Issue - meetings

[To present an update on the forecast out-turn for the year against operating budgets and quarterly accounts as at the end of December 2018]

An updated report was tabled.  Jill Davys, Assistant Director – Investments and Finance reported on the key highlights from the update report on the forecast outturn for the year against operating budgets and quarterly accounts as at the end of December 2018 for the West Midlands Pension Fund and the West Midlands Integrated Transport Authority Pension Fund.

The Chair noted the breadth of work undertaken by the Committee and the Fund as highlighted in the committee reports presented. He also said that the Fund had been an industry leader in taking steps to report all its investment management costs but not all adopted the same practice, leading to some unfair comparisons.

Malcolm Cantello (Unison) asked whether the Fund’s Investment Managers were complying with the Transparency Code. Jill Davys, Assistant Director - Investments and Finance reported that managers that work with LGPS Central had signed up to the Code and where the Fund goes out to tender it is a requirement for appointment. LGPS Central Limited was also a signatory to Code.  Work was ongoing to collate information for the 2019 year-end, with a notable increase in return rates as managers improved reporting. Malcolm Cantello welcomed that the investment managers were co-operating on this matter.

Resolved:

1.    That it be noted that the quarterly accounts for the period ending 31 December 2018 show that:

-       the value of West Midlands Pension Fund at this date was £15.1 billion, a decrease of £281.8 million from 31 March 2018.

-       the value of West Midlands Integrated Transport Authority Pension Fund at this date was £491.5 million, a slight decrease from the £492m million as at 31 March 2018.

2.    That it be noted that the West Midlands Pension Fund forecast outturn for the year against operating budgets as at the end of December 2018 is an underspend of £4million primarily attributable to lower investment management costs.