Agenda and minutes

Pensions Committee - Wednesday 24 July 2019 6.30 pm

Venue: Committee Room (B6) - Lambeth Town Hall, Brixton, London, SW2 1RW. View directions

Contact: David Rose, Telephone 020 7926 1037, Email: drose@lambeth.gov.uk 

Items
No. Item

1.

Declarations of Pecuniary Interest

    Minutes:

    There were no declarations of interest.  

     

2.

Minutes of the previous meetings pdf icon PDF 97 KB

    Additional documents:

    Minutes:

    RESOLVED: That the minutes of the meeting held on 18 December 2018 were agreed as a correct record and signed.

     

    The Committee agreed the following changes to the 27 March 2019 minutes:

    ·           To detail the changes to the 18 December meeting in the minutes (agenda pack, page 1).

    ·           The fee savings benefit to Lambeth to be amended from £195,000 (list price), and that the saving figure should instead be £618,495 (agenda pack, pages 5-6).

     

    RESOLVED: Subject to the changes outlined above, that the minutes of the meeting held on 27 March 2019 were approved as a correct record and signed.

     

3.

Lambeth Pension Fund - Annual Report 2018-19 pdf icon PDF 111 KB

    Additional documents:

    Minutes:

    Andrien Meyers, Head of Treasury and Pensions, presented the report and answered questions as below:

    ·           Officers would challenge that the Committee was not fully compliant in structure (agenda pack, page 38) as the Committee had independent professional observers and advisers attended meetings.

    ·           The text box (agenda pack, page 27) required amendment to view all the text.

    ·           The Chair noted that private equity income should be stated in distributions.

    ·           Pooled investments (agenda pack, pages 54-55) were provided as per reporting requirements.

    ·           Officers would detail pension fund members (agenda pack, page 67, tables).

    ·           Officers would correct the numbers and types of co-optees (agenda pack, page 17).

    ·           The LCIV annual fee saving of £618,495 was a nominal list price which Lambeth did not pay.

    ·           Officers to provide detail on divestment from fossil fuels and climate change in the report.

    ·           The wording of the Fund’s triennial valuation (agenda pack, page 27) would be simplified.

    ·           Officers would detail that only 1.77% of the Fund’s assets were currently invested in fossil fuels.

     

    RESOLVED:

    1.       That the Financial Statements and Annual Report 2018/19 be agreed.

    2.       To note the Letter of Representation as set out in Appendix One.

    3.       To note the External Auditor’s Report as set out in Appendix One.

     

4.

Lambeth Pension Fund - Business Plan 2019-20 pdf icon PDF 108 KB

    Additional documents:

    Minutes:

    Andrien Meyers, Head of Treasury and Pensions, introduced the report and noted:

    ·           To add a fourth objective on the timely implementation of the investment strategy and an action point to inform of the implementation of the strategy at each meeting (agenda pack, page 87).

    ·           Retrospective timescales relating to outstanding and carried over actions would be updated and sent around to Committee members for their information.

    ·           Divestment was to be discussed under the monitoring of investment strategy progress, which would be a standing agenda item for all future meetings.

     

    RESOLVED:

    1.         To approve the final version of the 2019/20 business plan shown in Appendix One, subject to the changes outlined above.

     

5.

Investment Performance Report pdf icon PDF 203 KB

    Additional documents:

    Minutes:

    Joanne Holden, Partner and Chief Investment Officer Mercer; Tony English, Senior Investment Consultant Mercer; and, Andrien Meyers, Head of Treasury and Pensions; introduced the report and noted:

    ·           The Fund had £1.4346bn of assets and had seen good performance over the quarter, with a 5.7% return in assets compared to a 5% benchmark.

    ·           The yearly returns of 4.5% compared to a 6.7% benchmark was disappointing.

    ·           The Fund was still overweight in global equity assets, and MFS and Baillie Gifford had performed well; but were key areas in which to rebalance the Fund.

     

    RESOLVED:

    1.         That the report, together with the information in the accompanying exempt from disclosure report, be noted.

     

6.

Investment Performance Report (Manager Report)

    Additional documents:

    Minutes:

    Exclusion of the press and public and summary of part II proceedings.

     

    MOVED by the Chair and,

     

    RESOLVED:

    That under section 100A-H of the Local Government Act 1972, the press and public be excluded from the remainder of the meeting on the grounds that, for the item of business summarised below, it was likely that exempt information, as defined by Section 1001 and Schedule 12a of the Local Government Act 1972 and as specified by reference to the appropriate paragraph thereof, would be disclosed to them:

     

    3.       Information relating to the financial or business affairs of any particular person including the authority holding that information.

7.

Permira Private Debt Presentation

    Minutes:

    Exclusion of the press and public and summary of part II proceedings.

     

    MOVED by the Chair and,

     

    RESOLVED:

    That under section 100A-H of the Local Government Act 1972, the press and public be excluded from the remainder of the meeting on the grounds that, for the item of business summarised below, it was likely that exempt information, as defined by Section 1001 and Schedule 12a of the Local Government Act 1972 and as specified by reference to the appropriate paragraph thereof, would be disclosed to them:

     

    3.       Information relating to the financial or business affairs of any particular person including the authority holding that information.

     

8.

Churchill Private Debt Presentation

    Minutes:

    Exclusion of the press and public and summary of part II proceedings.

     

    MOVED by the Chair and,

     

    RESOLVED:

    That under section 100A-H of the Local Government Act 1972, the press and public be excluded from the remainder of the meeting on the grounds that, for the item of business summarised below, it was likely that exempt information, as defined by Section 1001 and Schedule 12a of the Local Government Act 1972 and as specified by reference to the appropriate paragraph thereof, would be disclosed to them:

     

    3.       Information relating to the financial or business affairs of any particular person including the authority holding that information.

     

9.

LCIV Presentation

    Minutes:

    Exclusion of the press and public and summary of part II proceedings.

     

    MOVED by the Chair and,

     

    RESOLVED:

    That under section 100A-H of the Local Government Act 1972, the press and public be excluded from the remainder of the meeting on the grounds that, for the item of business summarised below, it was likely that exempt information, as defined by Section 1001 and Schedule 12a of the Local Government Act 1972 and as specified by reference to the appropriate paragraph thereof, would be disclosed to them:

     

    3.       Information relating to the financial or business affairs of any particular person including the authority holding that information.