The Pensions Committee of Cardiff Council met on Wednesday 22 July 2026 to review the fund's asset allocation for the upcoming year, discuss updates on the Fit for the Future guidance, and consider the Wales Pension Partnership's investment performance. The committee also reviewed the Pension Fund's risk register and its draft business plan for 2026/27.

Asset Allocation 2026/27

The committee was scheduled to review the Cardiff & Vale of Glamorgan Pension Fund's proposed Strategic Asset Allocation for 2026/27. This review was informed by a report from Aon, the Fund Actuary, following an increase in the Fund's funding level to 111% in the 2025 triennial valuation. The report from Aon recommended changes to derisk the current asset allocation to protect the funding surplus. Key recommendations included investments in index-linked gilts and a low-risk liquid alternatives active diversifiers fund, alongside a reduction in listed equities. The proposed allocation aimed to improve diversification and reduce risk while maintaining expected returns. The report also noted that the Wales Pension Partnership Investment Management Company (IMCo) would be responsible for implementing the fund's investment strategy once operational.

Fit for the Future Guidance

An update was scheduled regarding the Fit for the Future guidance recently issued by the Ministry of Housing, Communities and Local Government (MHCLG). This guidance, which took effect on 30 June 2026, covers three key areas: Fund Governance, Investment Strategy Statement (ISS) Guidance, and Asset Pooling Guidance. The guidance introduces new requirements for Administering Authorities (AAs), including the appointment of an LGPS Senior Officer and an Independent Person, and the undertaking of Independent Governance Reviews (IGRs). It also reinforces the requirement for AAs to participate in a pool company, which must be FCA authorised and adequately resourced, and for all LGPS assets to be managed by these pool companies. The guidance also outlines requirements for preparing and maintaining an Investment Strategy Statement (ISS), which must include return, risk, cash flow, and local investment objectives.

Wales Pension Partnership and Investment Update

The committee was set to receive an update on the Wales Pension Partnership (WPP) and the Fund's investments. As of 31 March 2026, the Fund had investments totalling £3,327 million in thirteen WPP products, representing approximately 96% of the Fund's total valuation. The report detailed the value of these investments across various asset classes, including equities, fixed income, property, and private markets. It also provided a summary of the performance of major financial markets over the 12 months to July 2026, noting challenging market conditions and significant volatility.

Pension Fund Risk Register

The committee was scheduled to consider the Pension Fund's Risk Register. This register, maintained as part of the Corporate Risk Management process, covers investments, funding, governance, and administration. The report highlighted changes to the register, including updates to the narrative for proposed improvement actions related to the 2025 Valuation, the inclusion of references to Access and Fairness regulations, and the closure of a specific risk. Amendments were also noted regarding the recruitment for new staffing structures and the operational readiness of the WPP Investment Management Company (IMCo).

Business Plan 2026/27

The committee was to consider the draft Business Plan for the Pension Fund for 2026/27. The plan outlines key action points for the administration of the Fund, including achievements from the previous financial year such as adapting to hybrid working, delivering Annual Benefit Statements, renewing the pledge to combat pension scams, and continuing the implementation of the Pensions Restructure. Key work priorities for the upcoming year include working with WPP on its transition to an FCA-regulated investment management company, reviewing opportunities in WPP Private Market sub-funds, and implementing new regulations and guidance. The plan also includes a summary budget for 2026/27 and estimates for the following two years, detailing the Fund's income and expenditure.

Minutes of the Local Pension Board

The committee was scheduled to note the minutes of the Local Pension Board meeting held on 27 January 2026.

Minutes of the Investment Advisory Panel

The committee was scheduled to note the minutes of the Investment Advisory Panel meeting held on 31 March 2026.