Agenda and minutes

To receive apologies for absence.

There were no apologies. 

The Chair welcomed Rachel Pinder, Aon to her first meeting since her return from a 12 month sabbatical and congratulated Chris Hurst on his appointment as Pension Fund Manager to replace Joe Rollin on his retirement.

To receive any declarations of interest from Members relating to items to be considered on the Agenda.

Members of the Committee declared interests as members of the Local

Government Pensions Scheme.  These are personal interests, not prejudicial

interests in accordance with Paragraph 12(b) (iv) of the Members Code of

Conduct 2016. 

To authorise the Chair to sign the minutes of the last meeting held on 15 December, 2017 as a correct record.

The Chair was authorised to sign the minutes of the last meeting held on 15^th December, 2017 as a correct record.

The Committee agreed to consider the draft Pension Board minutes on the arrival of the Pension Board Chair.

To consider and note the Training Plan.

Mr G Moore, Chair Pension Board arrived.

The Committee noted that in respect of Asset Allocations a specialist could attend a future meeting to provide training on this issue.  In response to a question regarding training opportunities Aon Hewitt advised that the training requirements of each Committee member could be assessed and then a training programme developed.

The Pension Fund Manager advised that a training programme had been agreed for the Pension Board and that the Committee could participate in this programme. 

The Chair went back to Item 4 on the Agenda, Pension Board minutes.

To consider the recommendations from the Powys Pensions Board and note the issues considered by the Board and receive for information the draft minutes of the meeting held on 12 January, 2018.

The Pension Board Chair introduced the cover report to the minutes of the meeting held on 12 January, 2018.  He advised that he would use the cover report to highlight recommendations from the Board and also advise the Committee of assurances received by the Board and other issues discussed, so that the work of the Board becomes more transparent to the Committee.

The Committee noted the report.

The Pension Fund Manager advised that due to his unfortunate accident in October last year, Geoff Petty, was unable to continue as one of the Employer’s Representatives on the Pension Board.  Discussions were taking place between the Acting Chief Executive and the Cabinet regarding a replacement.

To consider the Statement.

The Committee received the Investment Strategy Statement [ISS].

It was questioned whether the ISS should state that Investment Managers should meet MIFID2 requirements and whether the long term Investment objectives should also refer to the solvency of funds.  It was agreed that the definition of the term “solvency” needed to be considered.   The Pension Fund Manager advised that the ISS would be attached to the annual report which would be published prior to the next meeting.

It was noted that although the County Council had not formally signed up to the UK Stewardship code it aims to abide by the principles of the code where appropriate.  The Pension Fund Manager advised that the Regulator states that if a Council does not sign up to the Code, it should explain its reason.  He advised that the Council could consider this issues but this could be via the Pooled Fund.

The Monitoring Officer has determined that category 3 of the Access to Information Procedure Rules applies to the following items. His view on the public interest test (having taken account of the provisions of Rule 14.8 of the Council's Access to Information Rules) was that to make this information public would disclose information relating to the financial or business affairs of any particular person (including the authority holding that information).  These factors in his view outweigh the public interest in disclosing this information.

Members are asked to consider these factors when determining the public interest test, which they must decide when considering excluding the public from this part of the meeting.

RESOLVED to exclude the public for the following items of business on the grounds that there would be disclosure to them of exempt information under category 3 of The Local Authorities (Access to Information) (Variation) (Wales) Order 2007).

To consider a report by Aon Hewitt.

The Committee considered Items 8 and 9 together.

The value of the Fund as at 31 December, 2017 stood at £630.219m, which was an increase of £22.1m over Quarter 4.  It was noted that the Fund had strong performance overall.  The Committee was advised that increased volatility was expected over the next year and things such as US tariffs would have an impact.  Markets over the next few years would see lower returns.

Aon Hewitt in response to a question regarding the County Council contributing to the Pension Fund advised that although the Fund had increased over the last year there was still a need for the Council to contribute to support the Fund.  It was considered that the Fund would be closer to being fully funded by 2020.

To consider a report by Aon Hewitt.

See item 8 above.

To consider a report by Aon Hewitt.

The Committee received the Medium Term Asset Allocation [MTAA] update Quarterly update to 31 December, 2017.

The Fund had outperformed the benchmark by being overweight in equities and underweight in bonds.

To consider a report by Aon Hewitt.

The Committee noted the report.

The Committee moved into open session.

The following item was taken next.

To agree an addition to the list of signatories.

The Committee noted that the new Deputy Head of Financial Services, Stephen Caple needed to be added to the list of signatories.

To receive training on The Pensions Regulator from the Pension Board Chair.

Gerard Moore, Chair, Powys Pension Board provided a training session regarding The Pensions Regulator.

The Chair welcomed representatives of LINK Asset Services and Russell Investments, which had been contracted to manage the Wales Pension Partnership Pooled Funds.

The Committee noted the following:

·       the contract between the Pooled Fund and LINK is five years

·       LINK will run the Fund and all the risk but it does not undertake the investment management selection or portfolio construction.  It has contracted with Russell Investment to do this, again for a five year period. 

·       Russell Investment will advise the Pool Board on the best managers and once the Board agrees on who to use, LINK will contract with the investment managers.  Russell Investment will monitor the investment managers selected. 

·       the Pooled Fund’s Officer Working Group will receive advice from LINK

·       the first area of funds to be developed via the Pool would be Global Equities, which should be launched by the end of August or early September 2018.  Hedge Funds would probably be considered next year.

In response to a question regarding savings to be achieved through pooling the Committee was advised that it could see fees cut by 5/6ths.

The Chair and Committee thanked Joe Rollin, Pension Fund Manager for his work and support over the years and wished him all the best on his retirement.