Investment Consultant Objectives

The Fund expects its Investment Consultant to achieve the following strategic objectives and outcomes to ensure it can meet its own objectives.

East Sussex Pension Fund objectives and requirements from consultants	Investment Consultant objectives	Desired outcomes / measurement
Ensure members’ benefits are met as they fall due	Deliver an investment approach that reflects the Fund’s cashflow position, and likely evolution, and minimises the risk of forced disinvestment.	The Fund has sufficient cash flow to allow members benefits to be paid when due
Support a long-term funding approach that is consistent with a stable and affordable contribution approach from the employers	Advise on a suitable Strategic Asset Allocation and investment strategy. Ensure the strategy is reviewed and amended to deliver the required investment returns from the Fund’s investments in line with Funding Strategy statement. Avoid short term strategy changes that will impact the governance and strategy delivery within the LGPS pool structure. Ensure Risk and return is assessed in all strategic investment decisions supporting the need for pension liabilities of the Fund to be met and support progress towards a long-term steady state of funding	Returns from the investment strategy over time are in line with or exceed the assumptions within the Funding Strategy Statement and the funding level remains within the expected range of outcomes
Ensure the Fund’s approach is aligned with the objectives of pooling and associated guidance	Provide clear information so that the Committee is able to effectively monitor the underlying strategies it is invested in. Provide oversight on the process and objectives that the ACCESS pool relies upon to provide investment solutions and scrutiny of investment governance that the ACCESS pool undertakes to ensure that the pool is providing suitable investments to the Fund. Provide oversight and scrutiny of the investment offerings of the LGPS Pool and alignment with the Funds Investment strategy. Support the Committee in effective investment within the pooled product offerings, taking into account the manager selection and due diligence already completed on behalf of the Fund by the pool so not to duplicate this implementation aspect of a mandate allocation for the Fund.	Evolve performance monitoring and reporting to reflect the investment of assets through the pool, as well as the effectiveness of ACCESS as a pool. All new investment activity is implemented via the LGPS pool (or other future pooling solution) or a clear value for money and stewardship case is defined with a timeline in which this would be pooled.
Ensure cost efficient implementation of the Fund’s investment strategy	Advise on the cost-efficient implementation of the Fund’s investment strategy as required, taking into account the evolution of the ACCESS pool. Ensure transition costs are considered in manager or asset class changes Consider all associated costs when supporting the fund in manager selection or pool allocation decisions	Ensure a focus on key risk / return priorities Challenge of any areas of poor performance highlighted and solutions identified All investment implementation decisions are supported with documented cost implications.
Ensure the Fund’s approach reflects relevant regulatory and legislative requirements	Ensure investment advice complies with relevant pensions regulations, legislation and supporting guidance. Ensure investment advice proactively reflects and comments on regulatory changes	No instances of non-compliance with relevant regulations
Ensure the Fund is an active steward of capital, actively keeping the RI policy under review and reflecting new developments in the industries understanding and ability to implement a robust RI strategy. Ensuring RI is incorporated in governance of the Fund and taken into account in all decision making.	Advise and support the Committee in developing the Committee’s policies and beliefs, including those in relation to Responsible Investment. Ensure investment advice reflects the Committee’s policies and beliefs, including those in relation to Responsible Investment considerations.	Evidence that the Fund’s investment arrangements are consistent in all respects with the Committee’s set of investment beliefs Committee very satisfied with level of support provided
Ensure the Fund’s investment objectives are supported by an effective governance framework	Provide relevant and timely advice. Help the Committee develop knowledge and understanding by providing appropriate training and well structured reports with clear language and supported recommendations. Assist with identifying topics where further training may be beneficial to the Committee	All reports and advice delivered within prescribed timescales Committee Knowledge and Understanding on investment matters increases or remains high Committee are very satisfied with the value of money represented by the services provided