Agenda item

Asset Pooling Update

(To receive a report by Jo Ray (Pension Fund Manager) which updates the Board on progress of the creation of the Border to Coast Pensions Partnership Ltd (Border to Coast), the Fund's chosen asset pool)


Consideration was given to a report from Jo Ray, Pension Fund Manager, which updated the Board on the progress of the creation of the Border to Coast Pensions Partnership Ltd, the Fund's chosen asset pool.


Claire Machej, Accounting, Investment and Governance Manager, guided the Board through the report.


The Board was advised that Border to Coast was now live, and that Border to Coast had also received Financial Conduct Authority (FCA) approval (FCA) for the first four sub-funds in May 2018.  It was noted that Border to Coast had completed their statutory accounts, under the small companies' exemption, for the first period of operation to 31 March 2018; this then allowed for future statutory financial period ends to be aligned to the Partner Funds.


In addition to the update provided within the report, it was reported that at the Joint Committee meeting held on 10 July 2018, Councillor Sue Ellis from South Yorkshire and Councillor John Weighall from North Yorkshire had been nominated to the two Shareholder Director positions.  The Joint Committee's terms of reference had moved to phase two, now that Border to Coast had gone live.  It was also reported that Councillor Doug McMurdo, form Bedfordshire and Councillor Tim Evans, from Surrey had been elected to the positions of Chairman and Vice-Chairman of the Joint Committee.  It was highlighted that there was to be further discussion regarding the co-option of a scheme member representative on to the Joint Committee.


The Board was advised that Peter Jones had attended one of the two advisor days held in May by Border to Coast, and that the feedback had been that he had generally been impressed with the management team; and the matters covered on the day.  It was also highlighted that feedback from the manager open days was that it had been well received.


It was reported that the opinion from Legal Counsel regarding the sharing of transition costs had been received and that Border to Coast were liaising with the Ministry of Housing, Communities & Local Government (MHCLG) regarding options for the Partner Funds.  The Board noted that the Lincolnshire Fund was not involved in the first transitions; this allowed time for the Council and Border to Coast to learn from those that had transitioned early.


The Board noted that the first externally managed sub-fund would be launched in quarter four later in the year (UK Equities) and that Global Equities would then follow; which was likely to be quarter one of 2019.  The Board noted further that the Pension Fund Manager had been involved in the External Manager Workshops.


The report confirmed that two Customer Relationship Managers had been appointed who were Mat Dawson (ex-Warwickshire County Council Pension Fund) and Andrew Stone (ex - L & G Investment Manager), both of whom had been invited to present to the December 2018 Pensions Committee meeting.  It was also highlighted that Robecco had been appointed by Border to Coast as voting and engagement provider.


In conclusion, the Board was advised that officers were working closely with Border to Coast as assets were beginning to be transitioned.


During a short discussion, the matter of the co-opted scheme member representative on to the Joint Committee was raised; as it was unsure how many representatives there would be.  Confirmation was given that this matter was to be discussed at the next Joint Committee meeting.  Some concern was also made to governance issues; and whether there was any possibility of getting all Pension Board Chairmen together.




            That the Asset Pooling Update report be noted.

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