Agenda, decisions and minutes

To receive any Declarations and advise Members accordingly.

Councillors Stephen Wilson and Huw Llewellyn Jones declared a personal interest as members of the Clwyd Pension Fund for the following item:

Item 4 – Pooling Investments in Wales 

Karen McWilliam also declared a personal interest as an employee of Aon Hewitt who may submit a tender bid to become the CIV platform provider under Item 4.   Joe Peach declared the same personal interest as he will become employed by Aon Hewitt in July 2016. 

Paul Middleman declared a personal interest as an employee of Mercers who may submit a tender bid to become the CIV platform provider under Item 4.   

That the press and public be excluded for the remainder of the meeting for the following item by virtue of exempt information under paragraph(s) 14 of Part 4 of Schedule 12A of the Local Government Act 1972 (as amended).

To receive a verbal update from the Clwyd Pension Fund Manager.

That the update be received and further meetings be arranged as required to

make key decisions.

The Clwyd Pension Fund Manager gave a verbal update on Pooling Investments in Wales.  He provided background information and context and reported on developments concerning Wales, the LGPS as a whole, and the Clwyd Pension Fund (CPF). 

The Clwyd Pension Fund Manager reported on the current position and advised that the Government had agreed for work to continue on a Wales Pool.  He referred to the recent letter from the Minister for Local Government to Welsh funds which referred to the unique culture, politics and regulation, and required a ‘full assurance that the final proposals in July would satisfactorily meet all other criteria’.  The Clwyd Pension Fund Manager commented on the implications for the Clwyd Pension Fund and invited Mr Harkin (Fund Investment Consultant – JLT Group) to give a presentation on  Local Government Pension Scheme Asset Pooling – All Wales.  The main points of the presentation, which highlighted some of the governance and investment risks to be managed, were as follows:

·                     setting investment strategy – impact of decisions

·                     trade off between risk and return

·                     Risk – value at risk definition

·                     how we arrived at the current position

·                     CPF’s current investment strategy

·                     CPF’s current asset allocation compared to rest of All Wales Pool

·                     challenge of delivering cost savings

·                     establishing a governance framework

·                     key areas to be clarified

The Chair thanked Mr Harkin for his detailed presentation and invited Mr Potter, Hymans Robertson LLP, to give a presentation on the proposed asset pooling within Wales.  Mr. Potter provided an update on the Wales project.  The presentation covered the following main points:

·         background

·         Governance and structure issues

·         Investment pools

·         timescales

·         areas for inclusion in July submission

·         contract award for CIV operator

·         transition of investments into the pool 

The Chair thanked Mr Potter for his presentation and invited the

Committee to raise questions. 

During discussion Mr Harkin and Mr Potter, responded in detail to the comments and queries put forward concerning governance framework, appointments and roles, costs, fees, risk management, and timescales.  

RESOLVED: 

That the update be received and further meetings be arranged as required to

make key decisions.

There were no members of the press or public in attendance.