The Pension Fund Investment Sub-Committee of Warwickshire Council was scheduled to discuss a range of financial and governance matters. Key topics included an economic update, a review of the pension fund's governance, and an update on climate risk policy and net zero strategy.

Economic Update

The meeting was scheduled to receive an update on market developments from January to May 2026. This included information on central bank policy and exchange rates, with a note that the Bank of England, US Federal Reserve, and ECB had adopted a wait-and-see approach as inflationary pressures mounted. The report pack indicated that global equity markets had recovered from the Middle East conflict, with particular confidence in US equities and AI-related stocks. Sovereign and corporate bond markets had experienced a sell-off, with UK bonds being more affected than US bonds. Real yields in the UK remained elevated, impacting long-duration assets, while US credit spreads were near multi-year lows. The outlook for June to December 2026 suggested a risk of a new cost-of-living crisis due to the Middle East conflict, which was expected to reduce global growth and keep interest rates higher.

Climate Risk Policy and Net Zero Strategy

A significant portion of the meeting was scheduled to be dedicated to the Climate Risk Policy and Net Zero Strategy. The report pack indicated that this would involve a review of the policy and strategy, with a focus on how the fund intends to address climate-related risks and contribute to achieving net zero emissions. This topic was allocated a substantial number of pages in the report pack, suggesting a detailed discussion was anticipated.

Pension Fund Governance Report

The sub-committee was scheduled to consider a report on the Pension Fund's governance. This report included updates on the Fund's Forward Plan, which outlines a four-year outlook and incorporates strategic environmental issues such as the Pensions Schemes Act 2026 and Local Government Reorganisation. The report also detailed proposed training sessions for committee members, particularly focusing on holding the pool, Border to Coast Pensions Partnership, to account, in light of the Pensions Schemes Act 2026. Training topics included holding asset managers to account, reporting and management of investment risk, and understanding Border to Coast's whole fund reporting and deep dive reports. Additionally, the report mentioned the upcoming release of an updated LGPS Online Learning Academy (LOLA) and the review of several policies, including the Communications Policy, Breaches Policy, Cyber Security Policy, and Business Continuity Plan.

Quarterly Investment Management Review

A review of investment management performance over the quarter was also on the agenda. This would have provided an overview of how the fund's investments had performed and any key factors influencing that performance.

Border to Coast Response to Fixed Income Mandate Letter

The sub-committee was scheduled to consider the Border to Coast Pensions Partnership's response to a fixed income mandate letter. This item would have likely involved a discussion of the terms and implications of this mandate.

Pooling Governance Update

Chris Norton, Head of Investments, Audit and Insurance, was scheduled to provide a verbal update on pooling governance. This would have offered a more immediate insight into developments related to the pooling of pension funds.

Risk Register 2026

The meeting was also set to review the Pension Fund's Risk Register for 2026. This would have involved an assessment of the key risks facing the fund and the strategies in place to manage them.

General Activity Update

A general update on the fund's activities was also planned, likely covering a range of operational and administrative matters.

Exempt and Confidential Information

Several agenda items were designated as containing exempt or confidential information, requiring the exclusion of the public from these parts of the meeting. These included discussions on Valuation 2025, the Investment Strategy Statement, General Activity Update Q4 2025, Cashflow Management, Border to Coast - Strategy, Partnership, and Fit for the Future, LGPS Pooling - Implementation of Pooling Developments, and the Quarterly Investment Management Report. The minutes of previous exempt meetings were also to be considered.