Agenda item

To receive and note –

·        Draft Statement of Accounts

For information, a report was submitted by the Investment Manager providing details of the financial activities of the Pension Fund during the year ending 31 March 2025.

It was reported that the accounts followed the statutory CIPFA format, with the guidance interpreting what was to be presented in the accounts. It was reiterated that the accounts were audited by Audit Wales in September and had already been submitted to the Pensions Committee on the 7 July 2025. It was noted that the year has been a busy one for the Fund as it continued to invest more broadly with the Wales Pension Partnership (WPP).

Attention was drawn to the Fund Account, noting that there were some variations as the contributions and benefits increased after employees received salary increases and also as the pension increased with the CPI. It was reiterated that there was an increase in management costs as the value of the assets increased and the introduction of different types of investments into the portfolio e.g. private credit. It was reiterated that there was an increase of around £160 million in the market value of the fund which was in line with the annual gradual increase.

It was highlighted that the fund's investment income had increased substantially, and the equity investments had performed strongly and had therefore generated a substantial income. It was noted that as part of the new strategic asset allocation, there was a greater investment impact in the fixed income and infrastructure funds.

Reference was also made to the statutory notes contained in the report which gave details behind the figures along with further details about the activities of the Fund and WPP.

The members thanked the officer for the report

Observations arising from the ensuing discussion:

·        Reference to 'Cyngor Gwynedd area' - need to include Conwy and Ynys Môn?

·        The work had been completed in a timely and professional manner with new investment complexities to be considered and included.

·        That there was a significant increase in infrastructure fees (from 2,875 to 4,851) – this needed to be monitored.

In response to a comment regarding a significant increase in the costs of the Performance Monitoring Service, it was stated that the reason for this was that historical invoices were due and the funds in which the Fund invests were more complex. It was also noted in response to a comment on an increase in Wales Pension Partnership (WPP) managers' fees (from 3,193 to 5,624), that this was due to a shift from a historical investment pattern to investment work in new investments and different funds, and therefore the fees varied.

In response to a question about an increase in unclaimed benefits (from 4,006 in 2024 to 4,683 in 2025), it was noted that this related to leavers who had left employment but had not decided what action they wanted to take in relation to their benefits, but that the benefits need to be processed. It was noted that an effort had been made to reduce the number when preparing work for the dashboard.

RESOLVED to accept and note the statement of Accounts of the Pension Fund (subject to audit) for 2024/25.