The Pension Fund Investment Sub-Committee of Warwickshire Council was scheduled to discuss a range of governance and investment-related matters. Key topics included a review of the minutes from the Warwickshire Local Pension Board, an update on the Pension Fund Governance Report, and consideration of the 2025 Valuation. The committee was also set to review the Investment Strategy Statement and receive updates on general activity and cashflow management.

Review of Warwickshire Local Pension Board Minutes

The sub-committee was scheduled to review the minutes from the Warwickshire Local Pension Board meeting held on 21 October 2025. The report pack indicated that the sub-committee was recommended to note these minutes. The minutes of the Local Pension Board meeting themselves covered several key areas, including an update on pension administration activity and performance, with details on the self-service portal, annual benefit statements, and the McCloud remedy. They also discussed the LGPS Governance Action Plan, an investment update highlighting fund performance and private market assets, and a governance, regulatory, and policy update. This latter update included information on the forward plan, risk register, and the impact of the proposed unitary authority for Warwickshire.

Pension Fund Governance Report

A comprehensive report on Pension Fund Governance was scheduled for discussion. This report aimed to summarise the main governance issues affecting the Warwickshire Pension Fund, including its Forward Plan, risk monitoring, updated policies, and training. The Forward Plan, now presented with a four-year outlook, includes new sections on the Strategic Environment, Special Projects, and Contract Letting. The report also detailed the Risk Register, which is reviewed quarterly by Fund officers. While risk scores remained unchanged following the most recent review, new risk drivers and management actions were added, including concerns about a potential Tech or AI asset bubble and geopolitical uncertainty. The report also highlighted the addition of Artificial Intelligence (AI) as a distinct risk to be assessed.

Two key policies were presented for approval: the updated Responsible Investment Policy and the Voting Policy. The Responsible Investment Policy outlines the Fund's approach to integrating Environmental, Social, and Governance (ESG) factors into investment decisions to manage risks and generate suitable returns. The updated policy includes thematic sub-sections for human rights and nature, and clarifies the stance on engagement and divestment. The Voting Policy details the Fund's approach to investor stewardship and its policies on corporate sustainability issues, with amendments including the approach to voting on nature priority companies. Training for committee and board members was also discussed, with a summary of sessions held in 2025/26 and attendance records provided.

Investment Strategy Statement (ISS)

The sub-committee was scheduled to consider the Investment Strategy Statement (ISS). This document outlines the Fund's approach to investment, including its principles for responsible investment and its commitment to integrating ESG factors. The ISS details the Fund's long-term investment goals, its belief that ESG factors materially impact investment outcomes, and its commitment to managing climate-related financial risks and opportunities. It also states a preference for engagement over divestment, while retaining divestment as an option if engagement proves unsuccessful. The Fund's investment managers are expected to comply with relevant regulations and codes of practice, such as the UK Stewardship Code, and provide full disclosure on ESG issues.

General Activity Update and Cashflow Management

An update on the general activity of the Pension Fund for the fourth quarter of 2025 was scheduled. This would provide an overview of the Fund's operations and performance during that period. Additionally, a report on Cashflow Management was to be presented, detailing how the Fund manages its incoming and outgoing cash to ensure liquidity and operational efficiency.

Border to Coast - Strategy, Partnership, and Fit for the Future

The sub-committee was due to receive an update on Border to Coast Pensions Partnership, focusing on its strategy, partnership arrangements, and its Fit for the Future initiatives. Border to Coast is the pooling vehicle for several Local Government Pension Schemes, including Warwickshire's, and this discussion would likely cover its ongoing development and strategic direction.

LGPS Pooling - Implementation of Pooling Developments

Further to the discussion on Border to Coast, a report on the implementation of pooling developments within the Local Government Pension Scheme (LGPS) was scheduled. This would likely cover the progress and challenges associated with consolidating LGPS assets into pooled arrangements.

Quarterly Investment Management Report

A report providing a quarterly review of investment management activities was on the agenda. This would offer insights into the performance of the Fund's investments and the strategies employed by its investment managers.

Valuation 2025

The 2025 Valuation of the Pension Fund was a significant item on the agenda. This triennial valuation assesses the financial health of the pension fund, determining whether assets are sufficient to meet future pension liabilities and informing contribution rates for employers and members.

Other Scheduled Items

The agenda also included a review of the minutes of previous meetings, including exempt or confidential information, and the confirmation of minutes from prior meetings. The sub-committee was also scheduled to consider passing a resolution to exclude the public from discussions involving exempt or confidential information, as defined by the Local Government Act 1972.