2025 (rising from 97% to 134%).
• A higher value of the fund's assets at the 2025 valuation due to higher asset returns over the inter-valuation period.
• Expectations of higher future returns at the 2025 valuation have reduced the value of the liabilities, despite high inflation over the inter-valuation period.

The next phase of the valuation is to examine employer-level results and contribution rates for 2026-2029.