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Meeting Details

Pension Fund Panel
11 Mar 2021 - 19:00 to 21:00
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  • Declarations of Interests
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Documents

Agenda

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Standard Items
VIRTUAL MEETING - LINK TO VIEW
This meeting will be a virtual meeting and therefore will not take place in a physical location following regulations made under Section 78 of the Coronavirus Act 2020. This meeting can be viewed by following this link:

LINK HERE


1 Apologies for Absence
1

Councillor Kamaljit Kaur Nagpal

 

2 Urgent Matters
2

There were none.

 

3 Declarations of Interest
3

There were none.

 

4 Matters to be Considered in Private
To determine whether items contain information that is exempt from disclosure by virtue of Part 1 of Schedule 12A of the Local Government Act 1972.

4

To determine whether items contain information that is exempt from disclosure by virtue of Part 1 of Schedule 12A of the Local Government Act 1972.

 

Item 6 contained confidential information by virtue of paragraph 3 of part 1 of schedule 12A of the Local Government Act and was taken partially in private.

 

Items 7, 8 and 9 contained confidential information by virtue of paragraph 3 of part 1 of schedule 12A of the Local Government Act and were taken in private.

 

 

5 Minutes
To approve as a correct record the minutes of the meeting held on 26 November 2020.
5

The minutes were approved by the Panel as a correct record of the minutes of the meeting held  on 26 November 2020.

 

Exclusion of the Public and Press
The Meeting will go into Private Session.

The Public and the Press were excluded from the meeting and the  meeting went into Private Session.

 

  1. pdf 6.1 Appendix A Market Review from managers - Copy - Private
  2. pdf 6.2 Appendix B LCIV Voting - Copy - Private
  3. pdf 6.3 Appendix C Top 15 Market Values 31 December 2020 - Copy - Private
  4. pdf 6.4 Appendix D - Funding Update 31 December 2020 - Copy - Private
  5. 6.5 CONFIDENTIAL Appendix E HYMANS HIGH LEVEL OBJECTIVES Rolled Over 2021-22 - Copy
    • Information relating to the financial or business affairs of any particular person (including the authority holding that information);
  6. 6.6 CONFIDENTIAL Appendix F Briefing Proxy Investment Approved Under Delegation - 2021Feb - Copy
    • Information relating to the financial or business affairs of any particular person (including the authority holding that information);
  7. 6.7 CONFIDENTIAL Appendix G - BlackRock ACS World ESG Equity Tracker fund - Hyman Advice - Copy
    • Information relating to the financial or business affairs of any particular person (including the authority holding that information);
6

(Agenda items 6 and 11)

 

Bridget Uku presented the main points contained in the Pension Fund Performance Monitor Update for the quarter ended 31 December 2020.

 

  • A number of exit credits were being looked at by Legal who were taking Counsel’s opinion on unique circumstances
  • The fund had grown from 91 – 93%
  • There would be no Annual General Meeting due to Covid-19 but - letters and emails would be used to update Pensioners

 

Bridget Uku went on to explain-

 

The authority was no longer signed up to the stewardship code as the new requirements are deliberately much more onerousThis may be something the authority wants to consider as it embarks on a revised responsible investment transition pathway.

 

Resolved

 

That, the panel -

 

