Issue - meetings

To receive and note the draft Statement of Accounts

To accept and note the Pension Fund's Statement of Accounts (subject to audit) for 2021/22.

Submitted, for information, the report of the Investment Manager to provide details of the financial activities of the Pension Fund during the year ending on 31 March 2022.  It was highlighted that the accounts (draft) were subject to audit and the audit would be undertaken by Audit Wales.

It was reported that the accounts followed the statutory CIPFA format, with the guidance interpreting what was presented in the accounts. 

It was expressed that the year had been very busy for the fund when transferring emerging markets for the Wales Pension Partnership, setting a net zero target and monitoring the effects of events such as the Ukraine war. Reference was made to a summary of the fund account, noting that the figures were relatively consistent. It was reiterated that there had been a reduction in the management costs since the previous year, after the Partners fees had stabilised.

With an increase in the fund's market value of £247 million, the value of the fund came to £2.7billion.

The Fund Director took the opportunity to thank the Investment Team for its commitment to ensure that the Statement of Accounts (Draft) had been completed within the timetable. He noted that the Head of Finance had already certified the draft accounts and that sharing the accounts with the Members was good practice, in order to give them an opportunity to ask questions / make observations.

Thanks were expressed for the report.

In response to a question regarding the explanation of 'unclaimed benefits', it was noted that the term referred to situations, e.g. where repayments had been frozen, failure to identify the location of an individual or very simply, benefits that had not been claimed by contributors.

In response to an observation regarding a reduction in the sales over the year, it was noted that the reduction referred to the activity and not to a reduction in value. It was reiterated that the activity of transferring investments had created an impact (83% of investments now transferred to the Wales Pension Fund).

In response to a question regarding a reduction in the net gains on investments

In response to a question regarding a reduction in the net gains on investments (£249.18m on 31 March 2022 compared with £596.28m on 31 March 2021), it was noted that stock market equity investments had been prosperous since the pandemic struck in March 2020, but it had now stabilised - nevertheless, it was explained that £249.18m of gains indicated a good year.

In response to a question regarding the contributions of contributors being equal for all, regardless of the employer contributions, it was noted that the contributions varied, with changes being introduced with the triennial valuation.

RESOLVED to accept and note the Pension Fund's Statement of Accounts (subject to audit) for 2021/22.