Agenda and minutes
PDF 171 KBVenue: Mess Conference Room, County Hall, Kingston upon Thames, Surrey KT1 2DN
Contact: Cheryl Hardman Email: cherylh@surreycc.gov.uk
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APOLOGIES FOR ABSENCE AND SUBSTITUTIONS
Minutes: Apologies were received from Alan Young and Tony Elias.
The Chairman welcomed Hazel Watson and Peter Stanyard to their first meetings of the committee and informed the committee that Tony Elias had been reappointed as a borough/district representative.
It was noted that Nick Harrison, Chairman of the Local Pension Board, was in attendance to observe proceedings.
The Chairman also informed the committee that Council had noted that the Surrey Pension Fund Board would henceforth be known as the Surrey Pension Fund Committee at its meeting on 14 July 2015 and would formally ratify the change at its next meeting on 13 October 2015. |
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MINUTES OF THE PREVIOUS MEETING: 22 May 2015
To agree the minutes as a true record of the meeting. Minutes: The Minutes were approved as an accurate record of the meeting. |
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DECLARATIONS OF INTEREST
To receive any declarations of disclosable pecuniary interests from Members in respect of any item to be considered at the meeting.
Notes: · In line with the Relevant Authorities (Disclosable Pecuniary Interests) Regulations 2012, declarations may relate to the interest of the member, or the member’s spouse or civil partner, or a person with whom the member is living as husband or wife, or a person with whom the member is living as if they were civil partners and the member is aware they have the interest. · Members need only disclose interests not currently listed on the Register of Disclosable Pecuniary Interests. · Members must notify the Monitoring Officer of any interests disclosed at the meeting so they may be added to the Register. · Members are reminded that they must not participate in any item where they have a disclosable pecuniary interest.
Minutes: There were none. |
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QUESTIONS AND PETITIONS
To receive any questions or petitions.
Notes: 1. The deadline for Member’s questions is 12.00pm four working days before the meeting (17 July 2015). 2. The deadline for public questions is seven days before the meeting (16 July 2015). 3. The deadline for petitions was 14 days before the meeting, and no petitions have been received.
Minutes: There were none. |
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An action tracker is attached, detailing actions from previous meetings. The Board is asked to review progress on the item listed. Additional documents: Minutes: Declarations of interest: None.
Key points raised during the discussion: 1. In relation to A21/14 (synthetic equities training), a training plan would be produced for the next meeting which would indicate when training on synthetic equities will be given. 2. In relation to A5/15 (Chairman one to ones), these had been completed for continuing Members and would be arranged with new Members once they had completed their needs assessment. 3. In relation to A6/15 (deep dive review), this review was underway. The Strategic Finance Manager (Pension Fund and Treasury) provided an update on progress and confirmed that a report would be brought to the next meeting. 4. In relation to A8/15 (questionnaire), the Chairman reminded the committee that the questionnaire concerned an assessment of governance of the Fund and therefore would not be completed by new Members at this time. The Strategic Finance Manager (Pension Fund and Treasury) would chase unreturned questionnaires and report on findings to the next meeting. 5. In relation to A10/15 (Fund of Funds research), officers informed the committee that Mercer had been instructed to undertake the research. The Chairman requested that this be included in a forward plan for the committee.
Actions/Further information to be provided: None.
Resolved: That the action tracker was noted and the committee agreed to remove the completed actions from the tracker.
Next steps: None. |
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CHANCELLOR'S BUDGET: UPDATE
The Chancellor of the Exchequer presented his budget to the House of Commons on 8 July 2015. This paper contains a summary of the implications for the Local Government Pension Scheme (LGPS). Minutes: Declarations of interest: None.
Key points raised during the discussion: 1. The Strategic Finance Manager (Pension Fund and Treasury) introduced the report highlighting that the overall thrust of the Budget for the Local Government Pension Scheme is the requirement for funds to pool investments. 2. Members queried whether a reduction of the cost base for the Surrey Pension Fund would offer any protection against being forced into pooling investments. The Chairman confirmed that it would not and highlighted that the Treasury wanted proposals to meet common criteria for delivering savings to be presented by October 2015. She suggested that the Surrey Pension Fund Committee needed to be proactive in establishing its position. 3. It was clarified that the requirement was to pool investments not administration. 4. The Surrey Pension Fund Advisor outlined three options: ignore; align with existing pooled investments; and create a new vehicle for pooled investments. 5. The Director of Finance explained that the government rationale for pooling investment is to reduce costs while retaining investment performance. 6. It was suggested that at this stage nothing should be ruled out and all options, apart from ignoring the requirement to pool investments, be considered. The report to committee in September should address the three options outlined by the Surrey Pension Fund Advisor, detail experience and lessons learnt by local authorities that have already begun pooling investments, and include information on existing arrangements to deliver pensions administration for other local authorities.
Actions/Further information to be provided: None.
Resolved: That officers develop proposals to meet common criteria for delivering savings for consideration at the next meeting of the Surrey Pension Fund Committee.
Next steps: None.
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EXCLUSION OF THE PUBLIC
Recommendation: That under Section 100(A) of the Local Government Act 1972, the public be excluded from the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information under the relevant paragraphs of Part 1 of Schedule 12A of the Act.
PART TWO Minutes: RESOLVED: That under Section 100(A) of the Local Government Act 1972, the public be excluded from the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information under paragraph 3 of Schedule 12A of the Act. |
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APPOINTMENT PROCESSES: MULTI ASSET CREDIT MANAGERS At its meeting of 22 May 2015, the Pension Fund Committee resolved to meet a short list of multi asset credit managers with the objective of setting up a multi asset credit portfolio. Minutes: Declarations of interest: None.
Key points raised during the discussion: 1. The committee received presentations from and questioned a short list of multi asset credit managers. A summary of the discussions is included as a confidential annex to the Minutes.
Actions/Further information to be provided: None.
Resolved: i. That a Multi-Asset Credit portfolio be established to replace the Fund’s current investment grade credit assets with Legal & General’s passive mandate and by removing the gilt component of the actively managed mandate with Western Asset Management. The value of these assets is approximately £130m, subject to market movements. ii. That Western Asset Management be selected for the Multi-Asset Credit mandate.
Next steps: None.
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PUBLICITY FOR PART TWO ITEMS
To consider whether the items considered under Part 2 of the agenda should be made available to the Press and the public.
Minutes: RESOLVED: That items considered under Part 2 of the agenda should remain confidential and not be made available to the press and public. |
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DATE OF NEXT MEETING
The next meeting of the Surrey Pension Fund Board will be on 18 September 2015. Minutes: The date of the next meeting was NOTED. |