Agenda a Chofnodion

Derbyn datganiadau o fuddiannau personol gan Gynghorwyr, yn unol â gofynion Cod Ymddygiad y Cyngor.

Nodwch:

1.    Mae gofyn i Aelodau ddatgan rhif a phwnc yr agendwm mae eu buddiant yn ymwneud ag ef a mynegi natur y buddiant personol hwnnw; a

2.   Lle bo Aelodau'n ymneilltuo o'r cyfarfod o ganlyniad i ddatgelu buddiant sy'n rhagfarnu, rhaid iddyn nhw roi gwybod i'r Cadeirydd pan fyddan nhw'n gadael.

In accordance with the Council’s Code of Conduct, there were no declarations made pertaining to the agenda.

It was RESOLVED to approve the minutes of the XXXX as an accurate reflection of the meeting.

To receive a presentation from LAPFF on responsible investment and engagement

Derbyn cyflwyniad gan Fforwm Cronfa Bensiynau Llywodraeth Leol ar fuddsoddi cyfrifol ac yDerbyn cyflwyniad gan Fforwm Cronfa Bensiynau Llywodraeth Leol ar fuddsoddi cyfrifol ac ymgysylltu.mgysylltu.

Members of the Committee received Mr K Bray and Ms T Younger who, through the aid of a powerpoint presentation, provided Member with details of the role of the LAPFF incorporating ‘responsible investing, protecting shareholder value.’  Members were provided with an overview of the role and structure of LAPFF, areas of concern with specific reference to environmental, social and governance concerns and the priorities going forward.

Following the presentation Members questioned the LAPFF representatives, querying concerns raised in respect of investing in infrastructure for the creation of jobs, following the covid pandemic.  Members were advised that the pension fund could not invest locally if advice was that investment was better placed internationally.  Reference was made to examples within Greater Manchester with controlled investment locally following independent advice.  The LAPPF representatives commented that there would be a role to play but this needed to be taken forward in context with the fiduciary base of the fund.

Members welcomed the ethical investments and the climate change aspects, with one Member querying the work taken forward with hydrogen cells and renewable resources and also spoke on the electrification of vehicles.  The LAPFF representative spoke of the need to look at sectors rather than specific companies in respect of renewable energy, the engagement with National Grid in respect of hydrogen and the need to survey Members to gauge the areas of investment, commenting on the importance of the return of the survey to ensure investments are beneficial for the membership.

Members spoke of the need to include these areas within the workplan and the importance of collaborative approaches.

LAPFF representatives were queried on the pool relationship between LAPFF and Robeko.  Members were advised that open communication was being undertaken with the Chair of Robeko.

The Chair concluded the Members questions by referencing the concerns with the reporting of carbon omissions by companies and the need for a consistent approach across the board.  The representatives referenced the work of the TCFD taskforce and the future intention for such reporting to be regulated.

Upon conclusion of the item the Chair thanked the representatives for their informative presentation to the meeting.

Bod y cyfarfod yma'n cadw aelodau o'r wasg ac aelodau o'r cyhoedd allan o ystafell y cyfarfod, dan Adran 100A(4) o Ddeddf Llywodraeth Leol (fel y'i diwygiwyd), yn ystod trafod yr agendwm nesaf, ar y sail y byddai'n debygol o olygu datgelu gwybodaeth eithriedig yn ôl diffiniad paragraff 14 o Ran 4 o Atodlen 12A i'r Ddeddf.”

RESOLVED: That the press and public be excluded from the meeting under Section 100A(4) of the Local Government Act (as amended) for the following item of business on the grounds that it involves the likely disclosure of the exempt information as defined in paragraph 14 of Part 4 of the Schedule 12A of the Act

Derbyn cyflwyniad gan y gweithredwr a darparwr atebion rheolwr y gronfa - Partneriaeth Pensiwn Cymru.

Members received Mr A Quinn and R Thornton who provided a PowerPoint presentation in respect of Link Solutions and Russell Investments.

Members RESOLVED to note the contents of the presentation

Members received Mr D Cullen, RCT Pension Board advisor who provided Members with details of the current asset liability review of the Pension Fund.

Following discussions it was RESOLVED:

1.    To note the contents of the asset liability review update; and

2.    To approve the proposed investment strategy.

The *** provided Members with details of the Fund Governance and Strategy Documents which fall within the remit of the Committee as detailed in the terms of reference. Members were referred to section 4.3 of the report which identified the documents and the proposed reporting arrangements to the Committee.

Members welcomed the news that the exit cap charge no longer applied and questioned whether any employees had been affected prior to this amendment.  Officers confirmed that no employee had been impacted upon.

Reference was made to the funding objectives and commented on the need to ensure part of the overall objectives was to comply with the high ESG standards.  Officers confirmed a clear thread of intention to ESG was illustrated throughout all governance documents.

