Agenda item

(a)          That the recommended and revised Strategic Asset Allocation and Conditional Asset Allocation ranges be approved;

(b)          That the amendments (shown in bold) to the Fund’s Delegation of Functions to Officers in Appendix 1 be approved as follows:

(i)         The addition of a new delegation of responsibility for decisions relating to the ‘best ideas’ section of the Tactical portfolio to the Pension Fund Manager, having regard to the advice of JLT with ongoing monitoring by both the Pension Advisory Panel and the Pension Fund Committee; and

(ii)        Two further clarification amendments

(c)        That appropriate objectives and monitoring be developed in relation to the new ‘best ideas’ section of the Tactical portfolio; and

(d)       That the existing Delegation of Functions which already provides powers for officers to implement the strategy, including the appointment of suitable investment managers, be subject to final ratification by the Pension Fund Committee.  

Mr. John Finch, Investment Consultant - JLT Group, introduced a report on the recommendations for changes to the Investment Strategy for the Clwyd Pension Fund.

Mr. Finch provided background information and advised that the current investment strategy was as a result of the previous review undertaken in 2010 and the introduction of the ‘Flightpath’ mandate.  The findings from the further investment strategy review undertaken in 2014 concluded that no radical re-organisation of the current investment structure was required and the portfolio was well diversified with the introduction of the de-risking framework.  The Flightpath was well designed and its implementation ahead of the majority of the LGPS funds.  However, there were a number of further opportunities to reduce risk without sacrificing return which would necessitate four main areas of change and these were detailed in the report.   The changes, based on the recommended allocation for the Tactical portfolio, meant that expected return could be maintained with risk being reduced.  Mr. Finch drew attention to the revised Strategic Asset Allocation and Conditional Asset Allocation ranges which were also detailed in the report.

Mr. John Finch, Investment Consultant - JLT Group, introduced a report on the recommendations for changes to the Investment Strategy for the Clwyd Pension Fund.

Mr. Finch provided background information and advised that the current investment strategy was as a result of the previous review undertaken in 2010 and the introduction of the ‘Flightpath’ mandate.  The findings from the further investment strategy review undertaken in 2014 concluded that no radical re-organisation of the current investment structure was required and the portfolio was well diversified with the introduction of the de-risking framework.  The Flightpath was well designed and its implementation ahead of the majority of the LGPS funds.  However, there were a number of further opportunities to reduce risk without sacrificing return which would necessitate four main areas of change and these were detailed in the report.   The changes, based on the recommended allocation for the Tactical portfolio, meant that expected return could be maintained with risk being reduced.  Mr. Finch drew attention to the revised Strategic Asset Allocation and Conditional Asset Allocation ranges which were also detailed in the report.

RESOLVED:

(a)          That the recommended and revised Strategic Asset Allocation and Conditional Asset Allocation ranges be approved;

(b)          That the amendments (shown in bold) to the Fund’s Delegation of Functions to Officers in Appendix 1 be approved as follows:

(i)         The addition of a new delegation of responsibility for decisions relating to the ‘best ideas’ section of the Tactical portfolio to the Pension Fund Manager, having regard to the advice of JLT with ongoing monitoring by both the Pension Advisory Panel and the Pension Fund Committee; and

(ii)        Two further clarification amendments

(c)        That appropriate objectives and monitoring be developed in relation to the new ‘best ideas’ section of the Tactical portfolio; and

(d)       That the existing Delegation of Functions which already provides powers for officers to implement the strategy, including the appointment of suitable investment managers, be subject to final ratification by the Pension Fund Committee.