Agenda and minutes

(a) To approve as an accurate record and the Chair to sign the minutes of the meeting held on 25 November 2015.

(b) To note the outstanding actions.

Consideration of the minutes was deferred to the next meeting.

Apologies for absence were received from Councillor Michael Adam, Councillor Nicholas Botterill and Councillor Guy Vincent.

The Chair acknowledged that the meeting was not quorate, but the meeting would proceed as a briefing with any decisions being deferred until the next meeting.  

If a Committee member has any prejudicial or personal interest in a particular item they should declare the existence and nature of the interest at the commencement of the consideration of that item or as soon as it becomes apparent.

At meetings where members of the public are allowed to be in attendance and speak, any Councillor with a prejudicial interest may also make representations, give evidence or answer questions about the matter. The Councillor must then withdraw immediately from the meeting before the matter is discussed and any vote taken unless a dispensation has been obtained from the Standards Committee.

Where Members of the public are not allowed to be in attendance, then

the Councillor with a prejudicial interest should withdraw from the meeting whilst the matter is under consideration unless the disability has been removed by the Standards Committee.

There were no declarations of interest.

This report presents the Pension Fund quarterly update pack for the quarter ending 31 December 2015.

The committee received an update on the Pension Fund for the quarter ending on 31 December 2015.

Pension Fund Risk Register

Nicola Webb (Pension Fund Officer) drew the committees attention to the Pension Fund Risk Register as set out on pages 44 – 55; appendix 5 of the report and commented that there had been no changes to Pension Fund Risk Register since the previous quarter (ending 30 September 2015). In light of this, Councillors requested an update on the Council’s transition to Surrey County Council from Capita.

ACTION: Ibrahim Ibrahim and David Coates

Deloitte Quarterly Report

Kevin Humpherson (Deloitte) attended the meeting to provide the committee an update on the Pension Fund investment performance as outlined on pages 12 – 36; appendix 2 of the report. It was reported that Majedie (UK Equity Fund) underperformed the FTSE All Share by 2.6% as it had had suffered from stock specific calls in the supermarket and banking sectors. Majedie attributed its short-term underperformance to market timing and Deloitte continue to rate Majedie positively for its UK equity capabilities. It was additionally reported that Oak Hill Advisors (Diversified Credit Strategies Fund) had underperformed its target by 3.7% although its negative performance was attributed down to market moves and Deloitte expected Oak Hill to regain its positions if its portfolios were held to maturity. 

RESOLVED –

THAT, the report was discussed by the Councillors present.

This report sets out the area’s Members have highlighted for future training and seeks Members’ views on the format and timing of future training sessions, as well as feedback on the training provided to date.

Nicola Webb encouraged the committee to complete the self-assessment forms to help identify any training needs

RESOLVED –

THAT, the report was discussed by the Councillors present.

This report presents an update on London Collective Investment Vehicle (CIV) and asks Members’ to consider a transfer of assets.

Nicola Webb introduced the report, which proposed the transfer of assets managed by Ruffer to the London Collective Investment Vehicle (CIV), which would result in annual savings of approximately £31,000. The committee was satisfied with the report in principle but as the meeting was not quorate, the committee was unable to formally approve the recommendations contained within the report.

The chair of the committee agreed that the report was urgent and agreed that an extra meeting was warranted to approve the recommendations contained within the report.  

RESOLVED –

THAT, the report was discussed by the Councillors present.

This report reviews the decision to transfer assets to a global passive equity mandate with Legal & General Investment Management (LGIM).

Nicola Webb updated the committee on the transfer from MFS to LGIM that occurred in November 2015. It was reported that the cost of transition was £52,900, which was significantly lower than LGIM’s initial estimate of £178,000 due to in-specie transfers and the crossing of stocks, which avoided transaction costs.

RESOLVED –

THAT, the report was discussed by the Councillors present.

22 June 2016.

22 June 2016.

The Committee is invited to resolve, under Section 100A (4) of the Local Government Act 1972, that the public and press be excluded from the meeting during the consideration of the following items of business, on the grounds that they contain the likely disclosure of exempt information, as defined in paragraph 3 of Schedule 12A of the said Act, and that the public interest in maintaining the exemption currently outweighs the public interest in disclosing the information.

RESOLVED–

THAT, under section 100A (4) of the Local Government Act 1972, the public and press be excluded from the meeting during the consideration of the following items of business, on the grounds that they contain the likely disclosure of exempt information, as defined by paragraph 3 of Schedule 12A of the said Act and that the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

To approve as an accurate record and the Chair to sign the minutes of the exempt discussion at the meeting held on 25 November 2015.

Consideration of the exempt minutes were deferred to the next meeting of the Pensions Sub-Committee.

This report presents an update on London Collective Investment Vehicle (CIV) and asks Members’ to consider a transfer of assets.

This item is in addition to agenda item 6 as it contains exempt information.

This item was discussed as part of agenda item 6.

This report reviews the decision to transfer assets to a global passive equity mandate with Legal & General Investment Management (LGIM).

This item is in addition to agenda item 7 as it contains exempt information.

This item was discussed as part of agenda item 7.

This report presents the current asset allocation and asks Members’ to consider the Pension Fund Investment Strategy.

This item was deferred until the next meeting on 22 June 2016.

RESOLVED –

THAT, the report was discussed by the Councillors present.