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Contact: Lowri Haf Evans 01286 679 878 Email: lowrihafevans@gwynedd.gov.uk
No. | Item |
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APOLOGIES To receive
any apologies for absence Minutes: Apologies were received
from Councillors H. Eifion Jones (Anglesey County Council Representative),
Peredur Jenkins and Glyn Thomas (observer). Sharon Warnes, Chair of the
Pensions Board, was welcome to the meeting, as an observer. |
|
DECLARATION OF PERSONAL INTEREST To receive
any declaration of personal interest Minutes: None to
note |
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URGENT ITEMS To note any
items which are urgent business in the opinion of the Chairman so that they may
be considered Minutes: None to
note |
|
The
Chairman shall propose that the minutes of the meeting of this committee held
on 10 November 2015 to be signed as a true record Minutes: The Chairman signed the
minutes of the previous meeting of this committee, held on 10 December 2015, as
a true record. |
|
Investment Regulations Consultation PDF 160 KB To submit a report by the Investment Manager Minutes: a)
The Investment Manager submitted a report outlining a proposal within the current consultation by the Westminster Government on dissolving and
superseding the local government pension scheme regulations 2009. It was highlighted that the reason for this was to enable funds to take part in
merging investments without breaching current restrictions. The Committee was asked to consider proposals to be included in the response from Gwynedd Council. The two proposals under
consideration 1.
Adopt a local approach to investing 2.
Present a defence - secretary of state had the power to intervene b)
In response to the first proposal - to adopt a local approach
to investing, it was highlighted that the principle was acceptable, but there was insufficient
detail on how it will
be implemented; it would need to be ensured that clear
statements and appropriate definitions were in place
before adopting it fully. In
considering establishing and investing in
one fund across Wales, it was noted that the new regulations were practical and offered more freedom for funds
to work together. Proposal one was accepted and it was agreed
to prepare a response. c)
In response to the second proposal - presenting a defence, it was highlighted that there was not a full explanation and there would
be a need to understand what the structure of the intervention in question was. It was highlighted that the intervention could change by
government and there it would
be essential to ensure financial management of the regulations and not political management. The Head of Finance added that he was not overly concerned about any intervention
as the fund was administered effectively, but a specific process and structure
needed to be in place to make clear
in which circumstances the intervention would be likely - needed clarity. It was decided to reserve opinion on this
proposal, but include questions in the response RESOLVED to delegate the power to the
Investment Manager, the Head
of Finance and the Chair to
respond to both of the proposals. |
|
Investment Review Consultation - Government response funds PDF 26 KB To submit a report by the Investment Manager Additional documents:
Minutes: a)
The Investment Manager gave an update
on the work undertaken by the Pensions Sub-group of the Society
of Welsh Treasurers on establish ONE joint-investment vehicle to seek better fees. It
was reiterated that the eight funds had received the support of their Committees, but it was predicted
that there was a fund to the value of approximately £12bn and not one with at least
£25bn as the Chancellor had
announced. It was highlighted that despite this, the consultants would continue to put a proposal forward on behalf of the eight funds in
Wales. In response to the Chancellor's announcement, it was highlighted that good arrangements were already in
place in Wales and if the fund
were to become larger, then the most obvious concern was that the line of accountability would be extended along with the ability to communicate effectively. b)
It was reported that Hymans Robertson has been appointed
(through a procurement process) as the consultant that would act on behalf
of the eight funds by assessing the business case and
providing a response to the
consultation on their behalf. It
was reiterated, as part of brief, that Hymans would
also offer observations on the governance arrangements. c)
The
initial response, which had also been circulated across the eight funds in
Wales, was distributed to the Members. It was highlighted that the hope was to
support it as ONE proposal. Although there was no certainty
what Westminster's response to the proposal would be, the hope was to continue as eight
and/or perhaps
join another group. ch) It was proposed and seconded
to submit the response as one fund
for Wales and to receive Westminster's response (when it would be submitted). If the proposal were rejected,
then further discussion and considering the possible options would be needed. RESOLVED to support Hymans Robertson's proposals for the consultation |
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Private Equity and Infrastructure Investments PDF 103 KB To submit a report by the Investment Manager Minutes: a)
In the recent quarterly
meeting of the Investment Panel in
London, Hymans Robertson's report on the options
for further commitments to private equity and infrastructure
investments had been discussed. It was concluded that direct funds
should be invested in. b)
In response, it was noted that
the discussion had already been held in
London on 19.11.15 and therefore the Committee was ready to confirm these direct investments
with -
€20m with the Partners Group Direct Equity
2016 Fund -
$43.6m
with the Partners Group Direct Infrastructure 2015 Fund in line with the opinion of the
Investment Panel. RESOLVED to accept the recommendation. |
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Pension Administration Unit Staffing PDF 123 KB To submit a report by the Pensions Manager Minutes: a)
Submitted – the report of the Pensions Manager requesting that the members approve the increase in expenditure on changing the structure of the Administration
Unit along with agreeing on the revised staff structure that will be operational
as of 1 March 2016. b)
It was highlighted that the adaptation would widen the supervisory responsibility within the unit, which, in due course,
would strengthen the regulatory tiers within the structure, ensuring a more effective service and improving
communication.
RESOLVED to accept the recommendation. |