Minutes:
Nick Orton provided feedback from the Local Pension Board, which included a recommendation to the Pension Fund Committee to assist in its effective and efficient governance and administration of the Scheme.
Following the Pension Fund Committee on 7 December 2017 the Local Pension Board had noted that there was only a short time for the Investment Managers to make their presentations and answer questions from the Committee due the volume of business to be conducted in the time available. The Board appreciated that the meeting was often long and received a large amount of detail in the reports. However the reports of the Investment Managers and the ability to question them was vitally important and should not, if possible, be constrained to a short time at the end of a long meeting. The Board had made the recommendation previously that the Committee should plan and allow for sufficient time for questioning of the Managers and if necessary start the meeting earlier or invite the Managers following a lunch break.
The Board therefore recommended that the Pension Fund Committee give consideration to the timing of the agenda items with a view to allowing for sufficient time for questioning of the Managers and if necessary start the meeting earlier or invite the Managers in at an earlier stage.
Members discussed the Board’s recommendation and considered whether sufficient time was allocated to the Investment Managers and whether allowing more time would be reasonable in terms of the governance of the Committee. Members acknowledged that it was about balancing whether it was proportionate to allocate more time to Investment Managers which represented a small proportion of the Fund’s assets, against the volume and importance of business the Committee had to consider.
The Chairman advised that when this was raised at a previous meeting discussions were held with DCC Pensions staff, the advisers and the Corporate Director of Resources to make the most of the opportunity for the Committee to gain knowledge from the Managers.
The following was put into place:-
1) Managers were sent a template of relevant information the committee needed
2) Managers were asked to keep their presentations relevant to the Fund and be concise
3) Advisers were asked to produce a brief overview of each visiting Manager and suggest some questions which members may wish to ask.
This approach received positive feedback from Members at the September 2017 meeting and it was proposed that the situation be reviewed again after the June 2018 meeting. As always the needs of the Pension Fund, Members of the Fund and the Committee were the primary concerns. Whether the meetings were helpful or a useful way to spend time for the Investment Managers was not the concern of the Committee.
Resolved:
That the recommendation of the Local Pension Board be noted and the response of the Committee as outlined above be agreed.