Agenda and minutes

The Pension Board is asked to appoint a Chair of the Pension Board.

The Committee Officer confirmed that the meeting was quorate with two Members present, one Employer representative and one Employee representative.

She then informed the Board that following the resignation of Councillor Phil Jones from the Board, a new Chair would have to be elected for the remainder of the 2015 - 2018 term and invited nominations.

RESOLVED –

THAT Councillor Richard Olszewski be appointed as Chair of the Pension Board for the remainder of the 2015 - 2018 term.

Apologies for absence were received from Paul Dunphy (Employee Representative).

Vinothan Sangarapillai, Employee representative, declared for the sake of transparency that he was a member of the pension scheme.

There were no announcements.

There was no urgent business.

To approve and sign the minutes of the Pension Board meeting held on 16^th October 2017.

RESOLVED –

THAT the minutes of the meeting held on 16^th October 2017 be approved and signed as a correct record.

Report of the Executive Director Corporate Services

The Pension Board has responsibility for assisting the Pension Committee in ensuring compliance with the Scheme Regulations, other legislation relating to governance and administration, and the requirements of the Pension Regulator. The Pension Board must also ensure the effective and efficient governance and administration of the scheme. This report summarises the items presented and decisions made at the Pension Committee meetings on 29 November 2017 and 8 March 2018.

Consideration was given to a report of the Executive Director Corporate Services.

The Head of Treasury and Financial Transactions presented the report which summarised the items presented and decisions made at the Pension Committee meetings on 29^th November 2017 and 8^th March 2018 and outlined the key aspects.

The Board noted in particular that at its meeting on 29^th November 2017, the Pension Committee received a report on carbon footprint data from each of the Fund’s equity managers and had discussed approaches of non-equity managers. Board Members also noted that there were three scopes for carbon footprint:

a)    Burning fossil fuel

b)    indirect, e.g. using energy in manufacturing

c)    everything else – this was the community as a whole which produced the highest greenhouse gas emissions.

RESOLVED –

THAT the contents of the report be noted.

Report of the Executive Director Corporate Services

The Pension Board has responsibility for assisting the Pension Committee in ensuring compliance with the Scheme Regulations, other legislation relating to governance and administration, and the requirements of the Pension Regulator. The Pension Board must also ensure the effective and efficient governance and administration of the scheme. This report recaps on the global property investment with Partners Group and makes recommendations for investment in their next investment vehicle, the Partners 2017 Fund.

This report has an appendix which contains information exempt within the meaning of Schedule 12A to the Local Government Act 1972 and is not for publication. The appendix has therefore been circulated to Committee Members only.

If the Board wishes to discuss the contents of a closed exempt appendix it may pass the proposed resolution identified at the end of the document to exclude members of the public and the press from the proceedings for that discussion

Consideration was given to a report of the Executive Director Corporate Services.

The Head of Treasury and Financial Transactions presented the report which recapped on the global property investment with Partners Group and made recommendations for investment in their next investment vehicle, the Partners 2017 Fund.

It was noted that there was a confidential appendix to this report containing confidential information relating to this item, which Board Members had read and would take into account when considering this item.

The Board noted the Pension Fund had a global property mandate with partners Group which included two investment funds, the Euro fund and the USD fund. Both funds had performed well and were broadly achieving their performance objectives. The Pension Committee at its meeting on 29^th November 2017, agreed to commit £70m to the PG RES 17 fund and delegated authority to the Executive Director Corporate Services to conclude all matters relating to the award of this investment.

RESOLVED –

THAT the contents of the report be noted.

Report of the Executive Director Corporate Services

The Pension Board has responsibility for assisting the Pension Committee in ensuring compliance with the Scheme Regulations, other legislation relating to governance and administration, and the requirements of the Pension Regulator. The Pension Board must also ensure the effective and efficient governance and administration of the scheme. This report updates the employer register for all the admitted bodies in the Pension Fund and relevant data for the Committee to review in light of their funding positions and scheme status

This report has an appendix which contains information exempt within the meaning of Schedule 12A to the Local Government Act 1972 and is not for publication. The appendix has therefore been circulated to Committee Members only.

