The Dyfed Pension Fund Board met on Wednesday 21 January 2026 to review the fund's financial performance, budget, and risk management strategies. Key decisions included noting the audit of financial statements for 2024-25, approving the Pension Board Work Plan for 2026, and noting updates on the Wales Pension Partnership's activities.

Audit of Financial Statements Report 2024-25

The Board received the Audit of Financial Statements Report for the 2024-25 financial year, prepared by Audit Wales. The report confirmed an unqualified audit opinion on the financial statements, indicating they give a true and fair view of the Dyfed Pension Fund's financial position. There were no material misstatements identified that remained uncorrected. The Board expressed appreciation to the team for their work, which resulted in a successful audit.

Budget Monitoring and Cash Position as at 30 September 2025

The Board reviewed the budget monitoring report for the Dyfed Pension Fund as at 30 September 2025. The report indicated an overall underspend of £5.46 million against the budget. Expenditure was projected to be underspent by £896,000, with pensions payable forecast to be £406,000 under budget and management expenses £490,000 under budget. Income was forecast to be £4.56 million more than budgeted, primarily due to higher than anticipated investment income, which was attributed to the WPP Global Credit Fund income being distributed as cash rather than reinvested. The total estimated expenditure was £146.38 million, with total estimated income at £151.84 million. The fund's cash position reported £15 million held by Carmarthenshire County Council for immediate cash flow requirements.

Breaches Report

The Board considered the Breaches Report for the Dyfed Pension Fund, which details any breaches of the law relating to the administration of the pension scheme. Section 70 of the Pension Act 2004 mandates the reporting of such breaches to the Pensions Regulator if they are deemed to be of material significance. The report noted one instance of late receipt of contributions from an employer since the previous meeting, which had been resolved and had no long-term implications. The report also highlighted ongoing issues with the automatic payment of refunds for post-2014 leavers where members have not provided bank details, and noted that the National Technical Group has recommended amendments to regulations regarding refunds.

Risk Register

The Board reviewed the Dyfed Pension Fund's Risk Register, a document that identifies and assesses all risks associated with the fund's operations. The register is regularly monitored and reviewed, categorising risks as operational or strategic. The focus of this review was on the 17 identified operational risks (O1-O17). It was confirmed that there had been no changes to these risks since the previous committee meeting. Specific attention was given to risk O3, relating to the reduction of impact, which would be reviewed. Regarding risk O8, concerning high staff turnover, the Board was informed of ongoing training and development initiatives aimed at retaining administration staff. For risk O17, concerning cyber risks, the Board noted the adoption of a Cyber Security Policy, acknowledging the authority's expertise in this area and the fund's own specific policy for pensions activity.

Training Plan

An update on the Training Plan for 2025-2026 was presented, detailing the schedule of committee meetings and training events for both members and officers of the Dyfed Pension Fund. The Board noted the plan.

Notices of Motion

The Board received and noted a report detailing Notices of Motion referred from Carmarthenshire County Council and Ceredigion County Council. Both councils expressed concerns about investments in companies potentially complicit in human rights violations or war crimes, particularly in relation to the conflict in Gaza and Israel. The report stated that the Wales Pension Partnership (WPP) and the Dyfed Pension Fund believe companies should respect human rights and adhere to international standards. While the WPP and Fund have exclusion criteria for certain activities (e.g., tobacco, controversial weapons), they do not currently have a single, overarching exclusion list for all investment strategies. The WPP is currently developing an exclusions framework, which will be presented to the Joint Governance Committee (JGC). The report emphasised that the Dyfed Pension Fund cannot dictate the WPP's investment policy unilaterally, and that a collaborative approach is necessary. The Board noted the actions being taken in response to these motions.

Wales Pension Partnership (WPP) Joint Governance Committee (JGC) Update

The Board received an update from the WPP's JGC meeting held on 17 September 2025. The update covered governance, sub-fund development, operator services, investments and reporting, communication and training, resources, budget, and fees. The report included an update from the operator, Waystone, detailing corporate and compliance matters, sub-fund values as at 30 June 2025, fund snapshots for equities and fixed income, initiatives, market updates, and engagement schedules. A summary and commentary on WPP's investment performance for Q2 2025 was also appended. GCM Grosvenor provided an update on infrastructure investments, which was included in the report. The Board noted the update.

Wales Pension Partnership Responsible Investment Update - June 2025

The Board received the WPP's Responsible Investment (RI) update report as at 30 June 2025. Prepared by WPP's Oversight Advisor, Hymans Robertson, in conjunction with WPP, the report detailed recent RI activities and provided information on the Global Growth, Sustainable Active Equity, and Global Credit Sub-Funds in which the Dyfed Pension Fund is invested. The update highlighted ongoing work on the All-Wales Climate Report, the evolution of passive mandates with an ESG focus, and the WPP's continued adherence to the UK Stewardship Code. It also noted progress on developing an all-Wales impact report and the review and updating of RI, Climate Change, and Stewardship Policies.

Pension Board Budget Monitoring 1 April 2025 – 31 December 2025

The Board reviewed the Pension Board Budget Monitoring report for the period 1 April 2025 to 31 December 2025. The total expenditure incurred during this period was £18.5k, indicating an underspend compared to the budget. The report detailed expenditure across various categories, including the Chair's annual fee, training costs, travel expenses, and liability insurance.

Pension Board Budget 2026-27

The Board considered the proposed Pension Board Budget for 2026-27. The budget showed an increase compared to the previous year, primarily to reflect the tender of the Pension Board Chair and Administration fee on the insurance. The proposed budget was noted.

Pension Board Work Plan 2026

The Board reviewed the Pension Board Work Plan for 2026, which outlines the planned activities and items to be presented at each meeting throughout the year. The Work Plan will be subject to review and revision at subsequent Board meetings. The Board noted the plan.

Pension Board Action Log

The Board considered the Pension Board Action Log, which details outstanding actions and updates from previous meetings. The log is reviewed and updated at each Board meeting. The Board noted the log.

The following items were considered in private session due to containing exempt information:

Robeco Engagement Report 1 April 2025 - 30 June 2025

The Board received the Robeco Engagement report for the period 1 April 2025 to 30 June 2025. This report provided detailed statistics on engagement activities undertaken on the WPP portfolio, including case studies on biodiversity and acceleration to zero deforestation. The Board noted the report.

Independent Advisor Performance & Risk Report to 30 September 2025

The Board received the Independent Investment Adviser Report, which provided information on investment managers' performance for the quarterly, 12-month, and rolling 3-year periods ending 30 September 2025. The report also included a global market overview and issues for consideration. The Board noted the report and approved the transition of the ACS World Low Carbon Equity Tracker Fund to the Acquila Life WPP World ESG Insights Equity Fund.

Northern Trust Performance Report to 30 September 2025

The Board considered the Northern Trust Performance report for the Dyfed Pension Fund as at 30 September 2025. This report provided performance analysis at both a total fund level and by individual investment manager for periods since inception. The Board noted the report.