Agenda and minutes

There were no apologies for absence.

To confirm attendance, the Chair will perform a roll call. Members will

also have the opportunity to declare any interests.

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 Standards Committee.

The Chair carried out a roll call to confirm attendance. There were no declarations of interest.

To approve the minutes of the meeting held on 29^th September 2020.

RESOLVED

That the minutes of the meeting held on 29^th September 2020 were approved.

This paper provides the Pensions Sub-Committee with a summary of the Pension Fund’s overall performance for the quarter ended 30 September 2020.

Timothy Mpofu (Pension Fund Manager), presented the report and gave a summary of the key points. This included an update on the investment manager portfolios since March 2020 and the Fund’s exposure to low carbon investments as part of the Environment, Social and Governance report.

Councillor PJ Murphy referring to the risk register asked for further clarification to be provided on the liability valuation increase for risk 3. In response Phil Triggs outlined the reasons for the small shifts in Consumer Price Index (CPI) inflation and the impact this had on the liability valuation. It was noted that the actuary had confirmed that these figures were correct. Kevin Humpherson (Deloitte) said that any changes in the asset value as a result of shifts in CPI inflation could be included in the risk register going forward.

RESOLVED

That the Sub-Committee noted the report.

This paper and associated appendix provides the Sub-Committee with more detailed information on two asset classes that the Sub-Committee agreed to take forward as potential replacements for the Fund’s inflation protection allocation.

Matt Hopson (Strategic Investment Manager), presented the report and gave a summary of the key points. Members discussed the report.

Resolved:

That the Sub-Committee agreed to interview a selection of shortlisted managers from each asset class.

This paper provides the Pension Fund Sub-Committee with an update on the contracts of its actuarial and investment consultancy services which are due to expire at the end of the year.

Matt Hopson (Strategic Investment Manager), presented the report and gave a summary of the key points. It was noted that the Pension Fund would need to run a procurement exercise to appoint an actuary and investment consultant before the existing contracts expire. Officers planned to conduct the procurement exercise through the National LGPS Framework.

Councillor PJ Murphy asked for further clarification to be provided on the process for appointing an investment consultant and whether there was any scope for the Council to consider the appointment of an alternative (investment consultant) to Westminster County Council. In response, Matt Hopson explained that officers would be conducting separate evaluations for consultancy tenders for the Council and WCC. The preferred option was a joint procurement with WCC (under separate sovereign contracts) which offered better value for money through economies of scale.

RESOLVED:

The Sub-Committee approved that the Pension Fund access the LGPS Norfolk Framework for the use of its actuarial and investment consultancy contract services.

This paper provides the Pensions Sub-Committee with a performance review of the Pension Fund’s investment consultant, in line with the agreed set of aims and objectives.

Phil Triggs (Director of Treasury and Pensions), presented the report and gave a summary of the key points. Officers provided an overview of the performance review for the Pension Fund’s investment consultant (Deloitte), in line with the agreed set of aims and objectives.

As shown in Appendix 1, the consultant’s performance over the past year had been to an excellent standard and the Pension Fund officers remain pleased with the work that the consultant continued to carry out in advising the Fund on its investment strategy.

Members discussed the benefits of appointing an independent consultant, to support the Committee alongside the investment consultant.

Phil Triggs (Director of Treasury and Pensions), noted that a report, setting out a list of alternative options would be brought to a future Sub-Committee meeting.

RESOLVED:

That the Sub-Committee noted the report

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 sub-committee agreed, 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.

To approve the exempt minutes of the meeting held on 29^th September 2020.

Resolved:

That the exempt minutes of the previous Pension Fund Sub-Committee were noted.

This report contains the exempt elements of item 4.

The exempt  elements  of item 4 were noted.

This report contains exempt elements of item 5.

The exempt elements of item 5 were noted.

David Hughes (Director of Audit, Fraud, Risk and Insurance) presented the report and gave a summary of the key points. Members discussed the report.

RESOLVED

That the Sub-Committee noted the report.