Agenda and minutes

None.

Members are invited to declare at this stage of the meeting, any relevant personal and prejudicial interests and discloseable pecuniary interests in any matter to be considered at this meeting.

None declared.

To approve the minutes of the previous meeting, held on 2 November 2021, as a correct record.

The minutes of the previous meeting held on Thursday 2^nd November 2021 were agreed as an accurate record.

To update the Pension Board on various pensions administration matters as part of its remit to oversee the administration of the Brent Pension Fund.

Sawan Shah (Brent Council - Senior Finance Analyst) introduced the report updating the Pension Board on various pensions administration matters as part of its remit to oversee the administration of the Brent Pension Fund.

In considering the report, the Board noted:

• The Pension Administration performance update for the period October – December 2021, as detailed within Appendix 1 of the report.
• The percentage of cases processed on time had remained high with a quarterly average of 99.1%. This was above the 98% target.
• An update was then provided to the Board regarding Helpdesk call performance. The Fund had improved performance in its wait times through the quarter with performance of 3 minutes 59 seconds in October, 3 minutes 29 seconds in November and 3 minute 14 seconds in December. All three months were at or below the target time of 4 minutes.
• The number of complaints remained low, and the Fund’s data scores improved over the period.
• In relation to the data cleanse project carried out by the Fund, Members were reminded that the Fund had previously commissioned a separate project to review and resolve outstanding leaver queries. Additionally, the work commissioned regarding the Guaranteed Minimum Pensions (GMP) reconciliations projected was also highlighted, with the Board updated that both work streams were now coming to a close. The data cleanse project was concluded on 22 February 2022, with 88% of cases within its scope being completed. The remainder of cases would be completed as part of the year end process. At the closure of the GMP project on 03 February 2022, all 1,448 cases had been reviewed and actioned with remedial action taken where required.
• The Board then received an update on the re-enrolment process. Members were notified that every three years every employer had a duty to assess and reenrol staff who had left workplace pension schemes. The intention of this process was to ensure staff were aware that when they opted out of the scheme, they were potentially losing out on benefits in retirement, as well as ensuring automatic enrolment onto the scheme. A full breakdown of the statistics on reenrolment was provided in section 7.5 of the report. 
• The Board were provided with an update on the LGPS bulletins issued since the last Pension Board meeting, which had been included as appendices to the report. The Board’s attention was drawn to a Government white paper, which had suggested that there was an intention for 5% of LGPS assets to be invested in local projects. Further detail was being sought as to what this would mean in practice.
• Members noted that the minimum pension age would increase from 55 to 57, effective from 2028.

John Crowhurst (Operations Director, LPP) then provided the Board with a presentation outlining key business and performance updates within the LPP Quarterly & Annual Brent Pension Fund Administration Report.  Key issues highlighted were as follows:

Referring firstly to the Quarterly Administration report, members were advised this covered the period October – December 21, which had  ...  view the full minutes text for item 5.

To present the updated Risk Register for the Brent Pension Fund Pensions Administration Service.

Rubia Jalil (Brent Council - Finance Analyst) presented a report updating the Board on the Risk Register for the Brent Pension Fund Pensions Administration

Service.

In considering the report, the Board noted:

·                There had been two key risks added to the Risk Register, related to data migration from Altair into Civica UPM undertaken by LPP and a second risk to capture the impact of the exposure of the Brent Pension Fund to Russian, Ukrainian and Belarusian assets. The risk in relation to data migration had been categorised as low to medium, whilst the exposure to Russian, Ukrainian and Belarusian assets. This was detailed in sections 3.5 and 3.6 of the report.

·                The Board were also updated that the risk of Covid-19 had been decreased from medium-high to low-medium, due to fewer variants being reported in recent months.

Members were then invited to ask questions, with the issues raised summarised below:

·                It was asked whether the issue of cyber security was covered in the risk register, and it was clarified that this was the case.

The Board welcomed the report and as no further issues were raised it was RESOLVED to note the report including the key changes set out in section 3.5.

