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There is no summary of this meeting yet. One is written once the council publishes the minutes. The agenda and papers are below.
1.1 Apologies were received from Councillor Best.
2.1 Members confirmed the following declarations of personal interest: Councillor In Receipt of Pension Contributor Alfie Best NONE NONE Jon Horlor NONE Self Stuart Keyte NONE NONE David Williams Self and wife Self and wife Nathan Yeowell Father and two other family members (aunts) Self 2.2 The PS left the meeting.
3.1 The minutes of the meeting held on Monday 17th March 2025 were confirmed as an accurate record.
4.1 The Committee noted the minutes.
5.1 The Pension Manager outlined the report and provided an update on the administration services provided by the Greater Gwent (Torfaen) Pension Fund and highlighted several areas of current activity and development. 5.2 The current Operations Manager was due to take flexible retirement and would move from their current role to the McCloud project team. Retaining this member of staff and utilising their experience administrating McCloud was explained to be highly positive for the fund. Whilst it was acknowledged that change could have the potential for disruption, this allowed for other experienced members of the team to further develop their professional careers by taking on new roles. 5.3 The Pensions Manager highlighted the following areas of activity: • There had been a further 720 members registered for My Pensions Online. • There would be an alternative, newer system called Engage replacing My Pensions Online in due course. • There had been two additional temporary members of staff placed within the Benefit teams to free staff to assist with the additional workload caused by the McCloud Remedy. • The Pension Dashboard needed to be joined by 31st October 2025. Heywood Pension Technologies Integrated Service Provider (ISP) solution had been sourced to assist with integration. Phase one had been completed in January with phase two due to be started. 5.4 Following questions from the Committee, the PM made the following points: • My Pensions Online would cease to be promoted prior to the system being migrated. • My Pensions Online would no longer be supported by Heywood Pension Technologies. • There would be advertisement surrounding Engage sent to Members of the Fund. 5.5 The Committee gave thanks to Karen Thomas, Operations Manager, for her hard work and support over the years. 5.6 The Pensions Committee noted the report.
6.1 The Finance & Investments Manager outlined the report and provided an update on Pension Fund investment performance for the period 1st January 2025to 31st March 2025. 6.2 The Greater Gwent (Torfaen) Pension Fund had posted a slight negative return in this quarter and had underperformed the benchmark return by -0.22%. In cash terms this equated to a decrease in Fund value of approximately £57m. Over the past year the Fund has underperformed the benchmark return by 0.63%. It was noted that some of this could be attributed to the volatility of the dollar. The Fund performance remained positive over a three, five and ten-year period. 6.3 The Fund’s equity mandates performance varied considerably between investment managers from +7.12% to -4.83%. The Fund remained underweight its strategic target for real estate. To address this, the Fund planned to allocate capital to a new real estate product that would be launched by the WPP in the upcoming months. 6.4 The Independent Research Advisor gave the following insights surrounding current investment context: • The Trump administration had caused a period of tumultuous markets. This led to increased uncertainty and fluctuations in inflation. • Bonds were more volatile due to a lack of confidence in current governments. • The UK had shown more resilience than expected in respect of “stagnation” but there was still a propensity for further surprises with inflation. • Whilst Ukraine/Russia and Israel/Gaza tensions were still high, this had not greatly affected markets. 6.5 Following questions from the Committee, the Head of Pensions, Independent Research Advisor, Independent Investment Advisor and the Finance and Investments Manager made the following points: • Trying to predict currency markets was difficult. However, appropriate Foreign Exchange Hedging strategy measures were continually considered. • The Magnificent 7 contributed significantly to the percentage increase in the US stock market during 2024. However, this had seemed to reverse within the first quarter of 2025. • The pension research analytics firm Perc has assessed the performance of a large proportion of LGPS schemes. As of the 31st of March, 47 out of 86 funds had been analysed and it was found that average performance was about 3-3.5% return and the Greater Gwent Torfaen Fund was just over 5%. • The statistics on defined benefit pensions within the Northern Trust Report was not thought to include LGPS pensions. This would be clarified. • Non-US stocks had outperformed US stocks. ESG stocks had also been highly affected by the Trump administration during the period. 6.6 The Pension Committee noted the investment performance that has taken place during quarter one of 2025.
