Agenda item

Report of the Director of Finance and Assurance.

The Committee received the Performance Dashboard and Update on Regular Items Report.  This updated the Committee on: Draft work programme on which the Committee’s comments and agreement were requested; the investment and management performance dashboard report which summarised key fund performance and risk indicators and PIRC Performance Indicators; Fund performance to 30th June 2021 and an update on the Pension Board.

The officer introduced the report to the Committee in brief, it was noted that:

·                 The arrangements for the upcoming Manager Day for the 2 November 2021 were to see the following organisations: Insight, Longview and GMO. The Officer had also spoken to the LCIV because whilst Longview were the underlying Manager, Harrow was actually invested in the LCIV Global Equity Focus Fund.  LCIV had indicated that they wanted to be present at the meeting.

·                 The Dashboard as at the 30 June 2021 highlighted the funding level of the fund based on the 2019 assumptions was 105% of past service liabilities.

·                 Hymans Robertson had started to run a series of presentations in preparation for the triennial valuation taking place in 2022.  They had indicated that although it might appear that as a result of investment performance over the last 2 years, the past service deficit contributions could fall, this would be at least partly offset by an increase in the forecast for future pay and price increases.  Lower expected future investment returns meant higher contributions could be required for future service to be funded.

·                 £3.7m was invested in the LCIV renewable infrastructure fund.

·                 In respect of the Multi Asset Credit (MAC) fund, the LCIV had confirmed that there was sufficient interest for there to be a single manager alternative credit fund which would be managed by CQS.  This had meant that no alterations would need to be made to the fixed income investment strategy.

·                 Someone had been found to fill the vacant employer representative position on the Pension Board, subject to the decision of the Council.

A number of questions were raised and answered by the officers as follows:

·                 A Member of the Committee enquired about the Managers Day arrangements, to which the Officer explained that the Managers Day would start mid-morning.

·                 An Advisor asked for further explanation for LCIV’s attendance at the Managers Day.  The Officer explained that Harrow Council was invested in the LCIV Global Equity Focus Fund for which Longview were the underlying Manager.  Therefore, because LCIV were technically the fund manager, in this instance they requested to be present at the Managers Day.  However, they were happy for Harrow Council to speak with Longview.

·                 The Officer explained that the intention was to ask for Longview’s presentation at the Managers Day as opposed to the LCIV’s interpretation of Longview’s presentation and for questions to be asked of Longview.  In addition, it would be sought that LCIV would be present to listen to concerns as opposed to directing the session.

RESOLVED:  That the report be noted and that the draft work programme for the remainder of 2021/22 be approved.