Agenda and decisions

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Items
No. Item

1.

Apologies for Absence and Temporary Appointments

Decision:

Apologies were received from Cllr Lawrie Stratford, Cllr Mark Lygo and Anya Greig.

 

Members of the Committee and the officers offered their sincere condolences to the family of Jean Fooks on hearing of her recent death. The Committee wished to have recorded its thanks for the 20 years excellent service she gave whilst serving on the Committee.

2.

Declarations of Interest - see guidance note

Decision:

There were no declarations of interest.

3.

Minutes pdf icon PDF 206 KB

To approve the minutes of the meeting held on 8 June 2018 (PF3) and to receive information arising from them.

Decision:

Approved and signed as a correct record.

 

No Matters Arising.

4.

Petitions and Public Address

Decision:

No requests received.

5.

Minutes of the Local Pension Board and Brunel Oversight Board pdf icon PDF 160 KB

10:20

 

A copy of the unconfirmed Minutes of the Local Pension Board, which met on 26 October 2018, is attached for information only (PF5).

 

Also attached is a copy of the latest Minutes of the Brunel Oversight Board, again for information only (PF5).

 

 

Additional documents:

Decision:

Noted.

 

Noted.

6.

Report by the Independent Chairman of the Local Pension Board pdf icon PDF 126 KB

10:25

 

Attached at PF6 is the report by the Independent Chairman of the Local Pension Board. It invites the Committee to respond to the key issues raised by the Pension Board at its most recent meeting on 26 October 2018.

 

 

The Committee is RECOMMENDED to note the report of the Board and also to:

 

(a)  note the wish of the Board to consider the Improvement Plan at their subsequent meetings, in the context that it is the responsibility of this Committee to drive the plan;

(b)  note the Board’s continued concern over the level of vacancies and its strong support for recruiting to fill all positions;

(c)  consider its request to be invited to consider the next version of the Investment Strategy Statement before it is approved by this Committee; and

(d)  consider its request that the Committee reflects on how it will monitor the performance of the Brunel portfolios in the context of net performance against benchmarks and fee levels.

 

 

Decision:

(a)  noted;

(b)  noted;

(c)  inform the Board that it would be invited to consider the next version of the Investment Strategy Statement prior to its approval by the Committee as a matter of course; and

(d)  note the Board’s request and to consider it further when reviewing the new investment performance reports from Brunel.

7.

Administration Report pdf icon PDF 259 KB

10:35

 

The report (PF7) updates the Committee on the latest position in relation to administration issues.

 

The Committee is RECOMMENDED to:

 

(a)  note the report;

(b)  provide any feedback on the draft Improvement Plan and confirm the arrangements for monitoring the delivery of the Plan at future meetings; and

(c)  agree the proposed changes in the Scheme of Delegation as outlined in paragraph 29.

 

Additional documents:

Decision:

(a)  noted, including the letter dated 28 November 2018 from the Scheme Advisory Board to the Pensions Regulator as included on the Addenda;

(b)  agree that all future correspondence with the Pension Regulator should be circulated to the Committee and Board

(c)  to confirm the arrangements for monitoring the delivery of the draft Improvement Plan at future meetings, with the addition of the Breaches Log data; and

(d)  agree the proposed changes to the Scheme of Delegation, as outlined in paragraph 29 of the report.

8.

Review of the Annual Business Plan 2018/19 pdf icon PDF 161 KB

11:00

 

The report (PF8) reviews progress to date on the key objectives, budget and training programme set out in the Business Plan for the forthcoming financial year.

 

The Committee is RECOMMENDED to:

 

(a)  note the progress against the key service priorities and budget included within the Business Plan 2018/19; and

(b)  agree any further subjects to be included in future training plans.

 

Additional documents:

Decision:

(a)  noted; and

(b)  no further subjects to be added in future training plans at this time.

9.

Risk Register pdf icon PDF 121 KB

11:20

 

The latest position on the Fund’s Risk Register is before the Committee (PF9), including any new risks identified since the report to the last meeting.

 

The Committee is RECOMMENDED to note the current risk register and determine any changes it wishes to see made.

Additional documents:

Decision:

Noted.

10.

Project Plan for the Implementation of i-Connect pdf icon PDF 298 KB

11:30

 

A key element of the Improvement Plan is the implementation of i-Connect which will automate the transfer of key scheme data between scheme employers and the administering authority. The report (PF10) sets out the business case for the project and the key steps within the project plan.

 

The Committee is RECOMMENDED to:

 

(a)  note the project plan; and

(b)  monitor progress against the plan as part of the quarterly updates on the overall Data Improvement Plan.

