Powys Pension Fund Explores Local and Impact Investing, Approves Responsible Investment Policy

The Pensions and Investment Committee of Powys County Council, in its meeting on September 3, 2025, discussed future investment intentions and approved key policies, as documented in the ‘Minutes of a meeting of the pensions and investment committee held on wednesday, 3 september 2025’.

Responsible Investment Policy Approved

A revised Responsible Investment Policy was presented and approved by the Committee. This policy incorporated feedback from previous knowledge-gathering exercises and was updated to reflect current priorities and strengthen specific areas of focus. The policy is intended to support future engagement and alignment with wider partnerships. (Source: ‘Minutes of a meeting of the pensions and investment committee held on wednesday, 3 september 2025’, page 7-8)

Exploration of Local and Impact Investing

The Committee voted in favor of expressing interest in a potential investment opportunity with positive social and regional impact. This expression of interest is subject to two conditions: wider interest in the opportunity and clarification of the Welsh Government’s position. (Source: ‘Minutes of a meeting of the pensions and investment committee held on wednesday, 3 september 2025’, page 8)

Investment Strategy Review Underway

A report outlining considerations for future investment strategy was presented. The discussion explored several options with varying levels of risk and return, informed by current market conditions and anticipated funding levels. Further modeling and analysis are to be presented at a future meeting before any decisions are made. (Source: ‘Minutes of a meeting of the pensions and investment committee held on wednesday, 3 september 2025’, page 8)

Alternative Currency Hedging Methodology Agreed

The Committee agreed that an alternative methodology for currency hedging should be implemented as and when deemed necessary. This approach is designed to ensure the continued appropriateness and effectiveness of currency hedging in achieving intended outcomes. (Source: ‘Minutes of a meeting of the pensions and investment committee held on wednesday, 3 september 2025’, page 8)

Wales Pension Partnership Progresses Towards IMCO Authorization

The Wales Pension Partnership (WPP) is preparing its Financial Conduct Authority (FCA) submission for Investment Management Company (IMCO) authorization, with a deadline of March 31, 2026. All eight Welsh administering authorities have approved the formation of the WPP IMCO. Powys County Council will remain an equal shareholder in IMCO, retaining full strategic control over its investment strategy. The Committee will continue to set investment strategy locally, with IMCO implementing that strategy. (Source: ‘Minutes of a meeting of the pensions and investment committee held on wednesday, 3 september 2025’, page 6)

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