7.1 The Head of Pensions outlined the report and provided an update on the work undertaken by the Wales Pension Partnership (WPP) on behalf of the eight LGPS funds in Wales and to seek approval of the WPP Business Plan 2025-2028. 7.2 There had been a further WPP meeting that took place 4th June 2025 to make further approvals for upcoming projects and the WPP Business Plan for the period 2025-2028. The business plan included an update to the current budget due to the need to deliver Project Snowdon to establish a new company in line with the previously approved business case. 7.3 The Pension Committee: I. noted the content of this report as well as the respective appendices. II. approved the WPP Business Plan for the period 2025-2028 following confirmation that the Joint Governance Committee had approved it at their meeting on 4th June 2025.
8.1 The Finance and Investments Manager outlined the report and provided an update on the proposed recommendations contained within this report and to endorse to Torfaen County Borough Council for formal approval at its next meeting on July 22nd, 2025. 8.2 The business case proposal to retain a stand-alone investment pool for Wales and establishing a stand-alone Financial Conduct Authority authorised investment management company was approved by Government. This would now be referred to all eight relevant authorities to approve the delivery of this business case. 8.3 The Chair of Pensions Committee gave the Committee an in-depth explanation surrounding historical and contextual information as to the reasons a Financial Conduct Authority authorised investment management company was now needed within the WPP. 8.4 Following questions from the Committee, the Head of Pensions and Finances and Investment Manager made the following points: · The additional costs expected because of the pooling reforms announced by government were still being carefully considered. The push for further pooling of investments across Wales would be expected to generate greater offsetting fee savings via economies of scale. The new IM Co salaries had been estimated based on industry standards. Whilst the budget was still being developed at this stage, Pension Committee would be asked to approve this as part of broader “go live” approvals expected to follow later this year and prior to the IM Co becoming operational. As is the case within current pooling arrangements, all LGPS pooling costs incurred by WPP are expected to be shared equally across all eight funds. · The principal role of the Pensions Committee would not change. They would continue to set the Fund’s investment strategy and objectives whilst continuing to oversee the Governance of the Fund. However, implementation of the investment strategy would be moving to the LGPS pool in a more formal manner than the existing arrangements via the WPP. The HoP confirmed that there would be further training and engagement with members over the changes ahead in relation to pooling. 8.5 The Pensions Committee noted the contents of this report and accompanying appendices and endorsed this report to Torfaen County Borough Council for approval at its next meeting on July 22nd, 2025.
9.1 The Pension Committee noted the updated Risk Register and the key updates The Head of Pensions outlined the report and provided an update on how the Pension Fund approaches its management of risk. During this quarter a review of the whole risk register was undertaken. The summary of this review could be seen in appendix 3 of the report which included updates to control measures and residual risk score. 9.2 Following questions from the Committee, the Head of Pensions made the following points: • There were ongoing discussions internally about the presentation of the risk register including a potential review of the risk scoring matrix. Any changes would be brought before the Committee and Board for discussion at a later date. 9.4 The Pension Committee noted the updated Risk Register and the key updates implemented during the quarterly review.
10.1 The Pension Manager outlined the report and provided an update on training already undertaken by members of the Pension Committee and aided consideration of future training requirements. 10.2 There was training on Effective Decision Making available on LOLA. If members were unable to attend there would be a recording of the training available. 10.3 The Independent Research Analysist noted that she posted regular Youtube videos giving market context if Members wished to view these. 10.4 The Pensions Committee noted the annual training programme included in appendix 2 and considered whether any specific training areas or topics should be included.
11.1 The date of the next meeting would be sent to the Committee in due course.
12.1 The Committee agreed to the exclusion of the press and public from the meeting as presentations and meeting papers were not for publication because in accordance with paragraphs 12 and 14 of part 4 of Schedule 12a of the Local Government Act 1972 (as amended by the Access to Information Variation Order Wales 2007), it contained information about a particular individual and information relating to the financial and business affairs of particular persons including the Council and in all the circumstances of the case the public interest in maintaining the exemptions outweighs the public interest in disclosing the information. 12.2 The Chair invited the four members of the Pension Board to continue observing the meeting.
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