Agenda and minutes

Minutes of the meeting held on 15 June 2018, attached

RESOLVED that the Minutes of the meeting held on 15 June 2018 be signed as a correct record.

Items which in the opinion of the Chairman should be considered at the meeting as matters of urgency.

There was no item raised as a matter of urgency.

Minutes of the Devon Pension Board meeting held on 23 April 2018, attached

The Committee received the minutes of the Board held on 23 April 2018 and noted that issues raised relating to the risk register, investment strategy and training plan had been addressed in reports on the agenda at this and the previous meeting.

Minutes of the Brunel Oversight Board meeting held on 18 July 2018, attached

The Committee received the Minutes of the Brunel Oversight Board meeting held on 18 July 2018 and noted that the Business Plan, staffing position and resourcing remained under review.

Report of the County Treasurer (CT/18/64), attached

The Committee considered the Report of the County Treasurer (CT/18/64) on the Pension Fund Annual Report and Accounts for 2017/18 which contained the statement of accounts together with other information about the Fund’s performance during 2017/18. The Statement of Accounts had been audited and approved by the Council’s External Auditors and a copy of the Audit Findings Report was also attached to the Report.

A representative of Grant Thornton, the External Auditors attended the meeting at the Committee’s invitation and answered Members’ questions relating to the positive findings, the good standards achieved and reflected in the Accounts with reliable, accurate and timely information.

Members commended the Officers from Peninsula Pensions and the Council’s Investment Team for their work and the positive audit findings. 

It was MOVED by Councillor Atkinson, SECONDED by Councillor Parker-Delaz-Ajete and

RESOLVED that the Pension Fund Annual Report and Accounts for 2017/18 be approved. 

Report of the County Treasurer (CT/18/66), attached

The Committee considered the Report of the County Treasurer (CT/18/66)  on the Risk Register (attached at Appendix 1 to the Report) which highlighted the key risks in relation to the Pension Fund, the current processes in place to mitigate risk, and the planned improvements to provide further assurance. It incorporated the risk register of both the Investment Team and Peninsula Pensions.

Members referred to the uncertainties relating to ‘Brexit’ reflected in the Register.  Members also noted recent serious data security breaches of major companies and asked that a further review should be undertaken by Officers in relation to risks associated by any IT breach of the Peninsula Pensions data.   

It was MOVED by Councillor Bloxham, SECONDED by Councillor O’Dwyer and

RESOLVED that, subject to a review of IT security in relation to Peninsula Pensions, the Pension Fund Risk Register and additional action proposed be approved.  

Report of the County Treasurer (CT/18/65) attached

The Committee considered the Report of the County Treasurer (CT/18/65) on the Fund value

and asset allocation, performance against the benchmark, budget forecast monitoring and

cash management. The Committee also received the Local Authority Pension Fund Forum (of which the Devon Fund was a Member) Quarterly Engagement Report detailing its engagement activity with companies.   

The Fund value at 30 June 2018 stood at £4,239.6 million, an increase of around £153

million over the quarter.

Members referred to relative global equity investment and weightings and the approach to infrastructure and local venture investments, which would be reviewed by Brunel.    

It was MOVED by Councillor Bloxham, SECONDED by Councillor Parker-Delaz-Ajete and

RESOLVED

(a) that the Investment Management Report be noted; and

(b) that compliance with the 2018/19 Treasury Management Strategy be noted.

Report of the County Treasurer (CT/18/67), attached

The Committee considered the Report of the County Treasurer on the Pension Board Membership and Employer and Fund Member representatives and the appointment process regarding vacancies/replacements to be carried out early in the new year.

It was MOVED by Councillor Bloxham, SECONDED by Councillor Channon and

RESOLVED that the appointment process to fill places on the Pension Board and the place for the Other Employer representative on the Investment and Pension Fund Committee from May 2019 be noted.

