Agenda item

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

Submitted, for information, a report by the Investment Manager providing details of the Pension Fund's financial activities during the year which ended 31 March 2026

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 draft accounts were subject to audit by Audit Wales with a view to submitting the final version to the Committee in October 2026. It was noted that this had been a busy year for the Fund as it continued to invest more widely with the Wales Pension Partnership (PPC).

She drew attention to the Fund Account, noting that there were slight variations in the contributions and benefits. It was reiterated that management expenses had reduced when introducing different types of investments into the portfolio and reducing investments with the Partners group, which historically had higher management fees. It was reiterated that the investment income had increased and the Fund had received regular income from the new investments such as infrastructure and private equity within WPP. It was noted that the market value of the Fund had increased by approximately £280 million which was in line with the annual gradual increase.

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

The members thanked the officer for the report.

Observations arising from the ensuing discussion:

·        The financial position remained strong

·        Thanks to the team for their conscientious work - it was a very healthy position

·        That the work of responding to the demand increased each year, and the team completed this effectively and in a timely manner

In response to a question about the background of Note 7: Contributions Received and a reference to 'Other' (exit credit transactions) £5,129, it was noted that the amount was a total transferred following the winding[EW1] -up of the GwE education service. It was reported that the six Authorities across North Wales had received a sum relating to the amount remaining, implemented in accordance with the additional credit policy.

In response to a question about Note 15b Reconciliation of Fair Value Measurements Within Level 3 (Total Market Value 31-03-26 = £636,228) and, if the value of the investments was an estimate, how could there be assurance around the value, it was noted that properties were valued by receiving prices from the Investment Manager, and the situation and any movements were monitored on a daily basis. It was reiterated that due to the high percentage in equities, they intended to reduce investments in equity to less vulnerable areas – being more stable areas that would face less risk in the open market.

In relation to Note 21 – Current Liabilities and what had led to the change between £4,012,000 in March 2025 and £8,387,000 in March 2026, it was again noted that this was a payment relating to GwE – one that had not been paid until the year it was due - GwE had ended on 31 May 2025.

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