To receive the Brent Pension Fund Q3 2021 Investment Monitoring Report.

The Board received the Brent Pension Fund Q3 2021 Investment Monitoring

Report. It was reported that the monitoring report had been considered in detail by

the Brent Pension Fund Sub Committee on 21 February 2021 who had noted the key issues as set out in the report.

In considering the report, the Board noted the following:

·         The Fund had added £80m to its portfolio over this period, representing a combined return against assets of 6% (ahead of the benchmark return of 5.1%).

·         The main driver of returns were the Fund’s growth holdings with LGIM’s global equity mandate the primary contributor in monetary terms and the Global and Private Equity Funds also performing well.  Within the Fund’s Income holdings the Baillie Gifford multi-asset fund had also produced strong performance.

·         Emerging market equities were noted as delivering a lower rate of return, as well as the Capital Dynamics Infrastructure Fund and Alinda Infrastructure Fund, although it was noted these had not had a significant bearing on the Fund overall, totalling 0.5% of the Fund’s assets.

Members were then provided with a summary of the climate risk analysis and carbon intensity by Fund Managers. Key issues highlighted were as follows:

·                As a starting point the Fund was reporting in line with information produced by its Pool, the London CIV.  The Fund would, however, seek to evolve its climate risk monitoring process by monitoring against further metrics.  Key metrics were currently focussed around weighted average carbon intensity and Fossil Fuel exposure with the information covered capturing approx. 88% of the Fund’s assets, as at 31 December 21.  Members were assured this provided an accurate and reliable level of data.

·                Having noted the relative carbon intensity for each Fund as a % of assets members were advised that despite representing only 15% of Fund assets the Baillie Gifford Diversified Growth fund was responsible for 29% of the Fund’s total carbon intensity. Whilst the LGIM Global Equity Fund represented the highest % of carbon intensity (42%) it was also recognised that this represented 53% of the Fund’s assets.  Focussing on these areas, members were advised of the specific investment profile relating to the Diversified Growth Fund, which had impacted on their carbon intensity rating including investment in the German energy company RWE. It was noted that as part of the London CIV, progress would continue to be monitored in terms of the carbon intensity of that fund.

·                In terms of fossil fuel exposure, it was updated that the Fund had a 6.2% exposure to fossil fuels, in comparison to the global average of 7.3%, meaning that the Brent Fund was lower than the global average, though the Fund was still looking to decrease this level further.

Members were then updated on the impact that the conflict in Ukraine could have on the Fund. The Fund had reviewed its exposure to assets in Russia, Belarus and Ukraine, and it was noted that the Fund only had small exposure to those regions, both in the number of holdings,  ...  view the full minutes text for item 7.

This report presents an update on progress against the Fund’s net zero transition roadmap.

The Board received the report providing an update on progress against the Fund’s net zero transition roadmap, as detailed within the progress update included as Appendix 1 to the report. It was reported that the report had been considered in detail by the Brent Pension Fund Sub Committee on 21 February 2022, who had noted the current position and progress made in the Roadmap. It was noted that as part of this agenda item, the Sub-Committee had agreed in principle the climate metrics for the Fund going forward, as well as next steps on the roadmap, which included increased reporting on carbon exposure.

Members welcomed the report and with no further issues raised it was RESOLVED to note the update provided.

This report provides an update on the 2022 valuation process, in particular on the key financial and demographic assumptions that drive the overall funding level and employer contribution rates.

Members are asked to note that as the full report contains exempt information it has been included for consideration in the closed session of the meeting (Agenda Item 15 refers).

The Board received a report which provided an update on the 2022 valuation process, in particular on the key financial and demographic assumptions that had driven the overall funding level and employer contribution rates. The Board noted the inclusion of a more detail paper included for consideration as an exempt item.

The Board noted that both the Sub-Committee and the Pension Board had received training on this subject prior to the Committee meeting in February, and that Officers had reviewed these assumptions in detail with the actuary.

