Venue: Ashcombe Suite, County Hall, Penrhyn Road, Kingston upon Thames, Surrey, KT1 2DN
Contact: Vicky Hibbert
No. | Item |
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APOLOGIES FOR ABSENCE AND SUBSTITUTIONS
Minutes: Apologies were received from Philip Walker (Employee representative). |
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MINUTES OF THE PREVIOUS MEETING: 16 NOVEMBER 2018 PDF 110 KB
To agree the minutes as a true record of the meeting. Minutes: The Minutes were approved as an accurate record of the previous meeting. |
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DECLARATIONS OF INTEREST
All Members present are required to declare, at this point in the meeting or as soon as possible thereafter (i) Any disclosable pecuniary interests and / or (ii) Other interests arising under the Code of Conduct in respect of any item(s) of business being considered at this meeting NOTES: · Members are reminded that they must not participate in any item where they have a disclosable pecuniary interest · As well as an interest of the Member, this includes any interest, of which the Member is aware, that relates to the Member’s spouse or civil partner (or any person with whom the Member is living as a spouse or civil partner) · Members with a significant personal interest may participate in the discussion and vote on that matter unless that interest could be reasonably regarded as prejudicial. Minutes: There were none. |
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QUESTIONS AND PETITIONS PDF 97 KB
To receive any questions or petitions.
Notes: 1. The deadline for Member’s questions is 12.00pm four working days before the meeting (Monday 4 February 2018). 2. The deadline for public questions is seven days before the meeting (Friday 1 February). 3. The deadline for petitions was 14 days before the meeting, and no petitions have been received.
Minutes: Six questions were received from members of the public. Responses to these can be found as an annex to these minutes.
Supplementary questions were asked from three members of the public and it was agreed that a response to the supplementary question from Pat Smith would be provided outside of the meeting.
It was agreed that responses to submitted questions would be provided in advance of public meetings going forward. |
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PENSION FUND COMMITTEE FORWARD PLAN PDF 50 KB
Purpose of the report: The Committee to review its forward work programme. Minutes: Resolved:
The Committee reviewed its Forward Plan.
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COMPANY ENGAGEMENT AND VOTING PDF 144 KB
Purpose of the report: This report is a summary of various Environmental Social & Governance (ESG) issues that the LAPFF, Robeco and Surrey Pension Fund have been involved in, for the attention of the Pension Fund Committee. Additional documents: Minutes: Declarations of interest:
None
Witnesses:
Jane Firth, Head of Responsible Investment, Border to Coast Pension Partnership Neil Mason, Head of Pensions
Key points raised during the discussion:
Actions/ further information to be provided:
The Board to receive further detail on share voting and resolutions made in future reports to the Committee.
Resolved:
1. That the main findings of the report; the outcomes achieved for quarter ending 30 September 2018 by Robeco and LAPFF, by engaging with multinational companies on various Environmental, Social and Governance Issues (ESG) were noted by the Committee. 2. That the findings from Surrey Pension Fund’s share voting process for the quarter ending 31 December 2018 were noted.
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Purpose of the report: This report is a summary of administration and governance issues reviewed by the Local Pension Board at its meeting of 17 January 2019 that need to be brought to the attention of the Pension Fund Committee. Additional documents: Minutes: Declarations of interest:
None
Witnesses:
Graham Ellwood, Vice-Chairman, Local Pension Board Neil Mason, Head of Pensions
Key points raised during the discussion:
Actions/ further information to be provided:
A report with further detail on the identified issues be presented to the next meeting of the Surrey Pension Fund Committee in June 2019.
Resolved:
That the Pension Fund Committee;
1. Noted the report and particularly issues with pensions administration. 2. Approved the following changes to the Fund risk register: · Amendments to the following risks, chiefly to reflect updates in regards to Border to Coast: · 1-2, 4-8, 11, 13-15, 17-20, 23-24, 27. The addition of the following risks:
· Transition of assets to BCPP be included as risk number 29, with a total risk of 40 (Red) and net risk of 10 (Green). · The HM Treasury and Scheme Advisory Board cost management process has an implied increase in employer contributions be included as risk number 30, with a total risk of 28 (Amber) and net risk of 7 (Green). · Impact of the Pension Services Manager leaving the council be included as risk of 31, with total inherent risk of 21 (Amber) and Residual risk of 7 (Green). · Failure to deliver accurate and effective pension administration be included as risk of 32, with total inherent risk of 36 (Red) and Residual risk of 18 (Amber). 3. Concluded that a detailed report from the Local Pension Board be presented at the next meeting of the Surrey Pension Fund Committee in June 2019. |
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Purpose of report: Surrey Pension Fund recognises the importance of providing appropriate training to both committee members and officers in relation to the operation of the Pension Fund. This report introduces the pension fund training policy as set out in Annex 1. Additional documents: Minutes: Declarations of interest:
None
Witnesses:
Neil Mason, Head of Pensions
Key points raised during the discussion:
1. Members of the Committee welcomed the Training Policy and requested that details of seminars taking place should be circulated to the Committee and should also be fed into the training plan.
Action/ further information to be provided:
None.
Resolved:
That the Pension Fund Committee:
1. Approved the training policy and agreed that all members should prioritise attendance at training events wherever practicable. 2. That training is reviewed on an annual basis.
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Purpose of the report: A cash-flow analysis allows the Fund to ascertain a projection as to when benefit payments may exceed income. This information can influence both the investment and funding strategy.