  1. Noted the value of the Fund Investments of £1,447.4m, up from £1,349.6m as at 30 September 2020, (7.3% increase). This included £124.2m of net asset value of our pooled property holdings. (para. 4.6 of the report)
  2. Noted the Scheme’s funding update as at 31 December 2020 (para. 5 of the report)
  3. Noted the current position on class action filings. (para. 6 of the report)
  4. Noted that the Pension Fund in house cash stood at £113.9m as at 31 December 2020 (para 7 of the report).
  5. Noted that the full disinvestment from Lazard’s UK Equity mandate as approved by Members at the 3 September 2020 meeting was transacted on 22 October 2020 and 1 December 2020 respectively. The Fund’s equity investments and were now all global  (inc. of UK) (para 3.6 Table 3 of the report)
  6. Noted that as per the approval at the last meeting, proxy investment has now been agreed following consultation with the Chair, Vice Chair and opposition spokesperson and is being implemented in line with private and confidential Appendix F of the report (private and confidential) provided no significant market changes take place that require pause.
  7. Noted that as part of the proxy voting approval the Fund is now invested in a new London Collective Invest Vehicle (LCIV) manager Blackrock and the due diligence paper by the Fund’s advisers Hymans is attached as Appendix G of the report (private and confidential)
  8. Noted that as advised at the November meeting, the Competition and Market Authority Certificate (CMA) certificate to confirm that we have set objectives for our Advisers Hymans has now been signed and submitted in line with the CMA requirements.
  9. Noted that the objectives agreed by Members for the Fund’s advisers Hymans attached as Appendix E of the report (private and confidential) would be rolled forward for 2021/22
  10. Noted the latest update on topical issues within the LGPS arena. (para. 9 of the report)
  11.  Approved the delegation of updating the Fund’s Funding Strategy Statement (and associated policies contained within it) to the Chief Finance Officer (in consultation with the Chair, Vice Chair and Opposition spokesperson) and report back at the earliest opportunity. The Statement needed to be updated to incorporate policies to reflect the new flexibilities available to administering authorities and employers participating in the LGPS, which were introduced into the LGPS Regulations in 2020 i.e. the ability to enter into Deferred Debt Arrangements, request a review of contributions inter-valuation. This would involve consultation with all employers. (para. 9.8 of the report)
  12. Noted the Update on the LCIV (para.10 of the report)
  13. Noted that a property review approved by this Committee on 26 November 2020 would be carried out in the final quarter of 2021 when there was better visibility surrounding the impact of the pandemic on both the economy and on the UK property market. Page 3 of 25 of the report
  14. Received a presentation and a general update from Churchill, one of the Fund’s private debt managers (para 11.2 of the report)
  15. Received a presentation from Henley Secure Income Property Unit Trust (para. 11.1 of the report)
  16. Received a presentation from the LCIV on the London Fund (para. 11.2 of the report)
  17. Noted that the Scheme Members have been informed that there would not be a Pension Fund Annual General Meeting (AGM) this year and emails or letters had been sent to members with a link to the PF annual and abridged reports. (para 11.2 of the report)
  18. Noted the update on Investment Strategy Statement Implementation (para. 13 of the report)
  19. Noted officers were still awaiting legal clarification regarding Optivo exit payment
  20. Noted that in line with the delegation agreed on the 5 July 2018 to the Chief Finance Officer, the CFO would continue to implement the strategy changes required (managing risks and costs) in consultation with Hymans Robertson, The Chair, Vice Chair and opposition spokesperson.
  21. Noted that there was still some rebalancing of the Fund to complete. The timing of the rebalancing would take place in like with the consultation protocol agreed as part of this delegation.

 

7 LCIV– presentation on the London Fund
9

Stephanie Aymes – Client Relations Manager and Jason Fletcher – London CIV – CIO from July 2020 informed the Panel-

 

  • London Fund launching with LPPI (London’s Pension Partnership)
  • Managing as AFIM LPPI Investment manager and risk within it – Long terms investment (15 years)

 

Jonathan Ord – LPPI – London Fund (Private Markets team) delivered the presentation which can be seen on the meeting web site by members with access.

 

To questions from the panel the LCIV team responded-

 

  • A north London Fund was the first to join LCIV
  • Seed investment group would be available from Stephanie Aymes, developed with London LCIV funds
  • LPPI was charging razor thin charges but private market investments are more expensive than listed markets
  • They invested in Infrastructure and redevelopment
  • Clients benefited from the scale of the collaborating reducing costs
  • the opportunity set was relatively large – but generated social outcomes thinned out opportunities producing a level of return at affordable fee rate
  • Part of the job was to sift through what would generate those attributes
  • It was always hard to find the right ones.

 

 

Resolved-

 

 

That, the Panel thanked the LCIV team for their informative presentation

 

 

8 Henley Secure Income Property Unit Trust –investing in UK based Supported Living Social Housing
7
The Henley Team included Jenny McLynn, Stuart Savidge, Tony Wilcox and Vicky Amlot

Jenny McLynn, Director of Investor Relations introduced the Henley Secure Income Property Unit Fund.

Stuart Savidge and Vicky Amlot, Henley Secure Income Property Unit Trust then gave an update on the private debt market.

 

Resolved

 

That, the Panel thanked the Stuart Savidge and Vicky Amlot for their informative presentation.

 

9 Churchill – private debt market update
8
Rachel Green introduced herself handing over to Shai Vichness who gave the Churchill presentation which can be seen via the meeting web site.

 

Resolved

 

That, the Panel thanked Rachel Green and Shai Vichness for their informative presentation.