If the Board wishes to discuss the contents of a closed exempt appendix it may pass the proposed resolution identified at the end of the document to exclude members of the public and the press from the proceedings for that discussion

Consideration was given to a report of the Executive Director Corporate Services.

The Head of Treasury and Financial Transactions presented the report which updated the employer register for all the admitted bodies in the Pension Fund and relevant data for the Committee to review in light of their funding positions and scheme status. It was noted that the Employer Register was an annual report to the Pension Committee which included 30 scheme employers, charities and organisations which take on Council Services. The report monitored the risks they might impose.

The Pension Board noted that the report contained a Part II appendix which presented the employer register.  This was not for publication and in order for Committee Members to discuss the content of the restricted appendices, it passed the following resolution:

RESOLVED –

THAT the press and public be excluded from the proceedings of the Board on 14^th March 2018 during consideration of item 9 on the agenda on the grounds that it is likely, in view of the nature of the business to be transacted, that were members of the public to be present, there would be disclosure of exempt information as defined in Schedule 12A to the Local Government Act 1972 and that the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

Specifically -

Publicity in respect of item 9 would be likely to lead to the disclosure of information relating to the financial or business affairs of any particular person (including the authority holding that information) by virtue of Category 3 of Schedule 12A of the Local Government Act 1972.

PART II

The Pension Board discussed the contents of the confidential appendix to the report as detailed in the restricted part of these minutes.

PART I

Having discussed the content of the confidential appendix, the Pension Board returned to open session.

RESOLVED –

THAT the contents of the report be noted.

Report of the Executive Director Corporate Services

The Pension Board has responsibility for assisting the Pension Committee in ensuring compliance with the Scheme Regulations, other legislation relating to governance and administration, and the requirements of the Pension Regulator. The Pension Board must also ensure the effective and efficient governance and administration of the scheme. This report reviews the proxy voting carried out by the Pension Fund during the calendar year to December 2017. Advisory services are provided by Pensions & Investment Research Consultants Ltd (PIRC).

Consideration was given to a report of the Executive Director Corporate Services.

The Head of Treasury and Financial Transactions presented the report which reviewed the proxy voting carried out by the Pension Fund during the calendar year to December 2017. It was noted that advisory services were provided by Pensions & Investment Research Consultants Ltd (PIRC).

Councillor Olszewski referred to page 98 of the agenda and the annual review of shareholder resolutions, and suggested that it might be an opportunity to use these votes to raise issues relating to the Companies’ views on carbon foot printing.

It was noted that the pension Committee reviewed voting policy annually.

Councillor Olszewski suggested that Council procurement and social values could be looked at in a similar way. It was noted that the Pension Committee was duty bound to consider social values clauses and the Local Pension Fund Forum (LAPFF) could be asked to look at this.

            ACTION BY: Executive Director Corporate Services

RESOLVED –

THAT the contents of the report be noted.

Report of the Executive Director Corporate Services

The Pension Board has responsibility for assisting the Pension Committee in ensuring compliance with the Scheme Regulations, other legislation relating to governance and administration, and the requirements of the Pension Regulator. The Pension Board must also ensure the effective and efficient governance and administration of the scheme. This report provides a quarterly update on developments at the London CIV in creating sub-funds for the spectrum of asset classes, on-boarding of assets and development of the CIV’s staff resource. Progress with the London CIV contributes to the Government’s pooling agenda and drive to reduce costs in the LGPS.

This report has an appendix which contains information exempt within the meaning of Schedule 12A to the Local Government Act 1972 and is not for publication. The appendix has therefore been circulated to Committee Members only.

If the Board wishes to discuss the contents of a closed exempt appendix it may pass the proposed resolution identified at the end of the document to exclude members of the public and the press from the proceedings for that discussion

Consideration was given to a report of the Executive Director Corporate Services.

