Agenda item

The Committee received a report of the Director of Finance which provided an update on the work programme, the performance of Fund Managers, issues raised by the Pension Board and the external audit opinion of the Pension Fund Annual Report and Statement of Accounts for 2017/18.

An officer outlined the content of the report and advised that the Pension Regulator would be making a presentation to the Pension Board at their meeting on 20 September 2018.  Members of the Committee were invited to attend this meeting.

In terms of the transfer of the passive equity funds held with State Street Global Advisors Ltd to BlackRock, the officer advised that the transition had commenced on 7 September 2018.  Monies had been transferred but the governance arrangements were yet to be finalised.

In discussing the report, members of the Committee and Independent Advisers made the following comments:

·                     the Committee agendas were ‘light’ and there needed to be a greater overview of the Fund;

·                     there was a need to understand Harrow’s modelling in relation to the Fund including liability, deficit, asset allocation and the role of the Committee;

·                     training for the Committee should be extended in terms of time allowed and perhaps start at the earlier time of 5.00 pm or alternatively start the formal Committee meeting at the later time of 7.00 pm.  In addition, officers were requested to clarify to fund managers and the CIV (Collective Investment Vehicle) that such training was not part of the formal Committee meeting;

·                     a specific training session on which funds should be moved to the CIV would be helpful.

The officer sought the Committee’s views as to the date of the ‘Meet the Manager’ session and the fund managers that should be requested to attend. Colin Cartwright, AON Hewitt, suggested that consideration be given to the direction of travel, and in particular whether the Council was looking to transfer to the CIV funds managed by the manager.  He added that the Committee needed to be clear on the priorities in terms of meeting the managers.

A Member expressed the view that revisiting existing fund managers at the ‘Meet the Manager’ event would not add any value unless transferring them to the CIV was to be considered.  An observer added that the Committee should meet those fund managers with a record of poor performance whilst an Independent Adviser suggested that the prospective London CIV infrastructure manager be invited to attend if this was possible.

The Committee agreed that the ‘Meet the Manager’ event be held from 1.00 pm – 6.00 pm on Monday 5 November 2018.  Prior to this Members agreed that they hold an informal meeting at 5.30 pm on Monday 8 October 2018 in order to determine the priorities for the ‘Meet the Manager’ day and to confirm the fund managers to be invited on 5 November.  Colin Cartwright, AON Hewitt, undertook to prepare a proposals paper setting out options or gaps.

RESOLVED:  That

(1)          the work programme for the period up to March 2019 be agreed;

(2)          the ‘Meet the Manager’ event be held from 1.00 pm – 6.00 pm on Monday 5 November 2018;

(3)               the interviews for Investment Consultant be held from 1.00 pm – 6.00 pm on Monday 12 November 2018.