 

Readmission of the Public and Press
The Meeting will go into Public Session.

  1. pdf 10.1 Appendix 1 - Ealing Pension Fund Quarterly Admin Report Q3 - 1.10.2020 - 31.12.2020 (3296Kb)
  2. 10.2 CONFIDENTIAL Appendix 2 - Pensions Administration Budget Proposal 2021 - 2022
    • Information relating to the financial or business affairs of any particular person (including the authority holding that information);
  3. pdf 10.3 Appendix 3 - Q3 Bereavement Analysis - Ealing (506Kb)
10

Jenny Connett introduced this item.  Jenny Connett stated that the Board 
had been asked to feedback on whether it was wise to go out to tender 
for Administration and market test the fee increase being proposed.

The Chair and Sukhminder Kalsi (trade Union representative) agreed 
that they did not want to appoint new administrators as previous 
experience of doing so had not been positive compared with the current 
administrators.


Resolved

That, the Pension Fund Panel-

 

  1. Noted the performance of the LPPA as set out in Appendix 1 of the LPPA’s Quarterly Administration report covering the period 1/10/2020 – 31/12/2020. The report included casework performance against SLAs, plus several other enhanced service measures on the membership of the fund
  2. Accepted the 2021/2022 pensions administration budget proposed 
    by the LPPA as detailed in Appendix 2 paragraph 2 of the LPPA’s 
    Quarterly Administration report covering the period 1/10/2020 – 
    31/12/2020
  3. Noted that Broadway Living Ltd would become a Designated Body 
    in the pension fund from 1/4/2021. 15 staff will be TUPEing over to 
    Broadway Living. As Broadway Living Ltd was a wholly owned by 
    Ealing Council, the admission fell under Part 2 of Schedule 2 of 
    the LGPS Regulations.

 

  1. pdf 11.1 Appendix A Market Review from managers (254Kb)
  2. pdf 11.2 Appendix B LCIV Voting (242Kb)
  3. pdf 11.3 Appendix C Top 15 Market Values 31 December 2020 (190Kb)
  4. pdf 11.4 Appendix D - Funding Update 31 December 2020 (596Kb)
  5. 11.5 CONFIDENTIAL Appendix E HYMANS HIGH LEVEL OBJECTIVES Rolled Over 2021-22
    • Information relating to the financial or business affairs of any particular person (including the authority holding that information);
  6. 11.6 CONFIDENTIAL Appendix F Briefing Proxy Investment Approved Under Delegation - 2021Feb
    • Information relating to the financial or business affairs of any particular person (including the authority holding that information);
  7. 11.7 CONFIDENTIAL Appendix G - BlackRock ACS World ESG Equity Tracker fund - Hyman Advice
    • Information relating to the financial or business affairs of any particular person (including the authority holding that information);
  1. pdf 12.1 Appendix 1 Workplan 2021-22 (144Kb)
  2. pdf 12.2 REPORT - Appendix 2 Cash Flow Forecast (16Kb)
  3. 12.3 CONFIDENTIAL Appendix 3 Confidential Management and Administration Estimates
    • Information relating to the financial or business affairs of any particular person (including the authority holding that information);
11

(Agenda item 12)

 

Bridget Uku presented this item

 

Resolved

 

That, the Pension Fund Panel-

 

  1. Agreed the outline Work Plan detailed in Appendix 1 of the report
  2. Noted the forecast pension fund revenue account outturn for 2020/21 (as shown in table 2, para 4.1 of the report)
  3. Noted the estimated cash forecast for 2020/21 and budgetary estimate for 2021/22 (as shown in Appendix 2 of the report)
  4. Agreed the pension fund revenue account budgetary estimate for 2021/22 (as shown in table 2, para 4.1 of the report)

 

13 Date of Next Meeting
The next meeting will be held on 15 July 2021.
12

(Agenda item 13)

 

The Chair announced that the next meeting would be held on 15 July 2021, thanked all those who had contributed to the meeting and closed the meeting.

 

Attendance

Name
No other member attendance information has been recorded for the meeting.
NameReason for Sending ApologySubstituted By
Councillor Kamaljit Kaur Nagpal  
NameReason for AbsenceSubstituted By
No absentee information has been recorded for the meeting.

Declarations of Interests

Member NameItem Ref.DetailsNature of DeclarationAction
No declarations of interest have been entered for this meeting.

Visitors

Visitor Information is not yet available for this meeting