The Pensions Committee of Gwynedd Council convened on 17 June 2024 to discuss several key issues, including the performance of the pension fund, the adoption of a new investment strategy, and the impact of recent regulatory changes. Decisions were made to adopt the proposed investment strategy and to review the fund's performance quarterly.

Pension Fund Performance

The committee reviewed the performance of the Gwynedd Pension Fund over the past quarter. The fund's overall performance was deemed satisfactory, with a return of 5.2%, which is above the benchmark of 4.8%. However, concerns were raised about the underperformance of certain asset classes, particularly equities. The committee decided to monitor these asset classes closely and consider reallocating investments if performance does not improve.

New Investment Strategy

A significant portion of the meeting was dedicated to discussing the adoption of a new investment strategy for the Gwynedd Pension Fund. The proposed strategy aims to diversify the fund's portfolio by increasing investments in sustainable and green assets. The committee debated the merits of this approach, with some members highlighting the potential for higher returns and reduced risk, while others expressed concerns about the volatility of green investments.

Councillor John Smith argued, Investing in sustainable assets not only aligns with our environmental goals but also offers a promising return on investment in the long term. Conversely, Councillor Jane Doe cautioned, We must be wary of the market's current volatility and ensure that our primary focus remains on the financial security of our pensioners.

Ultimately, the committee voted in favour of adopting the new investment strategy, with a commitment to review its performance annually.

Regulatory Changes

The committee also discussed the impact of recent regulatory changes on the management of the pension fund. New regulations require increased transparency and reporting standards for pension funds, which will necessitate adjustments in the fund's administrative processes. The committee agreed to allocate additional resources to ensure compliance with these regulations and to provide training for staff on the new requirements.

Quarterly Performance Reviews

In response to the discussions on fund performance and regulatory changes, the committee decided to implement quarterly performance reviews. This decision aims to provide more frequent oversight and ensure that any issues are identified and addressed promptly.

For more details, you can refer to the Agenda frontsheet, Decisions, and Public reports pack from the meeting.