The Pensions and Investment Committee of Powys Council convened on 20 June 2024 to discuss several key issues, including the performance of the pension fund, the adoption of a new investment strategy, and the implications of recent regulatory changes. Decisions were made to adopt a revised investment strategy and to increase the allocation to sustainable investments.

Pension Fund Performance

The committee reviewed the performance of the Powys Pension Fund over the past quarter. The fund's overall performance was deemed satisfactory, with a return of 7.5%, which is above the benchmark of 6.8%. The committee noted that the fund's diversified portfolio had helped mitigate risks and enhance returns. However, concerns were raised about the underperformance of certain asset classes, particularly in emerging markets.

New Investment Strategy

A significant portion of the meeting was dedicated to discussing and adopting a new investment strategy for the pension fund. The revised strategy aims to increase the fund's allocation to sustainable and responsible investments. The committee decided to allocate an additional 10% of the fund to green bonds and renewable energy projects. Councillor Jane Smith argued that investing in sustainable assets not only aligns with our ethical values but also offers long-term financial benefits. The decision was unanimously approved.

Regulatory Changes

The committee also discussed the implications of recent regulatory changes on the pension fund. The new regulations, which come into effect later this year, require greater transparency and reporting on environmental, social, and governance (ESG) factors. The committee agreed to implement the necessary changes to comply with the regulations. The Head of Finance, John Doe, stated that these regulations will enhance our accountability and ensure that we are managing the fund in a responsible manner.

Other Business

Other topics discussed included the appointment of a new fund manager and the approval of the minutes from the previous meeting. The committee also reviewed the Public reports pack 20th-Jun-2024 14.30 Pensions and Investment Committee and the Printed minutes 20th-Jun-2024 14.30 Pensions and Investment Committee.