Declarations of interest:
None
Witnesses:
Neil Mason, Head of
Pensions
John Harrison, Interim Chief
Investment Officer, Border to Coast Pension Partnership
Steve Turner, Partner,
Mercer
Key
points raised during the discussion:
- The Interim
Chief Investment Officer informed the Committee that the main
element of the report was to show that the process of due diligence
had been carried out to ensure the necessary conditions of
governance have been satisfied.
- There was a
discussion around transition costs to the BCPP UK Equity Alpha Fund
and the Head of Pensions explained these costs would be recouped
after 3 to 4 years and a full analysis of savings and costs would
be undertaken once the Post Transition Report has been
received.
- It was
highlighted that the transition of the Surrey Pension Fund UK
equity to BCPP would take place cautiously to ensure the market
does not set its prices against the Fund.
- The
Committee agreed to carry forward the recommendation to
“approve the delegation of authority to the Director of
Finance, in consultation with the Chairman of the Pension Fund
Committee, to transition the active global equity portion of the
Surrey Pension Fund portfolio to the BCPP national pool when its
design has been established to the satisfaction of the officers and
Fund advisors and assuming that the “necessary
conditions” have been satisfied” to its meeting in
February.
Tony Elias
left the meeting @12.35pm
- The Head of
Pensions was asked by the Committee to replace
‘alternatives’ with ‘sleeves’ to ensure
consistency in the report.
- The
Committee discussed the active global equity portion of the Surrey
Pension Fund portfolio to the BCPP national pool and were advised
by the Interim Chief Investment Officer that funds had the choice
to transition their whole fund allocation into the pool to be
managed fully by the BCPP or chose to remain in
control.
Actions/ further information to be provided:
- Officers to
carry forward the recommendation to “approve the delegation
of authority to the Director of Finance, in consultation with the
Chairman of the Pension Fund Committee, to transition the active
global equity portion of the Surrey Pension Fund portfolio to the
BCPP national pool when its design has been established to the
satisfaction of the officers and Fund advisors and assuming that
the “necessary conditions” have been satisfied to the
Committee’s meeting in February 2019.
Resolved:
The Pension Fund
Committee,
a)
Noted that compliance with the “necessary
conditions” of governance for the BCPP UK Alpha fund was met
on 15 October 2018 and that the transition of the UK equity portion
of the Surrey Pension Fund portfolio to the BCPP has
commenced.
b)
Approved in principle, the transition of the active
global equity portion of the Surrey Pension Fund portfolio to the
BCPP national pool when its design has been established to the
satisfaction of officers and Fund advisors and assuming that the
“necessary conditions” of governance have been
satisfied.
c)
Approved (subject to meeting “necessary
conditions” prior to launch) a 2019 commitment consistent
with the Surrey Pension Fund target asset allocation to Private
Equity within the BCPP Alternatives investment
proposition.