Agendas, Meetings and Minutes - Agenda item

Agenda item

LGPS Central Update (Agenda item 6)

Minutes:

The Committee considered the LGPS Central Update and received a presentation by Joanne Segars, Chair, Mike Weston, newly appointed Chief Executive Officer and Callum Campbell, Head of Client Services and Stakeholder Relations from LGPS Central.

 

In the ensuing debate, the following points were raised:

 

·         Philip Hebson commented that although there were examples of good practice within LGPS Central, the overall perception was that the Pool was not meeting the aspirations and requirements of its partner funds. Other pools seemed to have a better approach to partnership working. Joanne Segars acknowledged that the Pool needed to work harder to ensure that it understood its partnership role and work more closely with partners. There were examples of good practice within the Pool which needed to be replicated throughout the organisation. Mike Weston added that he was keen to listen and take on board the concerns of partner funds  

·         In response to a query, Joanne Segars commented that the Pool was in conversation with and learning from the best practice and experiences of other pools. Mike Weston added that he had only been in post for a short period of time and needed to understand the issues before taking the appropriate action

·         In response to a query about the Pool’s approach to infrastructure investment and links with other pools, Mike Weston commented that the Pool had adopted an infrastructure asset plan. Joanne Segars added that different pools were at different stages with their infrastructure investment. Conversations were taking place to establish mutually beneficial opportunities for investment

·         The Pool needed to understand that, with the increasing financial pressures facing councils, it was crucial for pension funds to be able to capture savings. Joanne Segars responded that the Pool was aware of the budget constraints facing councils and all investment fund costs were being reviewed in order to demonstrate budget savings. This process would be undertaken in conjunction with elected members from partner funds

·         Was it difficult to recruit staff to the Pool given the its headquarters were located in Wolverhampton and Matlock? Mike Weston indicated that these locations had not proved an issue to date with recruitment. The lease of the building in Wolverhampton ended in 2021 and its viability as a headquarters would be reviewed at that stage

·         There was very little in the content of the presentation by LGPS Central that could be considered to be confidential in nature. As much information as possible should be kept in the public arena

·         Philip Hebson clarified that the review of the Equity Protection Strategy had been offered by LGPS Central rather than requested by Worcestershire Pension Fund as referred to in the presentation

·         In response to a comment, Callum Campbell acknowledged that for this Fund the cost sharing and cost saving models were linked and that some of the recent changes had negatively impacted on the projected savings for the Fund. Joanne Segars added that this issue highlighted the need to work together to ensure the Pool’s strategy was linked with that of the partner funds

·         Philip Hebson commented that it was necessary for the Fund to undertake due diligence assessments on the three managers appointed by LGPS Central to oversee investment in the emerging markets. If the Pool had consulted with the Fund earlier in the appointment process, this additional work might have been unnecessary. Callum Campbell acknowledged this concern and appropriate action would be taken in the future

·         Was any action being taken to address the negative impact on this Fund’s projected cost savings? Joanne Segars responded that there was a piece of work ongoing to address these concerns. Rob Wilson added that a report on cost savings should be available for the meeting of the Committee in June.

 

RESOLVED that the LGPS Central Update and presentation provided at the meeting be noted.

 

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