Agenda and minutes

To approve as an accurate record and the Chair to sign the minutes of the meeting held on 13 February 2019.

RESOLVED –

THAT, the minutes of the meeting held on 13 February 2019 were approved and signed by the chair

There were no apologies for absence.

If a Councillor has a disclosable pecuniary interest in a particular item, whether or not it is entered in the Authority’s register of interests, or any other significant interest which they consider should be declared in the public interest, they should declare the existence and, unless it is a sensitive interest as defined in the Member Code of Conduct, the 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 disclosable pecuniary interest or other significant 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.

Where Members of the public are not allowed to be in attendance and speak, then the Councillor with a disclosable pecuniary interest should withdraw from the meeting whilst the matter is under consideration. Councillors who have declared other significant interests should also withdraw from the meeting if they consider their continued participation in the matter would not be reasonable in the circumstances and may give rise to a perception of a conflict of interest.

Councillors are not obliged to withdraw from the meeting where a dispensation to that effect has been obtained from the Audit, Pensions and Standards Committee.

There were no declarations of Interest.

This report recaps the reason for moving to buy and maintain, and reviews the procurement process undertaken to get this far.

Matt Hopson, Strategic Investment Manager, invited members to express their views on BlackRock and PIMCO, buy and maintain investment managers following the training session held on 26 March 2019.

Councillor Rebecca Harvey, referring to PIMCO’s presentation, asked why there a drop-in performance in had been 2018. Matt Hopson explained that the bond value had fallen due to the increase in interest rates during that period.

Matt Hopson explained that the two investment managers offered different options to the Fund. BlackRock was a more actively managed and sterling focused fund. PIMCO was a very experienced fixed income manager with possibly the largest team of analysts globally, therefore offered more diversification in global markets.

Members felt that PIMCO presented as a better option for the Pension Fund due to the diversification benefits and asked for further clarification around the management fees for PIMCO. In response, Phil Triggs, Director of Treasury & Pensions, explained that the reduced fee offered by PIMCO would be reviewed in 2 years - the new rate would be established based on the total LCIV value of the sub-fund after 2 years.

Members asked if information regarding PIMCO’s hedging process could be circulated to the Sub-Committee as this was not covered during the training session.

RESOLVED -

THAT, the Sub-Committee appoint PIMCO as a buy and maintain investment manager.

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.

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.

This report contains the exempt elements of item 4.

The exempt elements of this item were noted.