Agenda item

Report of the Director of Finance.

The Committee received a report of the Director of Finance, together with a confidential appendix, which updated Members on:

·                     the draft Work Programme inviting Members’ comments and agreement;

·                     a new investment and management performance dashboard report summarising key fund performance, risk indicators, trigger monitoring report and PIRC Performance Indicators.  The Committee were invited to comment on the performance and investment dashboard report and the preferred format and presentation for future reports;

·                     the Fund’s performance to 31March 2019;

·                     issues raised by Pension Board.

A representative of Aon Hewitt introduced the report and referred to the Investment Dashboard, colour copies of which were circulated to the Committee and larges copies would available for the future.  The Committee welcomed the Dashboard, as it brought together all elements of the Pension Fund on two pages.  It was noted that the Dashboard would be produced quarterly.  The representative reported that he was not recommending any changes to trigger monitoring and no de-risking actions were being recommended.  He explained the asset allocation as set out on the Dashboard and within the London CIV (Collective Investment Vehicle).  He added that there were no areas of concern and the performance was dependant on the investment strategy.  All Fund Managers were being monitored and the new team at LaSalle was being given an opportunity to ‘bed in’.

An Independent Adviser asked question relating to the London CIV and the projections for 1 year and 3 years.  In response, a representative of Aon Hewitt stated that this aspect was covered elsewhere on the agenda but assured the Committee that the direction of travel was right.  The asset allocation within the London CIV would be considered.  The Chair indicated that he was not supportive of the CIV and would take that message back to the CIV.

The Chair requested that an updated appendix 5 to the report be circulated electronically monthly.  An officer said that the Fund value had increased despite the volatility in the financial markets.  He expected the figure set out in appendix 5 to show £867m by end of June 2019.

An Independent Adviser enquired if Minute 58, resolution 1 – rebalance to the Strategic Benchmark Allocation by redeeming 5% across all equity holdings and the cash holding to be held within Blackrock to sit within the London CIV – had been actioned.  An officer reported that the process was underway.  He confirmed that the London CIV did not have a cash management sub-fund.  Aon Hewitt reported that they did not understand why the CIV did not have a cash fund.

An officer confirmed that the holding in Aberdeen Standard Investments had been sold and that a transition manager had not been used.

An adviser raised the recent experience of Woodford Investment Management.  A representative from Aon Hewitt assured the Committee that the Harrow Pension Fund was not affected and that he was not overly concerned with the holding of liquid assets within the Fund.  He was of the view that there were no liquidity issues in relation to Standard Life GARS (Global Absolute Return Strategies Fund) before it was sold in April 2019. 

RESOLVED:  That, subject to comments set out in the preamble above, the Work Programme for the period up to March 2020 be agreed.