Issue - meetings

(a)       The Committee ratified the decision to invest in the Wales Pension Partnership Global Equity Opportunities Fund which will be funded from the current active global equity mandate with Investec Asset Management.

(b)       In accordance with the reserved matter requirements of the IAA regarding the timing of the transition, the Committee agreed that these assets should be transitioned in the coming months having regard to the advice of a specialist transition manager.

(c)        The Committee delegated the specific timing of the transition to the Clwyd Fund officers on the Officer Working Group (OWG) after considering advice from that specialist transition manager.

Mr Latham explained that the WPP has agreed two global equity mandates to the platform that the Fund can invest in. After consultation with the Fund’s consultants, it is recommended that the Fund’s allocation is transferred to the Global Opportunities Fund and that this will come at a lower cost; the report gives further information regarding this decision made.

Mr Hibbert declared that he was pleased with the first proposal that the Committee has seen as it is a win-win because they will be saving money also. However, he asked what would happen if the next proposal is a lose-lose situation?  Mr Latham said if assets were put at risk or underperforming then he would bring this to the Committee’s attention.  

Mrs McWilliam added that MHCLG made it clear that all of the assets should be pooled despite the fact that some funds would lose out, on the basis it will be a gain overall. There is no guarantee of that however.  She said that MHCLG are currently looking to rewrite the pooling guidance.

Mr Harkin stated that the pool shouldn’t dictate the Fund’s investment strategy. The pool should provide enough options for the Fund. The key thing is that the pool needs to be able to deliver the overall strategy as this is the biggest contributor to returns and risk.

Mr Hibbert said that the Fund should always weigh up the advantages and disadvantages of moving money into the pool. This particular case was a good decision for the Fund but it would be difficult for the Committee to agree to an investment with the pool that will provide a lower expected return for a higher cost. Mr Everett commented that this needs to be done on a case by case basis.

RESOLVED:

(a)       The Committee ratified the decision to invest in the Wales Pension Partnership Global Equity Opportunities Fund which will be funded from the current active global equity mandate with Investec Asset Management.

(b)       In accordance with the reserved matter requirements of the IAA regarding the timing of the transition, the Committee agreed that these assets should be transitioned in the coming months having regard to the advice of a specialist transition manager.

(c)        The Committee delegated the specific timing of the transition to the Clwyd Fund officers on the Officer Working Group (OWG) after considering advice from that specialist transition manager.