The Head of Treasury and Financial Transactions presented the report which provided a quarterly update on developments at the London CIV in creating sub-funds for the spectrum of asset classes, on-boarding of assets and development of the CIV’s staff resource. It was noted that progress with the London CIV contributed to the Government’s pooling agenda and drive to reduce costs in the LGPS.

The Pension Board noted that the report set out ongoing work to appoint several managers (liquid and illiquid multi asset credit), listed training that had happened in the last quarter and included appointments and departures. It included an interim governance review and a summary of interim findings that Willis Towers Watson had reviewed. The final report would be received by the London CIV board very shortly.

The governance review was carried out by Willis Towers Watson in late 2017 and highlighted the need to clarify the purpose of LCIV and establish new governance arrangements. Consultation was currently underway with Shareholders with recommendations to be made to the Leaders’ Committee in March. Three key areas of the review were:

•      Governance arrangements with Shareholders

•      Formalisation of relationship between LCIV and Clients

•      Level of Investment discretion granted to the LCIV

LCIV would consult with Funds during Q1 2018 which included the setting up of an oversight committee consisting of 6 treasurers and 6 Chairs of Pension Committees, which would include the Chair of Camden’s Pension Committee, and an SLA regarding the level of engagement with LCIV. There were three types of investment mandates being proposed

-       low cost (passive)

-       basic (blended mandates with Funds selecting fixed proportions in each one)

-       enhanced (a mix of the above).

The Chair referred to the first bullet point on page 109 and asked what the definition of “discretion” was. The Head of Treasury and Financial Transactions replied that some funds were happy to be passive, whereas Camden’s Fund preferred risk/return. Camden was confident in its approach and always carried out due diligence.

The Pension Board noted that 50% of Camden’s Fund was invested with the LCIV. The performance of LCIV was slow at first but was improving as it now had a number of sub-funds and was building on its assets. It was also developing its staff resources.

The Pension Board noted that the report contained a Part II appendix which presented the London CIV Governance Review Interim Findings.  This was not for publication and in order for Board Members to discuss the content of the restricted appendices, it passed the following resolution:

RESOLVED –

THAT the press and public be excluded from the proceedings of the Board on 14^th March 2018 during consideration of item 11 on the agenda on the grounds that it is likely, in view of the nature of the business to be transacted, that were members of the public to be present, there would be disclosure of exempt information as defined  ...  view the full minutes text for item 11.

Report of the Executive Director Corporate Services

The Pension Board has responsibility for assisting the Pension Committee in ensuring compliance with the Scheme Regulations, other legislation relating to governance and administration, and the requirements of the Pension Regulator. The Pension Board must also ensure the effective and efficient governance and administration of the scheme. This report concludes the search for a diversified growth fund manager for the temporary investment of the proceeds of the redemption from the hedge fund mandate before a suitable infrastructure investment opportunity is established. The report updates Members on the appointment of Ruffer LLP to the interim diversified growth fund mandate.

Consideration was given to a report of the Executive Director Corporate Services.

The Head of Treasury and Financial Transactions presented the report which concluded the search for a diversified growth fund manager for the temporary investment of the proceeds of the redemption from the hedge fund mandate before a suitable infrastructure investment opportunity was established. It updated Members on the appointment of Ruffer LLP to the interim diversified growth fund mandate.

RESOLVED –

THAT the contents of the report be noted.

There was no urgent business.

The provisional dates for meetings of the Pension Board due to be held in the 2018 -19 Municipal Year are set out below:

Monday, 15th October 2018

Wednesday, 13th March 2019

Dates for all meetings being held during the 2018-19 Municipal Year will be confirmed at the Statutory Council meeting in May 2018.

The provisional dates for meetings of the Pension Board due to be held in the 2018 -19 Municipal Year were noted as set out below:

Monday, 15th October 2018

Wednesday, 13th March 2019

The Pension Board noted that dates for all meetings being held during the 2018-19 Municipal Year will be confirmed at the Statutory Council meeting in May 2018.

The Pension Board noted that a training session would be arranged to be held in June for Pension Committee Members to which Pension Board Members would be invited.

            TO NOTE: All