Decision:

(a)  noted and to thank Julie Skelly, Team Leader, Pensions for her presentation;

(b)  to agree to the monitoring of progress of the Plan as part of the quarterly updates on the overall Data Improvement Plan; and

(c)  to ensure the Pensions Team is aware of this Committee’s support for the work that they are undertaking on the Committee’s behalf and to request that Team Leaders attend the Committee on a regular basis to give progress reports.

 

11.

Overview of Past and Current Investment Position pdf icon PDF 77 KB

11:50

 

Tables 1 to 4 are compiled from the custodian's records. The custodian is the Pension Fund's prime record keeper. He accrues for dividends and recoverable overseas tax within his valuation figures and may also use different exchange rates and pricing sources compared with the fund managers. The custodian also treats dividend scrip issues as purchases which the fund managers may not do. This may mean that there are minor differences between the tabled figures and those supplied by the managers.

 

The Independent Financial Adviser will review the investment activity during the past quarter and present an overview of the Fund’s position as at 30 September 2018 using the following tables:

 

Table 1

provides a consolidated valuation of the Pension Fund at 0 September 2018

Table 2

shows net investments/disinvestments during the quarter

Table 3

provides investment performance for the consolidated Pension Fund for the quarter ended 30 September 2018

Table 4

provide details of the Pension Fund’s top holdings

 

In addition to the above tables, the performance of the Fund Manager has been produced graphically as follows:

 

Graph 1 – Market value of the Fund over the last three years

 

The Committee is RECOMMENDED to receive the tables and graphs, and that the information contained in them be borne in mind, insofar as they relate to items 15, 16, 17, and 18 on the agenda.

Decision:

Received.

12.

EXEMPT ITEMS

The Committee is RECOMMENDED that the public be excluded for the duration of items 13, 14, 15, 16, 17, 18 and 19 in the Agenda since it is likely that if they were present during those items there would be disclosure of exempt information as defined in Part I of Schedule 12A to the Local Government Act 1972 (as amended) and specified in relation to the respective items in the Agenda and since it is considered that, in all the circumstances of each case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

 

THE REPORTS RELATING TO THE EXEMPT ITEMS HAVE NOT BEEN MADE PUBLIC AND SHOULD BE REGARDED AS STRICTLY PRIVATE TO MEMBERS AND OFFICERS ENTITLED TO RECEIVE THEM.

 

NOTE: In the case of item 9, there are no reports circulated with the Agenda. Any exempt information will be reported orally.

Decision:

Agreed.

13.

Exempt Minutes

12:00

 

To approve the exempt Minute of the Pension Fund Committee meeting held on 14 September 2018 (PF13).

 

To note the exempt Minute of the Local Pension Board meeting held on 26 October 2018 (PF13).

 

The public should be excluded during this item because its discussion in public would be likely to lead to the disclosure to members of the public present of information in the following prescribed category:

 

3.         Information relating to the financial or business affairs of any particular person (including the authority holding that information) and since it is considered that, in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information, in that such disclosure would distort the proper process of free negotiations with another party.

 

Additional documents:

Decision:

Approved and signed as a correct report.

 

Noted.

14.

Overview and Outlook for Investment Markets pdf icon PDF 294 KB

12:00

 

The attached report of the Independent Financial Adviser (PF14) sets out an overview of the current and future investment scene and market developments across various regions and sectors. It provides the context for the considerations of the reports of the fund managers. The report itself does not contain exempt information and is available to the public. The Independent Financial Adviser will also report orally and any information reported orally will be exempt information.

 

The public should be excluded during this item because its discussion in public would be likely to lead to the disclosure to members of the public present of information in the following prescribed category:

 

3.         Information relating to the financial or business affairs of any particular person (including the authority holding that information) and since it is considered that, in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information, in that such disclosure would prejudice the trading activities of the fund managers involved and would prejudice the position of the authority's investments in funding the Pension Fund.

 

The Committee is RECOMMENDED to receive the report, tables and graphs, to receive the oral report, to consider any further action arising on them and to bear the Independent Financial Adviser’s conclusions in mind when considering the Fund Managers’ reports.

Decision:

Received.

15.

Partners Group

12:10

 

(1)          The Independent Financial Adviser will report orally on the performance and strategy of Partners Group drawing on the tables at Agenda Items 11 and 14.

 

(2)          The representatives (Serge Jovelle and TBC) of the Fund Manager will:

 

(a)       report and review the present investments of their part of the Fund and their strategy against the background of the current investment scene for the period which ended on 30 September 2018;

 

(b)       give their views on the future investment scene.

