Agenda and minutes

Apologies for absence were submitted on behalf of Cllr Lorna McGregor (Wolverhampton City Council); and Mr J Fender (PropertyAdviser).

No notification of substitutes were received for the meeting.

No declarations of interests were made.

[For approval]

Resolved:

1.    That the attendance details for the meeting be corrected by:

i.      Deleting Malcolm Cantello (Trade Union Representative) from the list of members of the Pensions Committee present.

ii.     Adding Cllr Sandra Hevican (Sandwell) to the list of members present.

iii.   Adding Geik Drever, Strategic Director of Pensions and Mike Hardwick, Portfolio Manager to the list of employees present.

iv.   Changing the designation of David Kane to Head of Finance

2.    That subject to resolution 1 above, the minutes of the meeting held on 10 December 2014 be approved as a correct record and signed by the Chair.

[To consider any matters arising from the minutes of the previous meeting held on 10 December 2014]

Referring to Minute 11 on the Pensions Infrastructure Platform (PIP) – Update, Geik Drever, Strategic Director of Pensions reported that the work of the PIP was progressing and that Mike Weston, the PIP’s Chief Executive, was developing the business plan.

[To pass the following resolution:

That in accordance with Section 100A(4) of the Local Government Act 1972 the press and public be excluded from the meeting for the following items of business as they involve the likely disclosure of exempt information on the grounds shown below]

Resolved:

That in accordance with Section 100A(4) of the Local Government Act 1972, the press and public be excluded from the meeting for the following item(s) of business as they involve the likely disclosure of exempt information falling within the paragraphs of Schedule 12A of the Act set out below

[To note the performance and investment activity]

Mark Chaloner, Assistant Director- Investments presented a quarterly report on the performance of the Fund and the implementation of its investment strategy for the period from 1 October 2014 to 31 December 2014.

The Assistant Director- Investments and the Geik Drever, Strategic Director of Pensions responded to various questions from members and observers.

The Strategic Director of Pensions also informed the Sub Committee that a property tour for members and observers would take place on 7 to 9 July 2015. A trustee training event would be arranged for the members on the tour.  Details would be circulated in due course.

Resolved:

That the performance and investment activity for the quarter ended 31 December 2014 be noted.

[To note the global economic and market update]

Mark Chaloner, Assistant Director- Investments presented a report that reviewed the conditions in the global economy and investment markets

The Assistant Director- Investments and Geik Drever, Strategic Director of Pensions, responded to various questions from members and observers.

Resolved:

That the global economic and market update paper prepared by the Fund’s investment adviser, Hymans Robertson, be noted.

[To review the Fund’s fixed interest portfolio]

Geik Drever, Strategic Director for Pensions provided a trustee training session on cashflow matching investment strategy and managing orphan liabilities.

Following the training the Sub Committee was requested to review agenda item 9 on the Fund’s fixed interest portfolio.

The Strategic Director of Pensions and Mark Chaloner, Assistant Director- Investments responded to various questions from members and observers.

Resolved:

1. That the following changes in the allocation to the fixed interest portfolio be approved:

a.      A decrease in the allocation to stabilising fixed interest assets from 10% to 9%.

b.      A decrease in the allocation to return seeking fixed interest assets from 9% to 7%.

c.      The creation of a new cashflow matching fixed interest allocation initially set at 3% (2% from return seeking and 1% from stabilising fixed interest assets) to be put into place specifically to de-risk the Fund’s orphan liabilities, subject to Pensions Committee approval.

2.    That the plans for implementation of the changes both in asset allocation and in management arrangements for the fixed interest portfolio be noted. An update on progress would be made at the Committee’s next meeting.