Agenda and minutes

The Chairman of the Local Pension Board, Councillor Brian Salinger welcomed all attendants to the meeting.

It was RESOLVED that the minutes of the previous meeting held on 10^th February 2016, be agreed as a correct record.

None.

Apologies for absence received from Mr Tom Evans.

None were received.

None.

None.

The Chairman introduced the item which summarises the Pension Fund investment manager performance for January to March quarter 2016 and was reported to the Pension Fund Committee (PFC) on 19 July 2016.

Iain Millar presented the report to the Board and noted that the Pension Fund Committee had expressed their preference to receiving an update on the performance for January to June 2016. The Board received a summary of the discussion at the meeting of the Pension Fund Committee.

In response to a query from the Board about the effects of Brexit on the performance of the Pension Fund, Mr Millar stated that the views expressed by the fund management companies’ representatives at the PFC meeting was that it was too early at this stage to provide exact performance figures. Following the diversification and asset reallocation of the Fund in the short term, there had been a positive increase in recent fund performance.

Following a request from the Board for information, Mr Millar noted that fund managers will be asked about their approach in relation to the US elections in November 2016. (Action)

Mr Stephen Ross queried whether the figures given provided a benchmark of the gross of fees. Following discussion, Mr Millar briefed the Board about the request made by the PFC to ensure that the Independent Investment advisor reconcile performance figures with the fund management representatives in respect of data from Newton Investment Management and Schroder Investment Management. This would ensure that there would be consistent reporting on the same basis from the independent investment advisors and the fund management representatives.

In relation the fund management companies’ fees, Mr Ross requested that in addition to percentage figures, the actual figures paid be circulated to the Board for information.

It was RESOLVED:

That the Board noted and provided comments as above on the Barnet Council Pension Fund Performance for Quarter January to March 2016.

The Chairman introduced the update report on the Admitted Bodies participating in the Local Government Pension Scheme administered by LBB. The Board heard about the discussions at the PFC meeting and noted that the Committee had raised concerns about shortfall of contribution payments and issues with small admitted bodies finding a bond provider.

To ensure Council risk is mitigated, the Board noted that PFC had requested an update report at its next meeting. The Board will also receive the update report at its next meeting. (Action)

It was RESOLVED:

That the Board noted the Barnet Council Pension Fund Admitted Bodies Organisations.

Board Members were briefed about the presentation delivered to the Pension Fund Committee. The Board also heard about the benefit of achieving efficiencies through pooling into London Collective Investment Scheme which had received full authorisation by the Financial Conduct Authority.

In addition, Mr Millar stated that the London CIV would be in a good position to respond effectively to further calls for national pooling of funds.

Following a comment from the Board, it was noted that downward pressure on fund management fees is likely to continue which would need to be balanced against fees towards effective management.

The Board noted that a future update report on London CIV will be brought back to this Board following initial reporting to the Pension Fund Committee.

Following a query from the Board, Mr Millar informed Board Members about the governance structure of the London CIV which involves the individual London Boroughs. Mr Millar also noted that in relation to the London CIV governance arrangements, the respective independent investment advisors would be retained for the individual Boroughs.

The Board requested information about the costs for the transition process for Newton Investment Management Limited and Schroders Investment Management Limited. This information would be circulated to the Board when available. (Action)

The Chairman thanked the Board for the discussion.

It was RESOLVED:

That the Board noted and provided comment as above on the London Collective Investment Vehicle Update and Response to Local Government Pension Scheme Reform Consultation.

The Chairman introduced the report which was noted by the Board. The Board also noted that the report will be taken to the Pension Fund Committee and Full Council to note.

It was RESOLVED:

1.    That the Local Pension Board noted the update on: the summary of the work undertaken by the Board; its terms of reference; the work programme for the Board; details of training undertaken by Board members as set out in paragraph 1.7; and details of conflicts of interests and how they were managed as set out in paragraph 1.9.

2.    That the Local Pension Board noted and commented as set out in the minutes of Agenda Item 11 (Work Programme) on the annual work plan attached at Appendix C and agree to it being referred to the next meeting of the Pension Fund Committee.

The Chairman introduced the items on the Forward Plan which is a standing item on the agenda and lists the items for 2016/2017.

The Chairman requested that Board Members receive email notification with links to the published Pension Fund Committee papers and minutes going forward. (Action)

The Board requested that an update be circulated to the Board about core competencies, refresher training and invitations to Pensions seminars. It was agreed that officers will be discussing the approach forward in consultation with the Chairman and circulate to the Board accordingly. (Action)

The Board agreed that the holding date of 23^rd March 2017 be confirmed as its March meeting date.

It was agreed that Mr Millar would discuss the option of reporting an update on the administration of the LGP Scheme with the Chairman and agree when it would be reported to the Board. (Action).

The Chairman thanked the Board for their contribution.

It was RESOLVED:

That the Committee considered and commented as above on the items included in the 2016- 17 work programme.

None.