Decision details

The Clwyd Pension Fund Manager, Mr Latham introduced Nick Buckland (Fund Investment Consultant – JLT Group) who gave a presentation on the new statutory DCLG guidance for the ISS. The presentation covered:

·         the change in regulations,

·         the requirement to publish an ISS,

·         Directions by the Secretary of State

·         the content of the ISS requirements including:

o   Requirement to have a wide variety of investments

o   To assess the suitability of Investments

o   Approach to risk

o   pooling and,

o   social, environmental and governance considerations and

o   the exercise of voting rights

Cllr Steve Wilson asked for clarification on boycotts and sanctions. Steve Hibbert commented on the Government response to the consultation (which received over 23,000 responses) noting no significant changes to the draft regulations were made as a result.

            Karen McWilliam (Independent Adviser – Aon Hewitt) gave a presentation to the Committee on the CIPFA/ Aon Guidance on Investment Pooling Governance Principles covering:

·         purpose of the guidance

·         what we need to do to evolve our operations to adapt to the changes.

·         changes to the reporting in the Annual Report.

·         reviewing strategies, policies and processes reflecting the changes in the pooling governance.

·         the requirements of the Joint Committee including:

o   terms of reference and

o   knowledge and skills policy for the decision makers.

Mrs McWilliam confirmed that the reporting from the Operator will need to be comprehensive and fit the individual requirements of each fund. She drew attention to the need for engagement of stakeholders, including employers and scheme members, regarding the implications of pooling for the Fund.

Further discussions centred on the implementation period for the Pool and the details around of the joint committee being set up for Wales. Mr Latham, Clwyd Pension Fund Manager, outlined how an officer working group would be making recommendations to the Joint Committee.

Mr Latham (Clwyd Pension Fund Manager) requested that the Chair agreed to a change in the order of the agenda with Agenda item 15 Pooled Investments be presented now. This was agreed.