The Dyfed Pension Fund Committee met on Monday 10 November 2025 to review the fund's financial performance, risk management, and investment strategies. Key decisions included approving the transition of a fund to an ESG-focused equity fund and noting various reports on budget monitoring, audit findings, and responsible investment activities. The committee also addressed notices of motion concerning ethical investments and received updates on the Wales Pension Partnership's activities.

Dyfed Pension Fund Pension Board Report

The committee received an update on the discussions from the Dyfed Pension Fund Pension Board meeting held on 14 October 2025. Items covered included budget monitoring, pensions administration, the cyber policy, updates on the Wales Pension Partnership (WPP), engagement reporting, and investment performance.

Audit of Financial Statements Report 2024-2025

The committee received the Audit of Financial Statements Report for 2024-25. Jason Blewitt from Audit Wales presented the findings, noting that an unqualified audit opinion had been issued. The committee welcomed the successful audit and thanked the Audit Wales team and the Pension Investment and Administration teams for their work. There were no uncorrected misstatements identified in the financial statements.

Budget Monitoring and Cash Position as at 30 September 2025

The committee reviewed the budget monitoring report, which indicated an underspend of £5.46 million against the budget as at the end of September 2025. Expenditure was projected to be underspent by £896,000, primarily due to lower than anticipated costs for pensions payable and management expenses. Income was forecast to be £4.56 million over budget, largely due to higher than anticipated augmentation income from employers and investment income from the WPP Global Credit Fund. The fund's cash position showed £15 million held by Carmarthenshire County Council for immediate cash flow requirements.

Breaches Report

The committee received the Breaches Report, which detailed instances of late contributions from employers. Since the previous meeting, there had been one case of late contributions, with no long-term implications identified. The report also noted updates on the automatic payment of refunds for post-2014 leavers.

Risk Register

The committee reviewed the Risk Register, which outlines identified risks related to the Dyfed Pension Fund's functions. The focus for this review was on operational risks, with no changes to the identified risks since the previous committee meeting.

Training Plan 2025-2026

An update on the Training Plan for 2025-2026 was presented, detailing the schedule of committee meetings and training events for members and officers.

Notices of Motion

The committee considered Notices of Motion referred from Carmarthenshire County Council and Ceredigion County Council. Both councils expressed a desire not to be associated with companies complicit in the conflict in Gaza or human rights violations, urging the WPP and Dyfed Pension Fund to consider divestment. The report highlighted that the WPP and the Fund believe in addressing Environmental, Social, and Governance (ESG) issues through stewardship rather than blanket divestment. The WPP is currently reviewing its investment framework, including the development of an exclusions framework, and the Fund is actively participating in this process. The committee noted that the Fund, in its own right, cannot dictate the WPP's investment policy, requiring a collaborative approach. A query was raised regarding the timeline for the investment framework review, with the Treasury and Pension Investments Manager stating that a definitive date was challenging to provide due to the complexity of the work, but assured the committee of a thorough review. The committee resolved to note the Notices of Motion and the actions being taken.

Wales Pension Partnership (WPP) Joint Governance Committee (JGC) Update

An update was received from the WPP's JGC meeting on 17 September 2025, covering governance, sub-fund development, operator services, investments, reporting, communication, training, resources, budget, and fees. The report included an update on the WPP's business plan, operator services, and investment performance for Q2 2025. GCM Grosvenor provided an update on infrastructure investments.

Wales Pension Partnership Responsible Investment Update - June 2025

The committee received the WPP's Responsible Investment (RI) update report for the quarter ending 30 June 2025. Prepared by Hymans Robertson LLP, the report detailed recent RI activities and information concerning the Global Growth, Sustainable Active Equity, and Global Credit Sub-Funds. The update highlighted ongoing work on the All-Wales Climate Report, the evolution of passive mandates with an ESG focus, and the WPP's continued commitment as a signatory to the UK Stewardship Code. It also noted progress on developing an all-Wales impact report and policy reviews for RI, climate change, and stewardship. Robeco's role as the WPP's voting and engagement provider was also detailed, including specific engagement cases on biodiversity, climate change, and human rights.

Exclusion of the Public

The committee resolved to exclude the public from the meeting for the following agenda items as the reports contained exempt information.

Robeco Engagement Report 1 April 2025 - 30 June 2025

The committee received and noted the Robeco engagement report for the period 1 January 2025 to 30 June 2025. This report provided statistics on engagement activities undertaken within the WPP portfolio, with a focus on Biodiversity and Acceleration to Zero-Deforestation.

Independent Advisor Performance & Risk Report to 30 September 2025

The committee received the Independent Investment Adviser Report, which detailed investment manager performance for quarterly, 12-month, and rolling 3-year periods ending 30 September 2025. The report also included global market background and issues for consideration. The committee resolved to note the report and approved the transition of the ACS World Low Carbon Equity Tracker Fund to the Acquila Life WPP World ESG Insights Equity Fund.

Northern Trust Performance Report to 30 September 2025

The committee considered the Northern Trust Performance report for the Dyfed Pension Fund as at 30 September 2025, which provided performance analysis at both a total fund and individual investment manager level. The committee resolved to note the report.

Questions from Members of the Public:

The committee received written responses to two questions submitted by members of the public. Mr. Bob Clay asked about plans for public engagement rules for the committee, to which it was stated that a procedure was being developed in compliance with constitutional requirements and would be presented for consideration. Mr. Gavin Evans questioned the lack of employee representation on the committee, and the response explained that the current structure, with elected members from the administering authority, is considered appropriate and similar to other LGPS funds. It was also noted that the Pension Board includes scheme member representatives.