Agenda and minutes

Pension Fund Panel
Monday 28 June 2021 10:00 am

You can view the individual reports for this meeting by selecting the headings from the numbered list of items at the bottom of this page. Alternatively you can view the entire agenda by selecting 'Agenda Reports Pack' below.

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Venue: Committee Room 1 - Guildhall. View directions

Contact: Kevin Jones 0208 547 6622  Email: kevin.jones@kingston.gov.uk

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Items
No. Item

1.

Apologies for Absence

Minutes:

Apologies were received from Councillors Mark Durrant and Dennis Goodship. Apologies were also received from Non-Voting Observer members Chris Coke, Leslie Diston and Louise Gallagher.

2.

Declarations of Interest

Minutes:

There were no declarations of interest.

3.

Minutes

Minutes:

RESOLVED that the minutes of the meeting held on 3 March 2021 be signed as a correct record.

4.

Pension Administration - Biannual Update pdf icon PDF 81 KB

This report provides an update on the key activities of the Shared Pensions

Administration Service (“the Service”), which was formed on 1 April 2016 to provide Local Government Pension Scheme (“LGPS”) administration for both Kingston Council Pension Fund (“the Fund”) and Sutton Council Pension Fund.

Minutes:

The Panel received a report by the Head of Insurance and Pensions Administration which provided an update on the key activities of the Shared Pensions Administration Service. The report included updates on the McCloud Remedy Project, Annual Returns and Annual Benefit Statements, Guaranteed Minimum Pension Reconciliation Project, Data Improvement, FRS 102 and IAS 19 Reports, Processing Performance and Open Processes.

 

The Committee NOTED the report.

 

5.

Quarterly Manager and Investment Performance for the Quarter ended 31 March 2021 pdf icon PDF 481 KB

This report considers the investment performance of the Fund and each manager for the quarter to the end of March 2021, performance in the last twelve months and annualised rolling three year performance against the benchmark.

Minutes:

A report was received from the Head of Pensions Investments (Finance Shared Service) which reviewed the performance of the Pension Fund’s investments. Thereport considered the investment performance of the Fund and each manager for thequarter to the end of March 2021, performance in the last twelve months and annualisedrolling three year performance against the benchmark. The report noted that the market value of the Fund's investments as at 31 March 2021 was £1,045.3m which was an increase of £21.9m or 2.14% from the total value at the end of the previous quarter (31 December 2020 - £1023.4m). Performance over the one year period to 31 March 2021, was a positive 28.7%, and above the total plan benchmark of 27.3%. Performance over the three year period to 31 March 2021, was also positive at 9.8%, and above the total plan benchmark of 9.5%. The fund managers’ annual returns were all positive, ranging from +3.4% to +41.9%. The fund managers’ 3 year returns were also all positive, ranging from +2.5% to +16.1%.As at 31 March 2021, the Fund had 19.29% (£201.6m) of its assets on the London CIV platform.

 

The Panel NOTED the performance of the Fund.

6.

Governance Review pdf icon PDF 68 KB

A progress update on the Governance Review project

Minutes:

The Panel had before it a report bythe Head of Pensions Investments (Sutton and Kingston Finance Shared Service) which gave a progress update on the Governance Review project

 

The Panel agreed to NOTE the report.

7.

Training Policy pdf icon PDF 61 KB

This report presents the draft RBK Pension Fund Training Policy and Training Plan for the year 2021-2022.

Additional documents:

Minutes:

A report was received from the Head of Pensions Investments which presented the draft RBK Pension Fund Training Policy and Training Plan for the year 2021-2022.

The draft policy detailed the training policy for members of the Pension Fund Panel, Pensions Board and senior officers responsible for the governance and management of the Fund and was established to aid the Panel, Pensions Board members and officers in performing and developing personally in their individual roles, with the ultimate aim of ensuring that the RBK Pension Fund is managed by individuals who have the appropriate levels of knowledge and skills. It set out the provisional training plan for the next Municipal year, acknowledging that it may change as training needs were re-prioritise during the year.

 

The Panel AGREED:

 

1.  To approve the RBK Pension Fund Training Policy at ANNEX A to the report

 

2.  To approve the 2021-2022 RBK Pension Fund Training Plan at Annex B

 

3.    To review the Training Policy and approve the annual training plan on an annual basis

 

Voting: Unanimous

8.

Work Programme pdf icon PDF 50 KB

The programme of work for the Pensions Panel for the next three meetings is set out below.

Minutes:

The Panel received a report by the Head of Pensions Investments which set out the proposed programme of work for the Pensions Panel for the next three meetings

 

The Panel NOTED the Work Programme

9.

Exclusion of the Press and Public

The following resolution is included as a standard item which will only be relevant if any exempt matter is to be considered at the meeting for which the Committee wish to resolve to exclude the press and public:

 

To exclude the public from the meeting under Section 100(A)(4) of the Local Government Act 1972 on the grounds that it is likely that exempt information, as defined in paragraph 3 of Part I of Schedule 12A to the Act, would be disclosed and the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

 

Minutes:

The Panel RESOLVED to exclude the public from the meeting under Section 100(A)(4) of the Local Government Act 1972 on the grounds that it is likely that exempt information, as defined in paragraph 3 of Part I of Schedule 12A to the Act, would be disclosed and the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

 

Voting: Unanimous

 

10.

Investment Strategy Implementation Plan Update

To agree the particular passive equity fund that Royal Borough of Kingston Pension Fund should invest into, in accordance with the Investment Strategy Implementation Plan agreed at the March 2021 Panel meeting.

Minutes:

The Panel received an exempt report by the Head of Pensions Investments which requested that the Panel agree the particular passive equity fund that Royal Borough of Kingston Pension Fund should invest into, in accordance with the Investment Strategy Implementation Plan agreed at the March 2021 Panel meeting.

 

After discussion the Panel RESOLVED to approve the transfer out from the Royal Borough of Kingston (RBK) Pension Fund’s active equity mandate with Schroders and transferring into Legal and General’s Future World Global Equity Index Fund (L&G FW Index Fund)

11.

Procurement Update

To update Panel on the various procurements with regards to the RBK Pension fund

Minutes:

The Panel had before it an exempt report by the Head of Pensions Investments, updating the Panel on the various procurements with regards to the RBK Pension fund

 

The Panel agreed to NOTE the update

12.

London CIV update

A progress update on the London CIV

Minutes:

The Panel received an exempt progress report on the London CIV by the Head of Pensions Investments (Sutton and Kingston Finance Shared Service)

 

After discussion the Panel agreed to NOTE the update, and

 

The Panel further agreed to notify the London CIV that RBK Fund approves the LCIV’s proposal that the existing CQS mandate is split 50/50 between CQS and PIMCO

 

Voting: Unanimous

13.

Urgent Items Authorised by the Chair

Minutes:

There were no urgent items authorised by the Chair.