The importance of training of Members was discussed and Officers confirmed the training requirements needed by all Members to assist Members in their role on the Pension Committee.

Following discussions it was RESOLVED to approve the Fund Governance and Strategy Documents and authorise officers to take forward any changes deemed necessary.

The Director of Finance and Digital Services and Service Director – Pensions, Procurement and Transactional Services provided Members with the key issues being addressed as delegated functions, as specified in the Pension Fund Governance Policy Statement.  Members were advised that during the quarter ended 31^st December 2020, the overall value of the Fund increased from £4,040 million to £4,417 million.

Offices further advised members that the rolling 3 year performance of the Fund was 11.1% positive as compared to a benchmark of 7.1%.  For the last quarter (i.e. quarter 4), Baillie Gifford, the traditional equity portfolio, Global Growth high alpha equity portfolio, Global Opportunities high alpha equity portfolio and the UK Credit Fund had outperformed their benchmarks, and CBRE property portfolio underperformed their benchmark.  The BlackRock passive equity portfolio performed in line with benchmark.  Officers advised that Baillie Gifford traditional equity portfolio outperformed their rolling 3 year rolling benchmark achieving a return of 17.7% against a benchmark of 12.8%. 

As previously highlighted by Members, it was confirmed that the position in respect of HM Treasury regulations ‘Exit CAP’ payments that came into force on the 4^th November 2020. It was advised that on the 12^th February 2021, the HM Treasury determined that the Restriction of Public Sector Exits Payments Regulations 2020 should be withdrawn due to the potential for unintended consequences.

The Committee were advised of the recent meeting of the Fund’s Communications Forum and the discussions relating to the anticipated resource challenges on all parties to address the McCloud remedies. 

Data quality and compliance remains a key priority for the Pension Fund and it was added that further to the previous update at Committee, the Fund had been working closely with the applicable Employers yet to implement the I-Connect monthly data transfers. Progress has been made around some of the technical issues, with expectations to finalise in the first quarter of 2021/22. Members of the Committee suggested that a reminder from the Committee should be circulated to focus resources.

Members were also advised that the Member Self-Serve (MSS) continues to be promoted and he Pension Manager also provided an update in respect of the work of the Pension Board confirming that there were no items noted for referral back to Committee. 

The item was concluded with the Service Director – Pensions, Procurement and Transactional Services referencing the LAPFF quarterly engagement report for the period October to December 2020 which was appended to the report.

The Chair thanked all staff involved with the pension fund for their continued work and support with particular reference to the work involved in the recent audit undertaken and it was suggested that further detail was brought forward to a future meeting in respect of the work being taken forward to address the 2 recommendations that had resulted from the audit.

One Member queried how the fund could encourage members to utilise the self service system and during Committee discussions it was discussed that communications from trade unions such as Unison  ...  view the full Cofnodion text for item 33.

The Service Director for Finance and Improvement presented the report to members and referred to Appendix 1 of the report which outlined in detail the risk register.  Members were advised that the Risk Register is reviewed in detail and operationally by the Pension Fund Working Group, where recommended updates are made to reflect changes in risks.  This is then presented to the quarterly meetings of the Investment and Administration Advisory Panel for further review, challenge and agreement.

Following a detailed account of the risk register the Committee RESOLVED to note the arrangements in place for the management of risk within the fund.

The Senior Accountant for Pensions and Treasury Management provided Members with an update on the work and progress with regard to the Wales Pension Partnership (WPP) and Joint Governance Committee (JGC). 

Members were advised that the last meeting of the JGC was held on the 10^th December 2020 and concentrated on work surrounding:

·       WPP Sub funds – All five Fixed Income sub fund have now been launched.  Work continues with the next tranches of sub funds. 

·       WPP Voting Policy

·       WPP Training Policy

·       The tender evaluation process for the legal advisor contract was completed

Other key areas:

·       A Fixed Income press release was issued

·       The WPP 2019/20 Annual Report has been published

·       Training – Training sessions are continuing to be arranged in line with the 2020/2021 training plan. The training sessions have been held virtually and have been extended to include Pension Committee and Board members, as well as JGC members and officers.

·       The Website continues to be updated with approved policies, press releases and details of fub fund launches

·       Robeco, the WPP voting and engagement provider, is now actively voting WPP shares using its standard voting template.  The WPP will be bespoking its own voting policy over the coming months. 

The Senior Accountant for Pensions and Treasury Management referenced the forth coming meeting of the JGC and it was suggested that WPP Governance Manual be circulated to the Committee once made available.

A member of the Committee queried the private market funds and the Senior Accountant for Pensions and Treasury Management referenced the Sub funds infrastructure, property, private market debt and impact bucket.

Members RESOLVED to note the content of the report.