Decision details


Decision status: Recommendations Approved (subject to call-in)

Is Key decision?: No

Is subject to call in?: No



Lloyd Whitworth, Head of Investment & Stewardship

Steve Scott, Hymans

Tom Lewis, Head of Service Delivery


Key points raised during the discussion:


1.    The Head of Investment & Stewardship presented highlights of the report which included: -

  • That the funding ratio was up to 140% but expressed caution with this figure and explained the effect of inflation on assets and liabilities.
  • There was an underperformance of the fund versus the benchmark, with the impact of higher interest rates and its pressure on the economy and on the performance of the portfolio.
  • The BCPP Listed Alternatives Fund continued to disappoint this quarter.
  • The BCCP Global Alpha Fund, one of our largest single mandates, performed better.
  • Emerging markets exposure, previously in a passive fund within LGIM, has been switched into an active fund managed by BCCP. £267M was switched into Border to Coast Fund in July.

2.    A Member asked what the Funding level ratio would be if the discount rate of the 2022 valuation was used?  The Head of Investment & Stewardship responded that using this discount rate the figure would be much closer to 100%.  Hymans gave a detailed explanation of changes that have occurred since the 2022 valuation and stated that if the same discount rate were used today, then the funding level would actually be lower than that reported at the 2022 valuation, due to lower asset values.

3.    A Member asked to see a breakdown in future reports regarding economic sector exposure. The Head of Investment & Stewardship stated that sector data was available for each manager but that there would be a problem combining for the whole fund because of the different mandates and different benchmarks but would look at what it was practicable.

4.    A Member asked about the negative cash flow to which Hymans responded with further information and an analysis of interest rates.

5.    A Member mentioned that there hadn't been any new joiners from Surrey County Council recorded since June because of issues with Surrey County Council payroll and wondered what the implications were for those employees. Were they missing out on pension entitlements and benefits? The Head of Service Delivery explained the issues being experienced and the work being undertaken with Surrey payroll to resolve the matter. He assured the committee that all pension entitlements would be properly captured in the records.


Actions/ further information to be provided:

Head of Investment & Stewardship to consider how best to provide economic sector exposure information.



That the main findings of the report in relation to the Fund’s valuation and funding level, performance returns and asset allocation be noted.


Publication date: 31/01/2024

Date of decision: 15/12/2023

Decided at meeting: 15/12/2023 - Surrey Pension Fund Committee

Accompanying Documents: