• Agenda and minutes
  • Agenda and minutes

    Contact: Sarah Daniel - Senior Democratic Services Officer  07385 086169

    Items
    No. Item

    1.

    Declaration of Interest

    To receive disclosures of personal interest from Members in accordance with the Code of Conduct

     

    Note:

     

    1.     Members are requested to identify the item number and subject matter that their interest relates to and signify the nature of the personal interest: and

    2.   Where Members withdraw from a meeting as a consequence of the disclosure of a prejudicial interest they must notify the Chairman when they leave.

    Minutes:

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

    2.

    Minutes pdf icon PDF 113 KB

    To receive the minutes of the previous meeting of the Pensions Fund Committee held on 22.03.2021

    Minutes:

    It was RESOLVED to approve the minutes of the Pension Fund Committee held on the 22 March 2021 as an accurate reflection of the meeting.

    3.

    Work Programme pdf icon PDF 83 KB

    Minutes:

    The Director Finance and Digital Services presented the report to members which provided details of the Committees work programme for the 2021 – 22 Municipal Year.  Members were informed of the items scheduled for the year and were reminded that the Work Programme remains flexible to adapt to changing priorities and business requirements

     

    RESOLVED: Members agreed the work programme for the 21-22 Municipal Year

    4.

    Delegated Function Report pdf icon PDF 113 KB

    Additional documents:

    Minutes:

    The Director Finance and Digital Services  presented the report to members which set out the key issues being addressed as delegated functions, as specified in the Pension Fund Governance Policy Statement. He referred members to the performance of the fund detailed at the table in 4.3 which had increased by 3.7%.  He added that Baillie Gifford traditional equity portfolio and the UK Credit portfolio underperformed their benchmarks, with the BlackRock Passive Gilt portfolio returning benchmark performance

     

    He continued that Baillie Gifford traditional equity portfolio (global core) outperformed their rolling 3-year benchmark achieving a return of 19.0% against a benchmark of 8.1% and achieved a return of 63.7% over the last year, 34.1% ahead of their benchmark.

     

    The Director Finance and Digital Services added that the Pension Fund participates in the Pensions and Investment Research Consultants Limited (PIRC) annual Local Authority fund Statistical Universe Review.  At the end of March 2021, the Universe comprised of 64 funds with a combined value of £230 billion.  He referred members to the summary of the Fund’s performance and its ranking in the table at 4.5 of the report.

     

    The Chairperson congratulated all the officers for all their hard work and commitment 

     

    The Director Finance and Digital Services reminded members that at their March Committee they agreed a three step approach to reduce equity and exposure and to begin to step up infrastructure exposure which was now being explored.  

     

    He further added that the Pension Fund Draft Statement of Accounts for 2020/21 had been certified with the external audit process to follow.

     

    A member stated the performance had been exceptional post Brexit and the fund was doing very well.  He asked if the economy post Brexit is likely to drive up pensions?

     

    The Director Finance and Digital Services advised that most pensions are Global so Brexit would have minimal impact.  He added that the actuary would remind us to be cautious once we have seen exceptional performance, as it is rare the exceptional performance will continue over the longer term.

     

    The Service Director Pensions, Procurement and Transactional Services continued through the report and advised that an Internal Audit review of the Pensions Service was concluded in March 2021, the scope covered two key reassurance aspects:

     

    ·      The Fund’s compliance against the findings contained on the ‘Pension Regulators Engagement Report’; and 

    ·      A review of the appropriateness of our remote working processes introduced last year. 

    The overall control environment was considered effective, with two minor recommendations made in relation to remote working. Full details of the findings were attached in the appendix to the report. 

     

    The Service Director Pensions, Procurement and Transactional Services reminded members that at the previous Committee, the Ministry of Housing, Communities & Local Government (MHCLG) published statutory guidance to assist LGPS administering authorities and scheme employers in implementing and operating the regulations on ‘employer flexibilities’. 

     

    He added that the Fund’s proposed application of these new flexibilities has now been reflected in a revised Funding Strategy Statement and Administration Strategy which are currently being consulted upon  ...  view the full minutes text for item 4.

    5.

    Pension Fund Risk Register - Risk Register Overview pdf icon PDF 88 KB

    Additional documents:

    Minutes:

    The Service Director Performance and Improvement presented the arrangements in place to manage risk within the Pension Fund.

     

    He advised members that the fund maintains a risk register which is reviewed and updated on a quarterly basis.    He referred members to the risk register attached at Appendix 1 for their consideration.

    Members commented that they felt reassured to see that there was only one area deemed high risk which was in relation to the financial market supressed by the economic climate, global austerity measures and Brexit

     

    RESOLVED: Members noted the contents of the report.

     

    6.

    Wales Pension Partnership - Update (including WPP Business Pan 2021-2024 pdf icon PDF 86 KB

    Additional documents:

    Minutes:

    The Senior Accountant Pensions and Treasury Management presented the report to members, which detailed the work and progress to the Wales Pension Partnership and Joint Governance Committee.  She advised that the last meeting of the JGC was held on the 24th March 2021 where the Host update included the following:

     

    Work was continuing to develop in a number of key areas:

     

    • WPP Sub funds – Work continues with the next tranches of sub-funds covering emerging market equities and private markets.
    • Finalising reporting requirements with Robeco, the WPP voting and Engagement Service Provider.
    • Officer Working Group sub-groups:

    o   Private Markets sub-group.

    o   Responsible Investment sub-group.

    o   Risk Register sub-group.

     

    Next Steps / Priorities:

     

    • Continuing the work of the private markets sub-group.
    • Completion of the 2020/21 year-end closure of accounts.
    • Prepare the 2020/21 Annual Update and Annual Return.

     

    Other Key areas:

    ·         Virtual training sessions continue.

    ·         The website continues to be updated with approved policies, press releases and details of sub-fund launches.

     

     

    She advised members that the next JGC is scheduled to take place on 28th July 2021.

     

    RESOLVED: Members considered and approved the WPP Business Plan 2021-2024.

    7.

    Urgent Business

    To consider any urgent items as the Chairman feels appropriate

    Minutes:

    None received