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Agenda and minutes

Venue: County Hall, Exeter

Contact: Stephanie Lewis  Email: stephanie.lewis@devon.gov.uk

Items
Note No. Item

12.

Minutes pdf icon PDF 98 KB

Minutes of the meeting held on 24 June 2016, attached.

 

Minutes:

RESOLVED that the minutes of the meeting held on 24 June 2016 be signed as a correct record.

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13.

Devon Pension Board pdf icon PDF 95 KB

At the last meeting, the Committee’s attention was drawn to a number of specific questions/suggestions made by the Devon Pension Board at its meeting on 14 April 2016 (repeated below, minutes attached).

 

In respect thereof the Chairman accepted and emphasised at the last meeting (minute 3 refers) the ‘importance of Members attending training to ensure that they were fully equipped to consider the business of the Committee, and urged all Members of the Committee to make attending these sessions a priority’ and the suggestion relating to the Risk Register is taken into account in the report on the Devon Pension Fund Risk Register to be considered at this meeting under item 10.

 

The Committee may wish to consider if any further action is required on any of the Devon Pension Board suggestions, particularly in relation to Minute 5.

 

Minute 5 (The Role of a Member: Impartiality)

Minute 9 (Devon Pension Fund Risk Register)

Minute 11 (Members’’ Training )

Minutes:

The Committee further considered suggestions previously made by the Devon Pension Board relating in particular to the adoption of a statement similar to that accepted by the Board and other Councils, to visibly demonstrate its status as an impartial decision maker, recognising the need to avoid conflicts of interest.

 

It was MOVED by Councillor Parker Delaz Ajete, SECONDED by Councillor Edgell and

 

RESOLVED that the proposed statement of impartiality enshrined in Minute 5 of the Devon Pension Board of 14 April 2016 be acknowledged subject to clarification of the wording at the next meeting. 

 

 

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14.

Pension Fund Annual Report and Accounts 2015/16 pdf icon PDF 60 KB

Report of the County Treasurer (CT/16/73), attached.

Additional documents:

Minutes:

The Committee considered the report of the County Treasurer (CT/16/73) together with the Annual Report and Accounts, summarising the performance of the Fund’s external managers, including stewardship activity and the market outlook, followed by the Statement of Accounts.

 

Mr Shaw from Grant Thornton attended for this item and advised there were no major issues with the Pension Fund accounts and that the draft financial statements had been prepared to a high standard.

 

It was MOVED by Councillor Channon, SECONDED by Ms Healy and

 

RESOLVED that the Pension Fund Annual Report and Accounts for 2015/16 be adopted.

 

[NB: In accordance with Standing Order 32(4) Councillor Edgell requested that his abstention from voting on this decision be recorded.]

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15.

LGPS Pooling of Investments pdf icon PDF 255 KB

Report of the County Treasurer (CT/16/74), attached.

Minutes:

The Committee received the report of the County Treasurer (CT/16/74) on the significant work undertaken to set up the Brunel Pension Partnership which comprised ten LGPS Funds.  A joint submission from the ten Brunel funds had been made in February 2016, with a more detailed response submitted in July 2016 outlining the business case.  Work continued on developing a more detailed final business case for each of the ten funds to consider in November/December 2016.

 

It was MOVED by Councillor Hosking, SECONDED by Councillor Parker Delaz Ajete and

 

RESOLVED that

 

(a)     progress on the Brunel Partnership full business case be noted;

 

(b)    the County Treasurer, in consultation with the Chairman, be delegated to write to the Department of Communities and Local Government raising concerns around the delay in the laying of the new Investment Regulations;

 

(c)     in order to consider the full business case of the Brunel Partnership, the next meeting be postponed from 18 November 2016 until Friday 2 December 2016 at 10.00am.

 

 

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16.

Actuarial Valuation and Section 13 Report pdf icon PDF 2 MB

Report of the County Treasurer (CT/16/75), attached.

Minutes:

The Committee received and noted the report of the County Treasurer (CT/16/75) on the 2016 valuation which would set employer contribution levels for the financial years 2017/18, 2018/19 and 2019/20. In addition, a Section 13 valuation would be carried out by the Government Actuary’s Department (GAD) which reviewed whether funding valuations and employer contribution rates had been set to meet targets and objectives.

 

 

                    

 

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17.

Investment Management Report pdf icon PDF 118 KB

Report of the County Treasurer (CT/16/76), attached.

Minutes:

The Committee received and noted the Report of the County Treasurer (CT/16/76) on the current Pension Fund value and asset allocation against target.  Following the EU Referendum there had been a fall of the value of the pound and therefore an increase in the value of the Fund’s overseas assets, resulting in an increase of £162,000,000 over the last quarter.  The allocation to each asset class remained within 2.5% of the target allocation.   The Fund had achieved an absolute return of 4.6% for the quarter which was ahead of the strategic benchmark of 4.5%.         

 

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18.

Long Term Investment Performance and Strategic Review pdf icon PDF 124 KB

Report of the County Treasurer (CT/16/77), attached.

Minutes:

The Committee considered the Report of the County Treasurer (CT/16/77) examining the Fund’s longer term performance and, in particular, why performance over the past 10 years was below the average achieved by LGPS funds in total. The Report also proposed the commissioning of a strategic asset allocation review, conducted by external consultants who would assess the appropriate strategic asset allocation, including the split between ‘growth’ assets and ‘fixed interest’ type assets, geographical allocations and currency hedging issues.

 

It was MOVED by Councillor Edgell SECONDED by Councillor Hosking and

 

RESOLVED that the commissioning of a strategic asset allocation review, using the South West investment consultancy framework, be approved.

 

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19.

Pension Fund Risk Register pdf icon PDF 227 KB

Report of the County Treasurer (CT/16/78), attached.

 

Minutes:

The Committee received and noted the Report of the County Treasurer (CT/16/78) highlighting the key risks in relation to the Devon Fund, the current processes in place to mitigate the risk, and the planned improvements in place to provide further assurance.  The Report incorporated the risk register of both the Investments Team and Peninsula Pensions.

 

 

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20.

Applications for Admitted Body Status

The following application for admitted body status has been approved since the last meeting of the Committee:

 

·         Barnardos have won a contract with Plymouth City Council for the provision of children centre services.  Eight members of staff have transferred to Barnardos on 1 September 2016 from the previous provider 4Children.

Minutes:

The Committee noted the action of the County Treasurer in approving an application for admitted body status, approved under delegated powers, from Barnardo’s in respect of its new contract with Plymouth City Council for the provision of children centre services. 

 

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21.

Committee Training

(a)   a training session is being held in the afternoon following the Committee meeting.  This will look at long term performance and the objectives of a strategic investment review.

(b)   a joint briefing event with the Cornwall, Dorset and Somerset Committees is being held on Friday 7 October 2016 at Exeter Racecourse.  This will comprise a briefing and opportunity for comment on the full business case for the Brunel Pension Partnership before it is presented to the Committee in November.

Minutes:

The County Treasurer reported that a joint briefing event with Cornwall, Dorset and Somerset Committees would take place on Friday 7 October 2016 at Exeter Racecourse, which would comprise of a briefing and opportunity for comment on the full business case for the Brunel Pension Partnership before it was presented to the Committee in December.

22.

Dates of Future Meetings

The Committee will meet at 10.00am on Friday 18 November 2016 and Friday 24 February 2017.

Minutes:

Friday 2 December 2016 at 10.00am and Friday 24 February 2017 at 10.00am.

 


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