Summary of the minutes: 22 FEBRUARY 2024
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All members of the Committee were present. |
Governance
The Committee considered a report introduced by Michael Burton and resolved to note the Pension Board appointments, note that the General Code of Practice has been issued by the Pensions Regulator and will be applied from 27 March 2024 and approve the Risk Management Policy.
GOVERNANCE CHANGE REPORT
The Committee received a similar report to that presented at Board and agreed the amendment to the write off of debt process in relation to the Fund and the revisions to the CFO responsibilities.
PENSIONS ADMIN
The Committee received a similar report to that
presented at Board and noted the updates.
Q3 Budget Monitoring Report AND 24/25 BUSINESS PLAN AND BUDGET
The Committee received a similar report to that presented at Board and noted the update on the 2023/25 Quarter 3 Forecast Outturn Position and the Draft Budget for 2024/25.
Internal Audit report
The Committee received a similar report to that presented at Board and noted the draft Internal Audit strategy for Pensions and the Annual Plan.
Avc
The Committee considered a similar report to that presented at Board and noted the management and governance of the AVC arrangements with Prudential.
Risk Register
The Committee considered and noted a report. The increased risk Employer Covernant was discussed.
Investment
The Committee considered and noted an Investment Report from Officers and ISIO (Investment Advisers).
Due to the timing of the November meeting the usual Quarterly Performance Report for Q3 2023 was not ready, so Isio provided a full report for this committee. The Quarterly report for December had also not been complete in full in time for the meeting.
The quarters investment returns were disappointing, however the longer term returns at Fund level remain robust, with private equity assets adding significant value. The Fund is a long-term investor and short term volatility or negative performance is not unusual or concerning at this stage. UK equities performed well, largely driven by the energy market, with the sector benefitting from a rise in the oil price.
The Committee noted that the Chair of the Pension Committee and Officers met with Ruffer and drew some comfort about approach, the high conviction rates proved prudent during the pandemic.
The Committee noted that the Fund is slightly overweight in private equity against the agreed strategic allocation and underweight in private credit, work is ongoing looking at moving into private credit, looking at what this will comprise of and allocating managers, ACCESS are not in a position to do this at this stage, ISIO will bring the proposal back to a future meeting and the possible managers to consider.
WORK PROGRAM
The upcoming work program was noted.
EXEMPT ITEMS
A number of items were discussed under the Exempt part of the meeting which Board Members can have access to on request. These included the Funds allocation to Index Linked Gilts, information on the operator of the ACCESS Pool, additional exempt risks on the Risk Register, the Breaches Log and the Admissions and Cessations Report.