Investments

It’s the Warwickshire Pension Fund’s role to invest the contributions the members and employers pay in, to help fund the pensions that are paid now and those that will be paid in the future.

The role of the Staff and Pensions Committee

The Staff and Pensions Committee has overall responsibility for functions relating to local government pensions and it established the Pension Fund Investment Sub-Committee to oversee the Pension Fund’s investments and the management of the Fund.

Staff and Pensions Committee members

Councillor Andy Jenns (Chair), Councillor Bill Gifford (Vice Chair), Councillor Christopher Kettle, Councillor Brian Hammersley, Councillor Sarah Millar, Councillor Mandy Tromans

The role of the Pension Fund Investment Sub-Committee

The Sub-Committee oversees the general framework within which the Fund is managed and sets the investment policy. The Sub-Committee also monitors the work of the fund managers and the investment performance for which they are responsible.

Pension Fund Investment Sub-Committee members

Councillor Christopher Kettle (Chair), Councillor Bill Gifford (Vice Chair), Councillor Brian Hammersley, Councillor Sarah Millar, Councillor Mandy Tromans

Types of investment

There are lots of types of investment. You can group investments under different headings known as asset classes.

Warwickshire Pension Fund invests in the following asset classes:

• public equity
• bonds
• cash
• property
• alternative assets

What is public equity?

Businesses have several options for raising capital and attracting investors. Equity allows a company to give investors a share of the business. The investor then earns returns as the business grows. Most publicly traded stocks are available and easily traded daily through public market exchanges, such as the London Stock Exchange.

What are bonds?

A bond gives a fixed rate of return. A bond could be thought of as an ‘I owe you’ between the lender and borrower that include the details of the loan and its payments. Bonds are used by companies and governments to finance projects and operations.

What are alternative assets?

An alternative investment is a financial asset that does not fall into one of the conventional investment categories such as stocks, bonds and cash. Types of alternative investment include private equity and real estate.

Why does Warwickshire Pension Fund need to invest?

The returns that we get on our investments help to pay towards the cost of pensions. If we didn’t invest, contributors and employers would have to more than twice as much pay as they do now, in order to get the same level of pension benefits. Investing also has the additional benefit of being good for the local and wider economy.