Members welcomed the report and with no further issues raised, it was RESOLVED

to note the report.

This report presents the final version of the Pension Fund Annual Report for the year ended 31 March 2021, following the conclusion of the external audit.

The Board received report which set out the final version of the Pension Fund Annual Report for the year ended 31 March 2021, following the conclusion of the external audit.. It was reported that the report had been considered in detail by the Brent Pension Fund Sub Committee on 21 February 2022.

Members welcomed the report and with no further issues raised, it was RESOLVED

to note and approve the contents of the Brent Pension Fund Annual Report 2020/21. The Board also thanked Officers for their work in being one of the first local authority pension funds audited by Grant Thornton to have their annual report review completed.

The purpose of this report is to summarise the outcome of the Actuarial Services tender and seek authority to procure a contract for Custodian Services and Investment Management Services.

The Board received a report which summarised the outcome of the Actuarial Services tender and sought authority to procure a contract for Custodian Services and Investment Management Services. It was reported that the report had been considered in detail by the Brent Pension Fund Sub Committee on 21 February 2022

Members welcomed the report and with no further issues raised, it was RESOLVED to note the report and to note the re-appointment of Hymans Robertson LLP as actuary for the Brent Pension Fund.

This report is for noting and presents members with an update on engagement activity undertaken by LAPFF (the Local Authority Pension Fund Forum) on behalf of the Fund. The Fund’s commitment with LAPFF and its work demonstrates its commitment to Responsible Investment and engagement as a way to achieve its objectives.

The Board received a report providing an update on engagement activity undertaken by LAPFF (the Local Authority Pension Fund Forum) on behalf of the Fund. It was reported that the report had been considered in detail by the Brent Pension Fund Sub Committee on 21 February 2022.

Members welcomed the report and with no further issues raised, it was RESOLVED

to note the report.

Notice of items to be raised under this heading must be given in writing to the Head of Executive and Member Services or her representative before the meeting in accordance with Standing Order 60.

None.

The dates for the programme of meetings in the 2022/23 Municipal Year will be confirmed as part of the Council’s Calendar of Meetings.

NOTED that dates scheduled for future meetings of the Pension Board would be agreed by Full Council as part of the 2022/23 calendar year of meetings.

The press and public will be excluded from the remainder of the meeting as the reports to be considered contain the following category of exempt information as specified in Paragraph 3, Schedule 12 A of the Local Government Act 1972, namely:

“Information relating to the financial or business affairs of any particular person (including the authority holding that information)”

At this stage in proceedings the Board RESOLVED that the press and public will be excluded from the remainder of the meeting as the reports and appendices to be considered contained the following category of exempt information as specified in Paragraph 3, Schedule 12A of the Local Government Access to Information Act 1972, namely:       

“Information relating to the financial or business affairs of any particular person (including the Authority holding that information).”

Having passed the above resolution the live webcast was ended at this stage of the meeting.

To receive a report from the Director of Finance providing an update on recent developments regarding the Brent Pension Fund Investments held within the London CIV (LCIV).

The Board received a report, which provided the latest update on recent developments regarding the Brent Pension Fund Investments held within the London CIV (LCIV).  It was reported that the report had been considered in detail by the Brent Pension Fund Sub Committee on 21 February 2022, who had noted the current position and progress made in the Roadmap. The update included the LCIV Investment review for the period ending 31 December 21 (as detailed in Appendix 1 of the report) which provided an investment summary with valuation and performance data for Brent’s ACS holdings along with a market and LCIV activities update.  Also included (as detailed in Appendix 2 of the report) was the LCIV quarterly investment review which included Brent’s investments in the LCIV Infrastructure fund along with valuation and performance data for the underlying portfolio investments and an update on pipeline investments.

Members welcomed the report and with no further issues raised, it was RESOLVED

to note the report.

This report provides the full update on the 2022 valuation process, in particular on the key financial and demographic assumptions that drive the overall funding level and employer contribution rates.

The Board noted that this item had been addressed in the public section of the meeting.