Agenda and minutes

To note the attendance at this meeting of any duly appointed Reserve Members.

RESOLVED:  To note that there were no reserve Members in attendance at this meeting.

To receive declarations of disclosable pecuniary or non pecuniary interests, arising from business to be transacted at this meeting, from all Members present.

RESOLVED:  To note that Councillor Norman Stevenson declared a non-pecuniary interest in that he was a Director of Cathedral Independent Financial Planning Limited and had clients who were past and present members of the Harrow Pension Scheme.  Furthermore, he declared that his wife was a member of Harrow Council’s Pension Scheme.  He would remain in the room whilst the matters were considered and voted upon.

That the minutes of the meeting held on 19 September 2023 be taken as read and signed as a correct record.

RESOLVED:  That the minutes of the meeting held on 19 September 2023, be taken as read, and signed as a correct record.

To note any public questions received.

Questions will be asked in the order in which they were received.  There will be a time limit of 15 minutes for the asking and answering of public questions.

[The deadline for receipt of public questions is 3.00 pm, 15 December 2023.  Questions should be sent to publicquestions@harrow.gov.uk  

No person may submit more than one question].

RESOLVED:  To note that no public questions were received at the meeting.

To receive petitions (if any) submitted by members of the public/Councillors.

RESOLVED:  To note that no petitions were received at the meeting.

To receive deputations (if any).

RESOLVED:  To note that no deputations were received at the meeting.

Report of the Director of Finance and Assurance

Members received the Audit of Pension Fund Accounts 2021-22 from Mazars.

At its meeting 12 October 2022, the Committee had reviewed and approved the draft pension Fund Annual Report and Accounts for 2021-22.  Since that meeting, the Committee had received regular updates on the progress of the audit.  Although the audit was largely complete, and only a small number of presentational changes were required, the requirement for the auditor to confirm that the Pension Fund accounts were consistent with the Council’s main accounts meant that formal sign-off of the Pension Fund accounts was delayed.  The delays were mainly due to a number of national issues affecting local authority audits more generally.

The audit had now been completed. Mazars had reported the outcome to the Governance, Audit, Risk Management and Standards Committee (GARMS) Committee on 29 November 2023.

Members asked how Harrow’s Pension Fund Accounts compared with other London Boroughs, and whether there was room for improvement.  The auditors advised that there were no errors in the audited accounts, and therefore, no control recommendations had been made.  The auditor also indicated that relative to its peers, the absence of errors and the quality of the accounts submitted for audit was very good.

RESOLVED:  That the report be noted.

Report of the Director of Finance and Assurance

Members received a report which provided an update on the recently published results following responses to the consultation document on Local Government Pension Scheme (LGPS) Investments and Pooling.

The Government had undertaken a consultation on reforms to the arrangements for investment of LGPS assets.  The latest plans had been outlined in the Chancellor of the Exchequer’s speech at the annual Mansion House dinner in July 2023.  During that speech the Chancellor had announced reforms for the LGPS in England and Wales, covering asset pooling, levelling up and opportunities in private equity.  Following this, the Department for Levelling Up Housing and Communities (DLUHC), published a consultation on the areas the Chancellor had highlighted in his speech.

A key target announced is a minimum pool size of £50m – London Pension Funds’ total assets at 31 March 2023 were £45 billion, of which LCIV currently manages £14 billion pooled or committed, and a further £12.3 billion is in passive investments whose fee levels were negotiated by LCIV.

Members queried the “Definition of Levelling Up investments” and whether social aspects should be considered.  It was advised that “Levelling Up” was an outcome and not an asset class.  It was envisaged that social aspects to investments would continue being paramount, through investments such as  housing for rent (including social housing) and urban regeneration.  However the key issue will be ensuring that the investments meet the Fund’s return objectives.

RESOLVED:  That the report be noted.

Report of the Director of Finance and Assurance

Members received a report on the Investments and Managers Performance Review.

The report updated the Committee on regular items as follows:

·                 draft work programme for the remainder of 2023-24 on which the Committee’s comments and agreement were requested;

·                 the investment and management performance dashboard report summarising key fund performance and risk indicators and PIRC Performance Indicators;

·                 fund performance to 30 September 2023 and 31st October 2023; and

·                 update on Audit of Annual Report and Accounts for 2021-22.

Members requested that meeting dates for the next Municipal Year be communicated as soon as practical, and that future meetings be held on Mondays.

RESOLVED:  That the draft work programme for the remainder of 2023-24 be approved.

To resolve that the press and public be excluded from the meeting for the following items of business, on the grounds that it involves the likely disclosure of confidential information in breach of an obligation of confidence, or of exempt information as defined in Part I of Schedule 12A to the Local Government Act 1972:

RESOLVED:  That in accordance with Part I of Schedule 12A to the Local Government Act 1972, the press and public be excluded from the meeting for the following item(s) for the reasons set out below:

Appendices 3 and 4 to the Report of the Director of Finance and Assurance

Members received two confidential appendices to the report on the Investments and Managers Performance Review.  There was a detailed discussion about the unsatisfactory performance of certain investment managers.

RESOLVED:  That appendices 3 and 4 be noted.

Report of the Director of Finance and Assurance

Members received a confidential report which provided an Update on Pension Fund Procurements (Actuarial Services and Investment Consultancy Services).

RESOLVED:  That the report be noted.

Report of the Director of Finance and Assurance

Members received a confidential report on the Investment Strategy Implementation. 

RESOLVED:  That the report be noted.