 

In support of the above is their report for the period to 30 September 2018.

 

At the end of the presentation, members are invited to question and comment and the Fund Managers to respond.

 

The public should be excluded during this item because its discussion in public would be likely to lead to the disclosure to members of the public present of information in the following prescribed category:

 

3.         Information relating to the financial or business affairs of any particular person (including the authority holding that information) and since it is considered that, in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information, in that such disclosure would prejudice the trading activities of the fund managers involved and would prejudice the position of the authority's investments in funding the Pension Fund.

 

The Committee is RECOMMENDED to note the main issues arising from the presentation and to take any necessary action, if required.

Decision:

Noted.

16.

Annual Review of Private Equity

12:45

 

The Independent Financial Adviser will present his annual review of the Fund’s Private Equity investments (PF16).

 

The public should be excluded during this item because its discussion in public would be likely to lead to the disclosure to members of the public present of information in the following prescribed category:

 

3.         Information relating to the financial or business affairs of any particular person (including the authority holding that information) and since it is considered that, in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information, in that such disclosure would prejudice the trading activities of the fund managers involved and would prejudice the position of the authority's investments in funding the Pension Fund.

 

The Committee is RECOMMENDED to agree the recommendation as set out in the report PF16.

 

Decision:

Agree the recommendation as set out in the exempt report PF16.

17.

Report of Main Issues arising from Reports of the Fund Managers not represented at this meeting

12:55

 

To consider a report (PF17) from the Independent Financial Adviser on the main issues arising from the reports from UBS, Wellington and Adams Street Partners in conjunction with information contained in the tables (Agenda Item 11).

 

The public should be excluded during this item because its discussion in public would be likely to lead to the disclosure to members of the public present of information in the following prescribed category:

 

3.         Information relating to the financial or business affairs of any particular person (including the authority holding that information) and since it is considered that, in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information, in that such disclosure would prejudice the trading activities of the fund managers involved and would prejudice the position of the authority's investments in funding the Pension Fund.

 

The Committee is RECOMMENDED to note the main issues arising from the reports and to take any necessary action, if required.

Decision:

Noted

18.

Summary by the Independent Financial Adviser

13:00

 

The Independent Financial Adviser will, if necessary, summarise any issues arising from the previous discussions.

 

The public should be excluded during this item because its discussion in public would be likely to lead to the disclosure to members of the public present of information in the following prescribed category:

 

3.         Information relating to the financial or business affairs of any particular person (including the authority holding that information) and since it is considered that, in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information, in that such disclosure would prejudice the trading activities of the fund managers involved and would prejudice the position of the authority's investments in funding the Pension Fund. 

Decision:

No summary necessary.

19.

Proposed contract extension for the Independent Financial Adviser

13:05

 

The current contract for the Independent Financial Adviser to the Committee expires in February 2019.  Given all the changes underway during the transition for Fund Manager responsibility to Brunel, it is unclear what the long-term requirements are for on-going independent financial advice.  However, it is clear that in the short-term there is a clear requirement for on-going support, based on a clear knowledge of the existing arrangements.  This report (PF19) therefore proposes an extension of the current contractual arrangements through an exemption to the normal procurement rules.

 

The public should be excluded during this item because its discussion in public would be likely to lead to the disclosure to members of the public present of information in the following prescribed category:

 

3.         Information relating to the financial or business affairs of any particular person (including the authority holding that information) and since it is considered that, in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

 

The Committee is RECOMMENDED to agree the recommendation as set down in the report PF19.

 

 

 

Decision:

Agreed – and to thank Peter Davies for all his good work.

20.

Fund Manager Monitoring Arrangements pdf icon PDF 125 KB

13:15

 

The report (PF20) proposes the arrangements for Fund Manager Monitoring for the 2019/20 financial year.

 

The Committee is RECOMMENDED to approve the Fund Manager monitoring arrangements as set out in the report.

Decision:

Approved subject to the attendance of Brunel representatives to this Committee on the basis of twice a year rather than once.

21.

Corporate Governance and Socially Responsible Investment

13:15

 

This item provides the opportunity to raise any issues concerning Corporate Governance and Socially Responsible Investment which need to be brought to the attention of the Committee.

Decision:

No issues raised.

22.

Annual Pension Forum

13:20

 

To report any matters arising in relation to the next Forum to be held in January 2019.

Decision:

The next Pension Forum to take place on 11 January 2019 at Unipart.