Agenda and minutes

41.1     The Committee RESOLVED to agree the minutes of the previous meeting subject to the inclusion of the following recommendation under item 9:

“that the Committee could recommend the withdrawal from the Orbis partnership in the event of the failure to meet the Annual Benefit Statement in 2019.”

42.1     There were no apologies for absence.

Disclosures by all Members present of personal interests in matters on the agenda, the nature of any interest and whether the Members regard the interest as prejudicial under the terms of the Code of Conduct.

43.1     There were no disclosures of interest.

Notification of items which the Chair considers to be urgent and proposes to take at the appropriate part of the agenda.

44.1     There were no urgent items.

45.1     The Committee considered the draft minutes of the Pension Board meeting held on 5 November.

45.2     The Committee RESOLVED to:

1) note the report; and

2) agree to write a letter on behalf of the Board and Committee expressing concern about the performance of Orbis including in relation to data cleansing issues; system access controls and the review of the Heywood pension administration system; availability of the relevant system to employers for monthly data gathering; non delivery of the Annual Benefit Statement within the statutory deadline for the past three years; non adherence to GMP deadlines; accountability and attendance of pension professionals at members meetings; and control and operational efficiency.

• Review of Private Market Investment

46.1     The Committee considered a report by Hymans Robertson on the performance of the Fund’s investment managers during the second quarter of 18/19. The Committee also considered some research by Hyman’s Robertson into private equirty.

46.2     The Committee RESOLVED to:

1) note the report;

2) consider a report at its February meeting on proposals to:

a) Maintain the current allocation of 5.5% by continuing to commit to the funds current managers, HarbourVest or Adams Street, in 2019. In particular, commit £25m to the Adams Street 2019 Global Fund.

b) Explore the possibility of increasing the fund’s commitment to Pantheon by up to £40m;

c) Review the M&G and UBS 2019 infrastructure fund offering with a view to making a £20m commitment to the M&G greenfield fund and a £40m commitment to the UBS infrastructure fund; and

d) Defer decision to Commit £120m to M&G’s Real Estate Debt VI Fund (“REDF VI”) in order to fulfil the previously agreed 3% target to illiquid debt.

3) if the deadline for commitment to increasing the Fund’s commitment to Pantheon by up to £40m falls before the next meeting, agree to decide whether to commit via email.

47.1     The Committee received a presentation by M&G Bond on its performance as an investment manager for the East Sussex Pension Fund, including the manager’s approach to Environmental, Social and Governance (ESG) matters.

48.1     The Committee considered a report on the East Sussex Pension Fund’s Responsible Investment Policy.

48.2     The Committee RESOLVED to agree the Responsible Investment Policy subject to regular review of the Fund’s carbon footprint.

49.1     The Committee considered a report relating to the proposal to publish a statement regarding the Fund’s compliance with the Financial Reporting Council’s UK Stewardship Code.

49.2     The Committee RESOLVED to approve:

1. the proposed Pension Fund’s Statement of Compliance with the UK Stewardship Code (Appendix 1);

2. the publication of the Fund Stewardship Code Compliance Statement;

3. that the Fund formally notifies the Financial Reporting Council of Code publication on the Council’s website.

50.1     The Committee considered a report on the progress of the Guaranteed Minimum Pension (GMP) Reconciliation Project.

51.1     The Committee RESOLVED to note the report.

51.1     The Committee considered a report on the Annual Benefit Statement programme for 2018, including a summary of the circumstances which led to a breach.

51.2     The Committee RESOLVED to:

1) note the report; and

2) request regular updates during the year on the progress of the Annual Benefit Statement programme.

52.1     The Committee considered a report providing an update on matters relating to the Orbis Business Operations team.

52.2     The Committee RESOLVED to:

1) note the report;

2) request a report providing evidence of the savings Orbis has made to the Pension Fund;

3) request a report on the progress of the Annual Data Cleanse project.

53.1     The Committee considered a report providing a general update on matters relevant to the Fund.

53.2     The Committee RESOLVED to note the report.

54.1     The Committee considered a report on its forward plan.

54.2     The Committee RESOLVED to note the report subject to the addition of future training on the employer rate setting exercise following the 2019 Triennial evaluation.

To consider excluding the public and press from the meeting for the remaining agenda item on the grounds that if the public and press were present there would be disclosure to them of exempt information as specified in paragraph 3 of Part 1 of the Local Government Act 1972 (as amended), namely information relating to the financial or business affairs of any particular person (including the authority holding that information).

55.1    The Committee RESOLVED to exclude the public and press from the meeting for the remaining agenda item on the grounds that if the public and press were present there would be disclosure to them of exempt information as specified in paragraph 3 of Part 1 of the Local Government Act 1972 (as amended), namely information relating to the financial or business affairs of any particular person (including the authority holding that information).

56.1     The Committee considered a report providing an update on the activities undertaken by the ACCESS pool group.

56.2     The Committee RESOLVED to:

1. note the report; and

2. Approve the East Sussex Pension Fund participation in the launching of Phase 1 Tranche 3 of ACCESS Sub-fund investment mandate.

57.1     The Committee considered a report providing an update on pension employers.

57.2     The Committee RESOLVED to note the report.

58.1     The Committee considered a report on the Independent Advisor’s current contract.

58.2     The Committee RESOLVED to agree an extension to the current contract of the Independent Advisor to 31 December 2019.