Agenda and minutes

Apologies for absence were received from Councillor Sam Webber and Councillor Julie Ireland attended as his substitute.

There were no additional declarations of interest.

In accordance with the Council’s Constitution, questions that are not specific to reports on the agenda must have been received in writing 10 working days before the date of the meeting.

Questions specifically relating to reports on the agenda should be received within two working days of the normal publication date of the agenda. Please ensure that questions specifically on reports on the agenda are received by the Democratic Services Team by 5.00pm on Thursday 16 February 2023.

No questions had been received.

RESOLVED: That the minutes of the meeting held on 1 December 2022 be approved.

The Chairman observed that matters outstanding from previous meetings would be considered within the discussions on other agenda items.

RESOLVED: That matters outstanding be noted.

Report FSD23020

The report provided a summary of the investment performance of Bromley’s Pension Fund in Quarter 3 of the 2022/23 financial year and included information on general financial and membership trends of the Pension Fund as well as details of key developments in the Local Government Pension Fund (LGPS) expected during the next five years.

With regard to the Strategic Asset Allocation Review undertaken by MJ Hudson, a Member noted that it was proposed to reduce equity exposure and increase diversification within the Fund by investing £20M into both the US Dollar account and the Fidelity Fixed Interest portfolio now that fixed interest returns had increased, as well as £15m into both of the Fund’s Multi-Asset Income portfolios.  Whilst this would serve to bring the Fund more into line with the Strategic Benchmark, the Member expressed a preference for greater investment in Multi-Asset Income portfolios as a potentially more lucrative long-term investment option.  The Chairman observed the proposed investment represented a minor change within overall fund and that the rebalancing would help ensure the Fund had sufficient liquidity in the short to medium-term.  Another Member expressed a preference for Fixed Interest investments as Multi-Asset Income portfolios outsourced the Fund’s investment choices. 

Work had also been undertaken by MJ Hudson to explore a potential investment in the Local Authority’s Meadowship Homes Scheme which had concluded that the proposed investment currently offered relatively poor value in comparison with other opportunities.  The Chairman suggested the investment not be pursued at this time; however, another Member argued that the wider benefits of the investment should be taken into account, including its long-term security.  Other Members supported this view and the Committee agreed that further work be undertaken to compare the Meadowship Homes Scheme with another social housing investment and presented to a future meeting of the Pensions Committee.

The Senior Advisor: MJ Hudson advised the Committee that the Founder and Chief Executive Officer of MJ Hudson had recently stepped down and the company would be sold.  Whilst this was not anticipated to impact overall service provision, the situation would be kept under review with regular updates provided to the Local Authority.

RESOLVED: That:

·  The contents of the report and information contained in the related appendices be noted including:

a)  Appendix 5 which detailed:

·  Bromley’s Strategic Asset Allocation review by independent adviser MJ Hudson and proposed actions for rebalancing the portfolio;

·  Advice from MJ Hudson on the opportunity to rebalance and diversify into affordable housing in Bromley via a potential new phase in the Meadowship Homes project; and,

·  Advice from MJ Hudson around currency hedging.

b)  Appendix 8 which set out the key developments in the LGPS expected during the next 5 years; and,

·  MJ Hudson’s recommendation to rebalance the portfolio as outlined in Appendix 5 be agreed and funds transferred.

RESOLVED that the Press and public be excluded during consideration of the items of business referred to below as it is likely in view of the nature of the business to be transacted or the nature of the proceedings that if members of the Press and public were present there would be disclosure to them of exempt information.

The following summaries

refer to matters

involving exempt information

The Part 2 (Exempt) minutes of the meeting held on 1 December 2022 were approved.

The Committee considered a Part 2 (Exempt) report on the Pension Fund Triennial Valuation.

The Committee considered a Part 2 (Exempt) report presenting the Pension Fund 2022 Draft Funding Strategy Statement.

The Committee considered a Part 2 (Exempt) report on Pooling Matters.