Greenwich Council

Agenda and minutes

Venue: Town Hall, Wellington Street, Woolwich SE18 6PW. View directions

Contact: Clare Chapman  Email: clare.chapman@royalgreenwich.gov.uk or tel: 020 8921 6160

Items
No. Item

1.

Apologies for Absence

To receive apologies for absence from Members of the Panel.

Minutes:

There were no apologies for absence.

2.

Urgent Business

The Chair to announce any items of urgent business circulated separately from the main agenda.

Minutes:

There was no urgent business.

3.

Declarations of Interest pdf icon PDF 34 KB

Members to declare any personal and financial interests in items on the agenda.  Attention is drawn to the Council’s Constitution; the Council’s Code of Conduct and associated advice.

Additional documents:

Minutes:

Resolved –

 

That the list of Councillors’ memberships as Council appointed representatives on outside bodies, joint committees and school governing bodies be noted.

4.

Minutes pdf icon PDF 36 KB

Members are requested to confirm as an accurate record the Minutes of the Pension Fund Investment and Administration Panel meeting held on 16 January 2017.

 

No motion or discussion may take place upon the Minutes except as to their accuracy, and any question on this point will be determined by a majority of the Members of the body attending who were present when the matter in question was decided.  Once confirmed, with or without amendment, the person presiding will sign the Minutes.

Minutes:

Resolved -

 

That the minutes of the meeting of the Pension Fund Investment & Administration Panel held on 16 January 2017 be agreed and signed as a true and accurate record.

5.

Pension Fund Audit Plan 2016-17 pdf icon PDF 38 KB

To note the Pension Fund Audit Plan 2016/17 (Appendix A).

Additional documents:

Minutes:

The report was introduced by the Senior Principal Accountant accompanied by Jamie Bewick of Grant Thornton who delivered a presentation setting out the scope and timing of the work Grant Thornton proposed to undertake for the audit of the financial statements. He confirmed the audit fee remained unchanged from the previous year. 


Resolved –

 

That the Pension Fund Audit Plan 2016/17 be noted.

6.

Fund Manager Performance to 31 December 2016 pdf icon PDF 73 KB

Note the performance of the Royal Borough of Greenwich Pension Fund’s (‘the Fund’) investment managers for the period ending 31 December 2016.

 

To agree that the exempt information presented at appendix A not be released to the press or public in part or full.

Additional documents:

Minutes:

The report was introduced by Andrew Elliott of Hymans Robertson.  He noted it had been an interesting quarter which had been dominated by the US presidential election.  The markets had responded positively to this event and equities and bond yields had risen.  However, emerging markets had performed poorly and this was due to protectionist strategies advocated by the new administration.  This situation had now settled and emerging markets were moving forward again. 

 

He referred to page 5 of the Review of Investment Managers’ Performance for the Fourth Quarter of 2016 (attached to the report at Appendix A) and advised the Panel that action had been taken to rebalance portfolios to protect the returns already achieved. 

 

He confirmed that the value of the pound (£) had changed over the quarter and that overseas equities had performed well so the return had been enhanced i.e. the reduced value of the pound (£) had been beneficial in overseas portfolios. 

 

Resolved –

 

That the report of the performance of the Royal Borough of Greenwich Pension Fund’s (‘the Fund’) investment managers for the period ending 31 December 2016 be noted.

 

That the information detailed in the Exempt Appendix A to the report be considered in closed session under the provisions of the Local Government Act 1972, Schedule A, Paragraph 3 “Information relating to the financial or business affairs of any particular person (including the authority holding that information)”; and agree that the Exempt Appendix to the report not be subsequently released to the press or public.

7.

Triennial Actuarial Valuation 2016 pdf icon PDF 102 KB

To approve the Pension Fund Triennial Actuarial Valuation as at 31 March 2016, as follows:

 

(a) the assumptions used in the report (Section 5)

(b) the employer contribution rates (Section 8)

(c) noting that this report should be read in conjunction with the Funding Strategy Statement.

Additional documents:

Minutes:

The report was introduced by the Assistant Director - Corporate Finance & Deputy s151 Officer.  He advised the Panel that assets had gone up more than liabilities so the funding ratio had risen to 91%.  He confirmed that by the end of the next period, the contribution rate will have remained the same for a decade.  

 

Resolved –

 

That the pension fund Triennial Actuarial Valuation at 31st March be approved as follows:

 

a)    The assumptions used in the report (Section 5)

b)    The employer contribution rates (Section 8)

c)    Noting that the report should be read in conjunction with the Funding Strategy Statement

 

 

8.

Funding Strategy Statement pdf icon PDF 55 KB

Agree the revised Funding Strategy Statement (FSS) – Appendix A.

Additional documents:

Minutes:

The report was introduced by the Assistant Director - Corporate Finance & Deputy s151 Officer.  He confirmed there had been little material change since the last report three years ago. 

 

Resolved –

 

That the revised Funding Strategy Statement (FSS) be agreed.

9.

Investment Strategy Statement pdf icon PDF 53 KB

Agree the Statement of Investment Strategy Statement (ISS) – attached at Appendix A.

Additional documents:

Minutes:

The report was introduced by the Senior Principal Accountant. 

 

The Chair referred to Section 3.5 of the report which stated that the Secretary of State had the power to issue a Direction if he was satisfied that an administering authority was failing to act in accordance with the guidance.  The Chair felt this was a positive use of the Secretary of State’s powers.  The Senior Investment Consultant was not aware of any funds that had been brought into special measures.

 

Resolved –

 

That the Statement of Investment Strategy Statement (ISS) be agreed.

10.

Risk Management pdf icon PDF 59 KB

Note the updated Pension Fund risk register (Appendix A) as a tool for managing risk within the Pension Fund.

Additional documents:

Minutes:

The report was introduced by the Senior Principal Accountant.

 

Resolved –

 

That the updated Pension Fund risk register be noted.