Agenda and minutes

To approve as correct the minutes of the meeting held on 22 November 2016 and authorise the Chairman to sign them.

The minutes of the meeting of the Committee held on 22 November 2016 were agreed as a correct record and signed by the Chairman.

Officers advised the Committee that the net return on the Fund’s investments for the quarter to 30 September 2016 was 6.7%. This represented an outperformance of 2.5% against the tactical benchmark and represented an outperformance of 1.8% against the strategic benchmark.

The overall net return for the year to 30 September 2016 was 16.2%. This represented an outperformance of 2.6% against the tactical combined benchmark and an under performance of -7.9% against the annual strategic benchmark.

At the close of business on 30 September 2016 the total combined value of the fund was £640.81m this represented an increase of £38.48m from the position at the close of business on 30 June 2016. Officers advised that as at the end of November 2016 the value of the fund stood at £634.5m.

The Committee noted the report.

The Committee were advised that the consultation period for responses to the MiFID II proposals closed on 4 January 2017. This could have a significant impact on both the Pension Fund and the Council’s treasury Management function. There were several areas of concern and both the London CIV and London Government Association were submitting responses. It was important that the Council also respond and the Committee AGREED to delegate to the Section 151 Officer authority to respond on the Pension Fund’s behalf.

The Committee resolved to excluded the public from the meeting during discussion of the following item on the grounds that if members of the public were present it was likely that, given the nature of the business to be transacted, that there would be disclosure to them of exempt information within the meaning of paragraph 3 of Schedule 12A to the Local Government Act 1972 which could reveal information relating to the financial or business affairs of any particular person (including the authority holding that information) and it was not in the public interest to publish this information.

The committee noted the presentation from Hymans Robertson.

The Committee thanked Jason Allan, the UK Head of Pension Funds for his presentation on the performance of the MPF All World Equity Index sub-Fund, the MPF Fundamental Index Global Equity sub-Fund and the MPF Sterling Liquidity Index sub-Fund. In response to questions Jason explained the methods used to ensure the tracking errors were kept to a minimum.

The Committee thanked both Tommy Garvey, a member of GMO’s Asset Allocation team and Helen Roughsedge, Client Relationship Manager for their presentation on the performance of GMO’s Global Real Return (UCITS) Fund.

Jill Davys and Julian Pendock presented on behalf of the London CIV discussing performance of the three funds they manage on behalf of the Pension Fund and proposals for the further development of the London CIV.

The Committee thanked them for the presentation.

The Committee deferred consideration of this item for decision at a special meeting to be called in January 2017.