Agenda and draft minutes

To elect a Chairman for this meeting

RESOLVED to elect Councillor Stephen Churchman as chairman of the meeting.

To elect a Vice-chairman for this meeting

RESOLVED to elect Councillor John Brynmor Hughes as vice-chairman of the meeting.

To receive any apologies for absence

Councillor Seimon Glyn (Gwynedd Council), Councillor John P Roberts (Gwynedd Council), Arnold Milburn (Llangefni Town Council), Mandy Evans (Abergele Town Council), Nia Jones (Cwmni Frân Wen) and Medrwn Môn.

To receive any declaration of personal interest.

No declarations of personal interest were received from any members present.

To note any items which are urgent business in the opinion of the Chairman so that they may be considered

None to note

To receive the Pension Fund’s Annual Report for 2016-2017

The Head of Finance presented the Annual Report of the Pension Scheme for 2016/17.

Particular attention was given to the main matters of the report:

Investment Performance

It was reported that there was an increase of £339m in the value of the Fund's assets  from £1,525m (31/03/2016) to £1,864m (31/03/2017). It was noted that this significant growth of 22% reflected the general excellent performance of the stock market this year and that the Fund's investment managers had attained the benchmark level in 2016/17. Reference was made in the report to the statement of accounts (subject to audit by Deloittes). Reference was also made to the net assets statements that continued to be heartening, considering that this had been built on the comparatively favourable financial position of the Fund during the 2016 Valuation. Attention was drawn to the investments and the exceptional performance of the foreign investments and the excellent performance by Insight (investment manager) were highlighted.

Recently the Government's Actuary Department reported to the National Board of the Local Government's Pension Scheme LGPS (the SAB) on the financial level of each fund on 31/03/2016.     To find a comparison, standard 'like for like' assumptions were used (rather than the public strategic assumptions of the funds themselves).  It was reported that between 2013 and 2016 Valuations, the standard funding level of the Gwynedd Fund increased by 7%, from 102% in 2013 to 109% in 2016.   This placed Gwynedd in the top ten of the 89 LGPS funds in England and Wales and the highest in Wales on 31/03/2016.

Whilst the assumptions of the Fund itself were used for financial planning and for strategic investment decisions, it was noted that these comparisons confirmed the robustness of the Gwynedd Fund funding strategy, with a significant growth in investment assets in 2016/17 building on this.

Wales Pension Partnership

The Chairman reported that significant progress had been made over the year to develop the Wales Pension Partnership to manage the investment assets of the eight Local Government Pension Schemes (LGPS) in Wales on a collaborative basis. The Partnership was now in a position to establish a Combined Investment Vehicle by 1 April 2018.  It was emphasised that the Partnership would not entail combining the eight funds; each fund would retain its unique identity with the administrative authorities continuing to be responsible for complying with the regulations of the LGPS plan and pension legislation in terms of their membership.   Annual accounts and three-year actuarial valuations would continue to be prepared for each individual pension fund and each fund would determine their financial strategy themselves.

It was added that the eight Councils had approved an inter-authority agreement (Spring 2017) with the Wales Pensions Partnership and had now established a Governance Joint-Committee that comprised elected members from each administrative authority, supported by a Working Group of Officers.    It was noted that Councillor Stephen Churchman was the Chair of the Joint-Committee this year.  It was highlighted that the eight pension funds in Wales had commenced the process of European Procurement  ...  view the full minutes text for item 6.