Minutes: Declarations of interest:
None
Witnesses:
Neil Mason, Head of Pensions
Key points raised during the discussion:
Actions/ further information to be provided:
None.
Resolved:
The Pension Fund Committee noted the cash-flow position for quarters two and three which confirmed that no further action was required and no changes to the Investment Strategy would be required. |
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INVESTMENT STRATEGY STATEMENT PDF 79 KB
Purpose of report: The Pension Fund is required to publish its investment Strategy Statement (ISS) as a result of the investment regulations. It is the fiduciary duty and a statutory requirement of the Pension Fund Committee that it should regularly review its ISS and approve any changes where appropriate. Additional documents: Minutes: Declarations of interest:
None
Witnesses:
Neil Mason, Head of Pensions Steve Turner, Partner, Mercer
Key points raised during the discussion:
1. Committee Members noted the changes to be made to the Investment Strategy Statement and queried whether the format of this could be reviewed to avoid this having to be approved as frequently as it was currently.
2. It was confirmed that the Strategy must be approved annually by the Committee however the format of this could be reviewed so that it would be a broad statement of the areas that the Surrey Pension Fund invests in. It was agreed that this would be reviewed going forward.
Further action/ information to be provided:
That the format and content of the Investment Strategy Statement be reviewed.
Resolved:
That the Pension Fund Committee approved the following changes to the ISS that have been made following the Pension Fund Committee meeting of 16 November 2018: 1. The changes to job titles and frequency of Local Board meetings. 2. The change in the Environmental, Social and Governance (ESG) policy to support and, where relevant, comply with the Border to Coast Pension Partnership (BCPP) Responsible Investment Policy. The BCPP Responsible Investment Policy was revised in November 2018 and is reproduced as Appendix C in the amended ISS. 3. The change in the Policy of the exercise of rights (including voting rights) attaching to investments to support the BCPP Corporate Governance and Voting Guidelines. The BCPP Corporate Governance and Voting Guidelines were revised in November 2018 and are reproduced as Appendix D in the amended ISS. 4. Addition of Glennmont Clean Energy Fund Europe III to the list of Private Equity Managers. 5. Inclusion of UK Base Rate as benchmark for Ruffer, and inclusion of Fund’s target return of +3% (gross of fees) over 3 year rolling periods against UK Base Rate.
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INVESTMENT MANAGER ISSUES AND PERFORMANCE ASSET/LIABILITIES UPDATE PDF 807 KB
Purpose of report:This report is a summary of all manager issues that need to be brought to the attention of the Pension Fund Committee, as well as an update on investment performance and the values of assets and liabilities.
Additional documents: Minutes: Declarations of interest:
None
Witnesses:
Neil Mason, Head of Pensions Steve Turner, Partner, Mercer Sam Wreyford, Mercer Anthony Fletcher, Independent Advisor
Key points raised during the discussion:
Actions/ further information to be provided:
None.
Resolved:
That the funding level as at 31 December 2018 was 93.3%. That the Fund’s investment performance for the quarter ending 31 December 2018 was -3.4%.
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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. 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 the relevant paragraphs of Part 1 of Schedule 12A of the Act.
PART TWO – IN PRIVATE |
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INVESTMENT MANAGER ISSUES AND PERFORMANCE ASSET/LIABILITIES UPDATE
Part 2 annexes relating to item 11. Minutes: Declarations of interest:
None.
Witnesses:
Neil Mason, Head of Pensions Steve Turner, Partner, Mercer Sam Wreyford, Mercer Anthony Fletcher, Independent Advisor Daniel Booth, Chief Investment Officer, Border to Coast Pension Partnership
Key points raised during the discussion:
1. The Committee were provided with an update on the performance of diversified growth funds and a discussion around whether a move out of this area would be supported took place.
2. The Independent Advisor provided an update on the performance of individual investment managers and Members were disappointed to note the performance of Aviva.
3. It was noted that the recent transfer to Border to Coast Pension Partnership (BCPP) had gone well during a difficult time and Committee Members were informed that a range of alternative investment options were being created by Border to Coast that the Surrey Pension Fund would be able to invest in going forward.
4. The equity protection strategy was discussed and it was confirmed that this would be formally reviewed at the Pension Fund Committee meeting in September 2019.
Further action/ information to be provided:
None.
Resolved:
That the funding level as at 31 December 2018 was 93.3% and that the Fund’s investment performance for the quarter ending 31 December 2018 was -3.4%.
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NATIONAL POOLING UPDATE This is a part 2 report. Minutes: Declarations of interest:
None
Witnesses:
Neil Mason, Head of Pensions Daniel Booth, Chief Investment Officer, Border to Coast Pension Partnership Steve Turner, Partner, Mercer Sam Wreyford, Mercer Anthony Fletcher, Independent Advisor
Key points raised during the discussion:
Actions/ further information to be provided:
None.
Resolved:
The Pension Fund Committee noted the pooling update report. |
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PUBLICITY OF PART 2 ITEMS
To consider whether the item considered under Part 2 of the agenda should be made available to the press and public. Minutes: The Committee agreed that the Part 2 items remain confidential and restricted from the public. It was further agreed that future reporting should avoid the use of sensitive information where possible. |
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DATE OF NEXT MEETING
The next meeting of the Surrey Pension Fund Committee will be on Friday 7 June 2019. Minutes: The Committee noted that the next public meeting is due to take place on 7 June 2019. |