Agenda item

To receive and note the Draft Statement of Accounts.

DECISION

To accept and note the Pension Fund's Statement of Accounts (subject to audit) for 2025/26

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 2026. 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 CIPFA statutory format, with the guidance interpreting what was submitted in the accounts and there was no change in the guidance from the previous year.

It was expressed that it had been a busy year for the Fund and work continued with wider investment with the Wales Pension Partnership. Reference was made to a summary of the Fund account, drawing attention to a few variations in the contributions and benefits. It was noted that there had been a reduction in management costs as various investments were introduced to the portfolio and by reducing investments with the Partners group, which had historically had higher management fees. It was reiterated that the investment income had increased as the Fund received a regular income from new investments such as infrastructure and private equity within the Wales Pension Partnership's funds with an increase of approximately £280 million in the fund's market value which was in accordance with the gradual annual increase.

Attention was drawn to the statutory notes which provided further details behind the figures, the activities of the Fund, and Wales Pension Partnership, as the Partnership was now a prominent part of the Fund's work.

As the Section 151 Officer, the Head of Finance Department reiterated that he had signed the draft accounts, accepting that they were a correct and fair reflection of the situation.

The officers were thanked for their work of bringing the accounts together - it was a substantial and complex task that had been presented well and professionally.

Gratitude was also expressed for the WPP's work for being mainly responsible for the progress.

In response to a question regarding the total net assets of the fund available to fund benefits at the end of the reporting period - the difference between 31 March 2025 and 31 March 2026 was £362 million, and if that, which was an incredible figure, was a correct figure, it was confirmed that since the fund's size was now £3.6 billion, the fund was now dealing with major sums - the figure represented a 10% growth which was in line with the progress seen over the past years. It was noted that an Annual Report would be submitted at the next Committee, supporting and explaining the figures in more detail and including Information on how the Fund had increased over the years.

In response to a question regarding the market value, it was confirmed that the figures had been based on market value as at 31 March 2026.

Observations arising from the ensuing discussion

·        That the income had increased because of a change in the investments made (an increase from £65.8 million to £84.8 million) - which highlighted that the changes equated to the change of how pensions responded to situations.

RESOLVED

To accept and note the Pension Fund's Statement of Accounts (subject to audit) for 2025/26.