Issue - meetings

The Committee considered the LGPS Central Update.

The Committee received a presentation from Mike Weston, Chief Executive Officer and Callum Campbell, Head of Client Services and Stakeholder Relations, LGPS Central.

In the ensuing debate, the following points were raised:

·         Mike Weston indicated that LGPS Central would be relocating to another office space within Wolverhampton, when the lease on the existing offices ended in June 2021. The new office spaces was high quality and would represent good value for money. To improve the existing office space to the necessary standards would not be cost-effective

·         Although the recruitment of staff was progressing, had there been any recruitment difficulties as a result of the existing office locations in Matlock and Wolverhampton, especially given that these locations were not at the geographical epi-centre of financial management in the UK? Had LGPS Central looked at office accommodation elsewhere, for example in Birmingham? Did the relocation of the Wolverhampton offices mean that the offices in Matlock were no longer required, especially with increase in the use of virtual meetings? Mike Weston responded that the offices in Matlock were used as a business continuity resource. The future use of the offices would be reviewed when the lease ran out in 2023. The search for an appropriate office space had covered the whole of the central partner funds region based on a set criteria with no preconceptions about the preferred location. The screening process identified a property in Wolverhampton as the best location for value for money

·         A query was raised about new fund launches, particularly in relation direct/indirect property investments and the illiquidity of some property funds, particularly in retail. Mike Weston indicated that the property and infrastructure investment team at LGPS Central were working on a new direct property fund. This fund would be resourced by a new cash allocation from partner funds. The different sub-asset classes demonstrated different performance levels, with retail struggling at present. The new fund would look at market behaviour to ensure that the best value and risk-adjusted returns were achieved for the asset class. The idea would be that such an investment would be for a long-term commitment and not on a buy and sell basis. Indirect property would be included in a separate fund and given that the number of partner funds already with such investments, it would make sense to consider creating such a fund. The direct property fund was scheduled to be launched this financial year but due to legal complications would slip into the next financial year. The indirect property fund was scheduled to be launched at the end of 2021/22 financial year

·         The pool’s commitment to Responsible Investment (RI) and the ESG elements of funding was welcomed. However, with the roll out of electric vehicles, concern was expressed about the adverse impact of lithium mining on the environment and pool should not lose sight of this. Mike Weston noted this concern and indicated that the RI team within LGPS Central were taking a holistic view of  ...  view the full minutes text for item 274