The following applications for admitted body status have been approved since the last meeting of the Committee:

(a) Delt - Print Services, Plymouth City Council transferred their print and document service to DELT. 2 scheme members transferred on 1 July 2018.

(b) Delt - Payroll Services, Plymouth City Council transferred their payroll service to DELT on 1 May 2018, 21 scheme members involved.

(Note: Plymouth City Council and DELT have agreed a passthrough arrangement for all contracts moving across although all need separate admission agreements and will be on a closed arrangement).

The Committee noted the following applications for admitted body status which had been approved since the last meeting of the Committee:

(a) Delt - Print Services, Plymouth City Council transferred their print and document service to

DELT. Two scheme members had transferred on 1 July 2018; and

(b) Delt - Payroll Services, Plymouth City Council transferred their payroll service to DELT on 1 May 2018, 21 scheme members had been involved in this transfer.

In accordance with the Annual Training Plan approved at the last meeting of the Committee, the following training and engagement events have been arranged for the Committee and Pension Board:

(a) Devon Pension Fund Training Day – Thursday 18th October, 10am to 4pm at the Buckerell Lodge Hotel.

(b) Brunel Pension Partnership Engagement Event – Wednesday 7th November 10am to 2pm at Sandy Park

In accordance with the Annual Training Plan approved at the last meeting the Committee noted the following training and engagement events for Committee and Pension

Board members:

(a) Devon Pension Fund Training Day – Thursday 18th October, 10am to 4pm at the Buckerell Lodge Hotel, Exeter; and

(b) Brunel Pension Partnership Engagement Event – Wednesday 7th November 10am to 2pm at Sandy Park, Exeter.

Friday, 16 November 2018 and Friday 22 February 2019 at 10.30am

Friday, 16 November 2018 and Friday 22 February 2019 at 10.30am

Recommendation: that the press and public be excluded from the meeting for the following items of business under Section 100(A)(4) of the Local Government Act 1972 on the grounds that they involve the likely disclosure of exempt information as defined in Paragraph 3 of Schedule 12A of the Act, information relating to the financial or business affairs of an individual other than the County Council and, in accordance with Section 36 of the Freedom of Information Act 2000, by virtue of the fact that the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

RESOLVED that the press and public be excluded from the meeting for the following items

of business under Section 100(A)(4) of the Local Government Act 1972 on the grounds that they involve the likely disclosure of exempt information as defined in Paragraph 3 of Schedule 12A of the Act, information relating to the financial or business affairs of an individual other than the County Council and, in accordance with Section 36 of the Freedom of Information Act 2000, by virtue of the fact that the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

Report of the County Treasurer (CT/18/68), attached

(An item taken under Section 100A(4) of the Local Government Act 1972 during which the

press and public were excluded, no representations having been received to such

consideration under Regulation 5(5) of the Local Authorities (Executive Arrangements)

(Meetings and Access to Information) (England) Regulations 2012).

The Committee noted the Report of the County Treasurer (CT/18/68) on the performance of the emerging markets mandate, and the action that had been taken since the last meeting of the Committee by the County Treasurer in consultation with the Chair.

Report of the County Treasurer (CT/18/69), attached

(An item taken under Section 100A (4) of the Local Government Act 1972 during which the

press and public were excluded, no representations having been received to such

consideration under Regulation 5(5) of the Local Authorities (Executive Arrangements)

(Meetings and Access to Information) (England) Regulations 2012).

The Committee considered the Report of the County Treasurer (CT/18/69) on current progress in the establishment of Brunel’s investment portfolios, including the reserved matters requests issued, progress on private markets considering the position with Aviva’s mandate, and the transition of the Fund’s passive equity assets.

It was MOVED by Councillor Bloxham, SECONDED by Councillor O’Dwyer and

RESOLVED that the reserved matters requests determined over the last three months, progress on the transition of assets to the Brunel Pension Partnership Ltd, and the novation of the current property mandate contract from Aviva Investors to La Salle Investment be noted.