Agenda and minutes

Pension Committee - Friday 11 November 2016 10.00 am

Venue: Cabinet Suite - Shire Hall, Gloucester. View directions

Items
No. Item

79.

Apologies

To note any apologies at the meeting.

Minutes:

There were no apologies at this meeting.

80.

Minutes pdf icon PDF 94 KB

To approve as a correct record the non-exempt minutes of the meeting held on 12 August 2016.

Minutes:

The public minutes of the Pension Committee meeting held on 12 August 2016 were agreed as a correct record of that meeting.

81.

Declarations of Interest

Members of the Committee are invited to declare any financial or pecuniary interest related to specific matters on the agenda.

 

Please see note (a) at the end of the agenda.

Minutes:

No declarations of interest were received at the meeting.

82.

Public Questions

To answer any written questions about matters that are within the powers and duties of the Committee. The closing date/time for the receipt of questions is 10.00am on Friday 4 November 2016.

 

To answer any oral question(s) put by members of the public.

 

Depending on the nature of the oral questions asked it may not be possible to provide a comprehensive answer at the meeting, in which case a written answer will be supplied as soon as reasonably possible after the meeting.

Minutes:

No public questions were received.

83.

Members' Questions

To answer any written members’ questions. The closing date/time for the receipt of questions is 10.00am on Friday 4 November 2016.

Minutes:

No members’ questions were received.

84.

Training Update

A verbal update on training issues.

Minutes:

Graham Burrow, Joint Head of Pension Fund, updated members on forthcoming training events.

 

The committee agreed that the briefing sessions on the business case for the Brunel Pension Partnership had been very worthwhile, with excellent presentations and good attendance.

 

It was confirmed that the Gloucestershire Pension Committee Annual Training Day would be held at Shire Hall, Gloucester at 10.00 am on Wednesday 11 January 2017. Pension Board members had been invited to the training.

 

Peter Clark, (Staff and Trade Union Representative), informed officers that he was not receiving his copy of the Local Government Pension Scheme Magazine. This issue has since been resolved, with the magazine, (plus all other correspondence), posted to Peter’s home address. 

 

Peter also requested updates and details of any independent training events committee members may wish to attend in the future. Responding to the request, it was agreed officers would notify the committee of training dates arranged by the Local Government Association.

 

Committee members to contact Graham Burrow if they would like to attend any of the training sessions.

 

Action by - Joint Heads of Pension Fund

85.

Market Valuations and Quarterly Performance Review of the Pension Fund: Quarter 3 2016 pdf icon PDF 18 KB

To note the report.

Additional documents:

Minutes:

Joint Head of Pension Fund, Mark Spilsbury, updated members on the market values for each fund manager and on the performance of the funds for the period 1 April to 30 September 2016.

 

The general feeling was that the impact of the Brexit Referendum and the current political uncertainty were key factors in the poor performance of the fund at this present time.

 

The committee noted the report.

86.

Funding Strategy Statement pdf icon PDF 50 KB

To agree the revised statement.

Additional documents:

Minutes:

Graham Burrow, Joint Head of Pension Fund, explained that, as the Administering Authority, it was necessary for the Pension Fund to maintain the Funding Strategy Statement (FSS) under constant review. He informed members that the current statement had been revised following recent discussions with the Fund’s actuary, Hymans Robertson, and that, following consultation with scheme employers, the revised statement would become effective from 1 April 2017.

 

The committee noted the report.

 

Subject to slight amendment to some sections of the draft document,

 

RESOLVED that the revised statement be agreed for consultation with employers.

 

Following consultation with employers, the final version of the statement to be considered by the Pension Committee on 10 February 2017.

87.

Strategic Asset Review 2016/17

To update the committee.

Minutes:

Mark Spilsbury, Joint Head of Pension Fund, gave an update on the forthcoming review of strategic assets. Mark confirmed that, having gone out to tender, the review would be undertaken by Paul Potter, an Investment Consultant from Hymans Robertson. A number of meetings had been arranged, which would be followed by an update to the Pension Committee and Pension Board in early 2017. A member suggested that the Pension Board draw attention to the review with partners and colleagues and this was agreed.

