Issue - meetings
Investment and Funding Update
Meeting: 27/09/2016 - Clwyd Pension Fund Committee (Item 31)
31 Investment and Funding Update 
PDF 107 KB
To provide Committee Members with an update of
investment and funding matters for the Clwyd Pension
Fund.
Additional documents:
- Enc. 1 - 2016/17 Business plan update, item 31
PDF 87 KB
- Enc. 2 - Summary of Fund results from CEM benchmarking, item 31
PDF 211 KB
- Enc. 3 - GAD, section 13 draft report, item 31
PDF 1 MB
- Enc. 4 - delegated responsibilities, item 31
PDF 82 KB
- Enc. 5 - Risk dashboad and register - investments and funding, item 31
PDF 104 KB
Decision:
That the report be noted including the delegated responsibilities.
Minutes:
Debbie Fielder, Pensions Finance Manager, gave an update on the Business Plan including the actuarial valuation which would be covered in more detail by Paul Middleman, asset pooling as covered in the previous agenda and the Investment Strategy Statement (ISS) which has been delayed due to new investment regulations which are yet to be released. She explained that the deadline for preparing the ISS is April 2017 and it is intended to arrange a briefing session for members at the November Committee. Officers have met with consultants to discuss ‘light touch’ review.
Mrs Fielder provided an explanation of the information included in the delegated responsibilities (Appendix 4) confirming cash was still being monitored. The tactical asset group is proving to be working well and benefiting the Fund. She confirmed that the significant risks in this area relate to the actuarial Valuation and Flightpath and would be covered in the update from Paul Middleman.
Anthony Kershaw, Fund Investment Consultants – JLT Group, provided an overview of the recent CEMs survey looking at data from 2013/14/15 with a mix of public and private sector schemes. He explained that it shows that, whilst the Fund does not compare favourably in relation to investment management costs, it achieved a very high ‘net value-add’ relative to other funds in the LGPS.
Steve Hibbert questioned the costs within the report and Debbie Fielder was able to confirm the Clwyd Pension Fund costs were accurate. A discussion then took place in relation to how Clwyd Pension Fund might benefit from pooling compared to other LGPS funds due to the complexity of the investment arrangements in the Fund.
Paul Middleman, Fund Actuary – Mercers, then went on to introduce the Government Actuary’s Section 13 Report explaining its purpose was to identify any funding issues needing to be addressed by LGPS funds by highlighting areas of risk such as inappropriately low contributions or high risk investment strategies. Mr Middleman reported under the “dry run” report based on the 2013 valuation that Clwyd Pension Fund received green flags for all measures.
Mark Owen queried whether the Clwyd Pension Fund membership data had been submitted on time and Mr Middleman confirmed it had.
RESOLVED:
That the report be noted including the delegated responsibilities.