Agenda and draft minutes

Pensions Committee - Wednesday 7 July 2021 6.30 pm

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

Contact: Marianna Ritchie, Democratic Services,  020 7926 8640, Email: mritchie@lambeth.gov.uk

Note: Information on how to access the meeting is set out on the agenda. However, if you just want to watch the live broadcast you can copy and paste the following link into your browser: https://bit.ly/3A9BsuN The video will remain available to view for 180 days. 

Items
No. Item

1.

Declarations of Pecuniary Interests

    Under Standing Order 4.4, where any councillor has a Disclosable Pecuniary Interest (as defined in the Members’ Code of Conduct (para.4)) in any matter to be considered at a meeting of the Council, a committee, sub-committee or joint committee, they must withdraw from the meeting room during the whole of the consideration of that matter and must not participate in any vote on that matter unless a dispensation has been obtained from the Monitoring Officer.

    Minutes:

    There were none.

2.

Minutes of the Previous Meeting pdf icon PDF 288 KB

    To approve the minutes of the meeting held on 24 March 2021.

    Additional documents:

    Minutes:

    The rebalancing policy had not been circulated to members. Members requested this be done and that the timeline for the rebalancing process be circulated.

     

    RESOLVED:

     

    To agree the minutes with the above action.

3.

Action Log and Work Programme pdf icon PDF 110 KB

    Democratic Services

    Additional documents:

    Minutes:

    Officers apologised that the document on ESG had not been circulated prior to the meeting and agreed to do this afterwards.

     

    RESOLVED:

     

    To note the Action Log and Work Programme for the year.

4.

Lambeth Pension Fund - Funding Issues Update pdf icon PDF 149 KB

    Report Authorised by: Strategic Director for Finance and Investment: Fiona McDermott:

     

    Contact for Enquiries:Robert Browning, Head of Treasury and Pensions, 07394 402801, rbrowning@lambeth.gov.uk 

     

    Additional documents:

    Minutes:

    Rob Browning, Head of Treasury and Pensions introduced the actuary from Hymans Robertson to do a presentation. They summarised that:

    ·      The funding level had increased since 2019;

    ·      Covid-19 and longevity had had an effect on the funding level, but the ongoing impact remained unknown;

    ·      They were focussing on embedding climate risk into the advice they would give about pension contributions after the 2022 valuation;

    ·      They would be including the potential impacts of different outcomes from climate policies in the 2022 valuation.

    RESOLVED:

    That the report, together with the information in the accompanying presentation prepared by the Fund’s actuary, be noted.

5.

Investment Performance Report - Q1 2021 pdf icon PDF 271 KB

    Report Authorised by: Strategic Director for Finance and Investment: Fiona McDermott:

     

    Contact for Enquiries:Robert Browning, Head of Treasury and Pensions, 07394 402801, rbrowning@lambeth.gov.uk 

     

    Additional documents:

    Minutes:

    Rob Browning, Head of Treasury and Pensions, presented the report and stated that:

    ·      A rebalancing exercise would be undertaken to address over and underweight allocations in the fund;

    ·      They would bring a paper about the LDI Fund top-up allocation as it was also still underweight;

    ·      Actuarial valuation would inform de-risking the fund;

    ·      The Pensions team would add a plan with accompanying timeline for delivering the rebalancing strategy on the action log and bring to the next committee meeting;

    ·      The fund had committed to two further funds with Churchill and Permira as agreed at the March Committee meeting; the private debt allocation was still underweight as managers were yet to call up committed capital, but they expected it to rise in the short- to medium-term as capital is called, and;

    ·      The warehousing strategy was ensuring the funds allocated to private debt were achieving a good return in an active mandate.


    RESOLVED:


    That the report, together with the information in the accompanying performance report, be noted.

6.

Business Plan 2021/22 pdf icon PDF 152 KB

    Report Authorised by: Strategic Director for Finance and Investment: Fiona McDermott:

     

    Contact for Enquiries:Robert Browning, Head of Treasury and Pensions, 07394 402801, rbrowning@lambeth.gov.uk 

     

    Additional documents:

    Minutes:

    Rob Browning, Head of Treasury and Pensions, presented the report and, in response to questions, clarified that the Council was not yet a signatory to the stewardship code, but that it was aiming to do so. Rob Browning also explained that the stewardship code was a set of principles which asset managers were encouraged to set out compliance with. The deadline for outlining how the Council would adhere to those principles was the end of October, and officers would be sending out the LCIV stewardship report after the meeting as an example of a stewardship report.

     

    RESOLVED:

     

    That the Business Plan for 2021/22 be approved, as appended at Appendix 1.

7.

Draft Annual Report 2020/21 pdf icon PDF 157 KB

    Report Authorised by: Strategic Director for Finance and Investment: Fiona McDermott:

     

    Contact for Enquiries:Robert Browning, Head of Treasury and Pensions, 07394 402801, rbrowning@lambeth.gov.uk 

     

    Additional documents:

    Minutes:

    Rob Browning, Head of Treasury and Pensions, presented the report, stating that:

     

    ·      There had been very strong performance for the year overall;

    ·      The Fund’s audit was about to begin and should be completed by the end of November, which would not meet the statutory deadlines for the Council’s accounts;

    ·      There were some challenges presented for completing the audits as Mazars was still working on NHS audits due to capacity issues, but the team had prepared for expected delays;

    ·      A consultation was underway to make a plan for avoiding late accounts in the future.

     

    RESOLVED:

     

    To note the draft Annual Report as appended and delegate approval of the final audited report and financial statements to the Chair.

8.

General Update - July 2021 pdf icon PDF 166 KB

9.

Investment Performance (Manager) Report - Q1 2021

Minutes:

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.

10.

LCIV Multi Asset Credit Fund

Minutes:

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.