 

The update was noted.

88.

Pension Board Annual Report pdf icon PDF 47 KB

To note the report.

Additional documents:

Minutes:

The Gloucestershire Government Pension Fund is managed and administered by Gloucestershire County Council on behalf of the local authorities in Gloucestershire and other local bodies providing public services as part of the Local Government Pension Scheme (LGPS) Regulations.

 

The Annual Pension Fund Report was prepared in accordance with the Local Government Pension Scheme Regulations 2013 and the requirement for the Pension Board to provide an annual report to the Pension Committee and to Gloucestershire County Council. The report would be considered by Council on 7 December 2016.

 

Pension Board employee representative and Gloucestershire County Councillor, Cllr Nigel Moor, informed the committee that at the last Pension Board meeting, board members had requested that the Pension Committee include active scrutiny of the fund’s risk register as a standard item on the committee agenda.

 

It was agreed to consider emerging and key risks at regular intervals, supplemented by a request for officers to provide a summary report at selected meetings, outlining key risks and controls.

 

Later in the meeting, a member suggested introducing short training sessions on specific topics to aid members understanding of key issues. It was felt this would be particularly useful following the appointment of newly elected committee members post the council election in May 2017. 

 

Action by – Joint Heads of the Pension Fund

 

RESOLVED to note the report

89.

Exclusion of the press and public

RESOLVED that:

 

In accordance with Section 100 A (4) of the Local Government Act 1972 the public be excluded from the meeting for the following agenda items, because it is likely that if members of the public were present there would be disclosure to them of exempt information as defined in paragraph 3 of Part 1 of Schedule 12 A to the Act and the public interest in withholding the information outweighs the public interest in disclosing the information to the public.

Minutes:

The Pension Committee  

 

RESOLVED that

 

In accordance with Section 100 A (4) of the Local Government Act 1972 the public should be excluded from the meeting for the following agenda items, because it was likely that if members of the public were present there would be disclosure to them of exempt information as defined in Paragraph 3 of Part 1 of Schedule 12 A to the Act and the public interest in withholding the information outweighed the public interest in disclosing the information to the public.

 

90.

Exempt Minutes

To approve as a correct record the exempt minutes of the meeting held on 12 August 2016.

Minutes:

The exempt minutes of the Pension Committee meeting held on 12 August 2016 were agreed as a correct record and signed by the Chairman.

 

Members requested information on management fees be included within the performance report and considered at future meetings.

 

Action by – Joint Heads of the Pension Fund

 

91.

Minutes of Shadow Oversight Board

To note the minutes of the Shadow Oversight Board from the meetings held on : -

 

Ø  3 August 2016

 

Ø  6 October 2016

Minutes:

The minutes of the Shadow Oversight Board meetings held on 3 August and 6 October 2016 were noted.

92.

Fund Pooling Proposals

To update the committee. 

Minutes:

Mark Spilsbury, Joint Head of the Pension Fund, gave an update on fund pooling proposals.

 

The update was noted.

 

93.

Fund Manager Meetings - October 2016

To note the report.

Minutes:

Graham Burrow, Joint Head of the Pension Fund, gave an update on recent fund manager meetings. The notes of the meetings, including a summary of the key issues, were considered at the meeting.

 

The report was noted.

94.

Cotswold Water Park Trust

To update the committee.

Minutes:

Mark Spilsbury, Joint Head of Pension Fund, updated members on matters relating to Cotswold Water Park.

95.

Report on GMO

To update the committee.

Minutes:

Graham Burrow, Joint Head of the Pension Fund, gave an update on the committee’s decision to disinvest from the Fund’s Investment Manager, GMO.

96.

Financial Markets Update

An update from the Independent Investment Advisor.

Minutes:

Steve Tyson, Independent Pension Advisor, presented information on investment issues and the position of the financial markets. A copy of the slide presentation presented at the meeting is available on request from Democratic Services.

 

The update was noted. 

 

97.

Investment Report - Black Rock

An update from the Black Rock Investment Company.

Minutes:

Christopher Head, Richard Mathieson and Peter Hunt from the Black Rock Investment Company gave a detailed presentation on the Investment Company’s portfolio.