Agenda item

To inform the board of performance of Pension Fund investments

A report was submitted by the Investment Manager, providing an update on the fund's performance. It was explained that the Fund had performed very well and had seen gradual progress over the past 20 years. By 30 September 2021, the fund was in a very healthy situation and was worth £2.7 billion.

Reference was made to the Fund's investment performance and it was highlighted that although the fund had underperformed during the past quarter due to very challenging conditions, that the performance over the year remained above the benchmark.  In relation to the performance of the Equity Investment Managers, it was reported that the performance was very good, as was the performance of the Fixed Income investments, which were above the benchmark over the year.

In respect of the performance of Property Managers, it was highlighted that the year had been very challenging, with uncertainty in some sectors such as offices and retail. It was reiterated that the retail sector was starting to stabilise but the uncertainty remained in relation to the future of offices at this point in time. It was reported that growth had continued in the industrial and logistics field, with the impact of e-commerce on the supply chain. It was noted that it would be interesting to see how property would stabilise in future. It was also expressed that the Property Managers had a very good GRESB (Global Real Estate Sustainability Benchmark) score, which was a very important factor these days.

Details were presented on the Partners Group, explaining that it was not possible to see the actual profit and returns on these investments until the individual assets were sold. It was reiterated that the situation was continually monitored by Hymans Robertson and that there were no concerns to report.

Gratitude was expressed for the report

During the ensuing discussion, the following observations were made by members:

·         That the figures were good and encouraging

·         There were no negatives in the report, despite the need to keep an eye on property investments

·         The Department was congratulated for its work - the Fund was in good hands

In response to the news that Mr Dafydd Edwards, the Head of Finance, would be starting his flexible retirement from January 2022 and the succession plan, it was noted that Mr Dewi Morgan had been appointed as Gwynedd Council Head of Finance. Consequently, Mr Dafydd Edwards would take on the role of Director of Gwynedd Pension Fund for an 18 month period, which would ensure consistency and a smooth transition for the future. It was reiterated that Mr Dewi Morgan would be invited to the investment discussions and the Investment Manager and Pensions Manager would evolve into their roles. In response, it was noted that the succession plan reassured Members.

In response to a question regarding the Investment Strategy, it was noted that the Strategy was updated every 3 years, and the new Strategy was to be published in March 2023, following the valuation in October 2022.