This meeting was scheduled to consider routine updates on the investment performance and administration of the Cornwall Pension Fund, and to receive an update from the Brunel Pension Partnership.¹ It was also scheduled to consider a new Risk Management Policy.

Investments Update

The Committee was scheduled to receive the routine quarterly update on the performance of the investments managed by the Fund, to consider the implications of recent market movements for the Fund's future performance, and to review progress on various responsible investment initiatives.

This included a report on the performance of each of the Fund's assets in the last three months to 30 September 2024. The report pack scheduled for discussion shows that, during that period, the total value of the Fund increased to £2,564 million. The report pack also shows that, over the period, the total Fund produced a return of 1.8%, compared to a target of 1.7%, and that this was achieved against a background of significant market volatility. This includes a fall of 10.7% in the value of Commodities, and an increase of 9.7% in the value of Emerging Market Equities (Local Currency).

Also included for discussion was a report detailing the activities that have taken place over the last three months on responsible investment.

The Cornwall Pension Fund’s Pensions Committee (“Committee”) has a fiduciary duty to act in the best interest of its members. To do this effectively, the Committee recognises the importance of managing Environmental, Social and Corporate Governance (“ESG”) issues, including climate change, that are financially material to the Fund, both in terms of opportunities and risks.

This included:

• The completion of the annual Member Survey, which was scheduled for discussion to establish what members thought about the Fund's approach to responsible investment.
• A report on the Fund's compliance with the Financial Reporting Council (FRC) UK Stewardship Code, which sets out the standards expected of those investing money on behalf of UK savers and pensioners, and which the Fund has to report against annually in order to maintain signatory status.
• Completion of the annual Responsible Investment Outcomes report, which details the progress the Fund has made on evolving its policies, and details some of the RI achievements the Fund and Brunel Pension Partnership has made over the year.
• The development of an impact reporting process.

Benefits Team Update

The Committee was scheduled to receive its routine quarterly update on the activity of the Fund's Benefits Team.

Included for discussion was a report on the volumes of work completed by the Benefits Team over the last quarter. The report pack shows that, in that period, there were 5,373 new tasks started by the team, and 5,104 tasks completed. The report pack also shows that 11,058 members have now registered for the 'My Pension Online' member self-service portal.

Also included for discussion was an update on the work the team is doing to implement the McCloud judgement, and to calculate the impact of the remedy for members who would have potentially been better off in terms of benefit accrual if the LGPS had remained a final salary scheme.

Governance Update

The Committee was scheduled to consider a number of routine updates on the governance of the Fund, and to review a new Risk Management Policy.

This included a summary of the risks facing the Fund, which are assessed each quarter to help inform decision-making and to ensure that the Fund is being managed appropriately.

The average rating of the risks associated with Funding & Investments has remained static since the previous quarter. However, three risk scores have been amended in line with the detail provided on slide 3. F&I 2 has been moved from an amber to green risk, whilst F&I 5 and F&I 16 have both had their risk scores increased from amber to red.

The report pack shows that, in particular, the Committee was scheduled to be made aware of the following three 'red' risks:

• Geopolitical/market events impact on scheme funding and investments/investment valuation volatility
• Fund managers/Brunel fail to meet benchmarked returns
• Uncertainty surrounding proposed MHCLG changes to pooling arrangements.

The Committee was scheduled to review the minutes of the last meeting of the Local Pension Board, which is responsible for assisting the Administering Authority in securing compliance with the LGPS Regulations, and for reviewing the administration of the Scheme.

The report pack shows that the Committee was also scheduled to consider the results of an assessment of the Fund's cyber security arrangements, and its compliance with the new Pensions Regulator's General Code of Practice. It was also scheduled to review the Fund's attendance and training record, and to approve a new Risk Management Policy for the Fund.

Brunel Pension Partnership Update

The Committee was scheduled to receive a presentation from a representative of the Brunel Pension Partnership on the Partnership's recent activities, including:

• Discussions that took place at the COP29 climate summit held in Baku, Azerbaijan.
• The role Brunel is playing in advising the new National Wealth Fund.
• Changes to the Partnership's Remuneration Policy.