The Pension Investment Sub-Committee of Worcestershire Council convened on 10 June 2024 to discuss various investment management reports and performance updates. Key decisions included the approval of a new investment strategy and the review of performance benchmarks.

Investment Strategy Approval

The Sub-Committee approved a new investment strategy proposed by Novum Investment Management Ltd. The strategy aims to diversify the pension fund's portfolio by increasing allocations to sustainable and impact investments. Proponents argued that this approach aligns with the council's commitment to environmental, social, and governance (ESG) principles. One member noted, This strategy not only promises better returns but also ensures our investments are ethically sound, while another expressed concerns about potential risks associated with newer, less established markets.

Performance Benchmarking Review

The Sub-Committee conducted a benchmarking review of the pension fund's performance. The review, presented by Pensions and Investments Limited (PEL), highlighted that the fund's returns were in line with industry standards but identified areas for improvement. The report recommended adjustments to asset allocations to enhance performance. A member commented, While our performance is satisfactory, we must strive for excellence by continuously refining our strategies.

Nomura Investment Update

A report from Nomura provided an update on the performance of their managed assets. The report indicated steady growth and highlighted successful investments in emerging markets. However, it also pointed out potential risks due to geopolitical instability. The Sub-Committee decided to maintain the current investment levels with Nomura but requested a more detailed risk assessment for future meetings.

LGPSC Performance Update

The Local Government Pension Scheme Central (LGPSC) provided a performance update, showing positive returns over the last quarter. The update included a detailed analysis of various asset classes, with equities performing particularly well. The Sub-Committee expressed satisfaction with the results and decided to continue monitoring the performance closely.

Public Reports Pack

The public reports pack for the meeting included detailed documents on all discussed topics, ensuring transparency and public accessibility to the Sub-Committee's deliberations and decisions.