Issue - meetings

·         ACCESS Update

6.1       The Committee considered a report by the Chief Operating Officer providing an update on the Government’s requirement for Local Government Pension Scheme (LGPS) funds to pool investments.

6.2       The Committee raised concerns about:

·         whether the ACCESS pooled fund managers would perform as well as the East Sussex Pension Fund (ESPF);

·         the complexity in holding poorly performing investment managers to account under the new system;

·         the delays in being able to pool the property portfolios of the separate pension funds ;

·         being responsible for the performance of the ESPF – as the Pension Committee – but not having sufficient influence over the appointment of fund managers.

6.3       The Committee RESOLVED to:

1)         note the report and its appendices; 

2)         authorise the Chief Operating Officer, in consultation with Chair of the Pension Committee, to submit the refined, detailed response of the East Sussex Pension Fund and ACCESS Pool to the Government by 15 July 2016; and

3)         communicate any significant changes to the submission to the rest of the Committee, Chair of the Pension Board, and independent advisor, prior to submission on 15 July 2016.

49.1     The Committee considered a report by the Chief Operating Officer 1) providing an update on the work that has been undertaken to consider the Government’s LGPS Investment Pooling requirements and consultation on the Investment Regulations; and 2) seeking approval from the Committee regarding the best pooling option for the East Sussex Pension Fund.

49.2     The Committee RESOLVED to:

1)    Agree that ACCESS is the preferred option for the Fund; and

2)    authorise the Chief Operating Officer, in consultation with Chair of the Pension Committee, to submit the finalised response on the East Sussex Pension Fund’s pooling option; the consultation on the LGPS - Revoking and replacing the Local Government Pension Scheme (Management and Investment of Funds) Regulations 2009, to the Government by 19 February 2016.

42b.1   The Committee discussed a report and presentation by Hymans Robertson providing an analysis of the LGPS asset pooling options.

42a.1   The Committee considered a report by the Chief Operating Officer 1) informing it of the Department of Community and Local Government (DCLG) criteria regarding the Local Government Pension Scheme (LGPS) Investment Pooling and the Department’s Consultation on the Investment Regulations; and 2) seeking the Committee’s approval regarding a pooling option proposal.

42a.2     The Committee resolved to:

1.    note the DCLG Criteria regarding the LGPS Investment Pooling Proposals and Consultation on the Investment Regulations;

2.    approve option 3 (work with other authorities to create a new FCA registered Joint Vehicle to cover all asset classes) as the option for pooling the East Sussex Pension Fund assets, and approve this option as the basis on which to submit the consultation response. Officers will consequently cease to explore pooling with Borders to Coast, Lancashire/LPFA, and London CIV, and will instead concentrate on negotiating with ACCESSas the preferred option, in addition to exploring the Northern (Manchester) option.

3.    Authorise the Chief Finance Officer to consult with agreed like-minded funds to draft the consultation response for review and approval by the Pension Committee on 8 February 2016.