The Pension Investment Sub-Committee of Worcester Council convened on Monday 10 June 2024 to discuss several key issues, including the PEL Benchmarking Review, investment management reports, and performance updates from various investment advisors. Decisions were made regarding the adoption of new investment strategies and the evaluation of current performance metrics.

PEL Benchmarking Review

The committee reviewed the PEL Benchmarking Review, which included an exempt appendix. This review aimed to assess the performance and efficiency of the Pension Fund's investments compared to industry standards. The committee discussed the findings in detail, noting areas where the fund was performing well and identifying opportunities for improvement. The decision was made to adopt several recommendations from the review to enhance the fund's performance.

Novum Investment Management Ltd Report

The committee examined the Novum Investment Management Ltd Cover Report. Novum Investment Management Ltd provided an overview of their investment strategy and performance. The report highlighted the firm's approach to risk management and asset allocation. The committee discussed the merits of Novum's strategy, with some members expressing concerns about the level of risk involved. Ultimately, the committee decided to continue with Novum's services, citing their strong track record and alignment with the fund's long-term goals.

Nomura Cover Report

The Nomura cover report was also reviewed. Nomura provided insights into their investment performance and future outlook. The committee discussed the report's findings, particularly focusing on Nomura's performance in emerging markets. Councillor Paul Convery noted, Nomura's expertise in emerging markets has been a valuable asset to our portfolio. The committee decided to maintain their investment with Nomura, recognising the potential for growth in these markets.

LGPSC Performance Update

The LGPSC Performance Update Cover Report was presented, detailing the performance of the Local Government Pension Scheme Central (LGPSC). The report highlighted the scheme's overall performance, including returns on investments and compliance with regulatory requirements. The committee discussed the importance of maintaining transparency and accountability in managing the pension fund. The decision was made to continue monitoring LGPSC's performance closely and to implement any necessary adjustments to ensure the fund's stability and growth.

PI Advisor Cover Report

The PI Advisor cover report was reviewed, providing an analysis of the pension fund's current investment advisors. The report assessed the advisors' performance, fees, and alignment with the fund's objectives. The committee discussed the need for a balanced approach to investment management, considering both performance and cost-efficiency. The decision was made to retain the current advisors while exploring additional options to diversify the fund's investment portfolio.

Public Reports Pack

The Public reports pack provided a comprehensive overview of the meeting's agenda and supporting documents. This pack included detailed reports and analyses that informed the committee's discussions and decisions.