Management Report. Investment Report. Financial Statements highlights. Benefit Statements. Pension Board

Transcription

1 Pension Fund Update

2 Management Report Investment Report Financial Statements highlights Benefit Statements Pension Board

3 Structure Training Participating Employers Membership Cash Flow Statements

4 Pension Fund Structure as at 2 February 2016 Property CBRE (Real Estates) UK Equities Legal and General Fixed Interest BlackRock Insight Investment Consultant Hymans Robertson Legal Framework Pension Fund Committee and Panel BBC Officers Finance & Legal Actuary Hymans Robertson Global Equities Trilogy BlackRock Legal and General Northern Trust (Custodian) Bedfordshire Pension Fund Employers Multi Asset Absolute Managers Invesco Newton Pyrford Board NB BlackRock, Legal and General are Passive Managers their target is to match an index Pensioners Paid Via altair Employees

5 The Pension Fund has adopted the CIPFA Pensions Finance Knowledge and Skills Framework. Those charged with pension scheme governance should have access to skills and knowledge to do role effectively. There are 6 areas of knowledge identified.

6 1. Pensions legislative and governance context 2. Pensions accounting and auditing standards 3. Financial services procurement and relationship management 4. Investment performance and risk management 5. Financial markets and product knowledge 6. Actuarial methods, standards and practices

7 The Pension Fund has a training plan and a review is in the Annual Report. Highlight in 2014/2015 was a full day training session with other LGPS Funds being involved.

8 31/03/ /03/2015 Type of Employer Large Scheduled Bodies 9 9 Admitted Bodies Colleges/ Universities 6 6 Academies Town & Parish Councils

9 31/03/ /03/2015 Type of Employer Large Scheduled Bodies 12,354 13,633 Admitted Bodies 1, Colleges 1,209 1,914 Academies 2,430 3,392 Town & Parish Councils ,442 19,931

10 Luton Borough Council 4,339 4,685 Central Bedfordshire Council 3,975 4,485 Bedford Borough Council 2,976 2,884 Academies 2,430 3,532 Police and Crime Commissioner University of Bedfordshire 687 1,148 Cranfield University Other bodies 1,747 1,805 17,442 19,931

11 60,000 50,000 40,000 30,000 20,000 10, Active members Pensioners Deferred Pensioners

12 31/03/13 TOTAL M 31/03/14 TOTAL M 31/03/15 TOTAL M Income Expenditure * TOTAL Net Cash Flow *The effect of the centralisation of Probation ( 23m)

13 1) Funding Strategy Statement This links the Statement of Investment Principles (SIP) to the Valuation 2) Governance Policy How we do things 3) Governance Compliance Statement How we compare with good practice 4) Communication Policy

14 1) Statement of Investment Principles (SIP) This is the document that says what the Fund is trying to do, with whom and how risks are to be managed 2) Actuarial Statement

15 Investment Activity and Performance

16 Asset Class Allocation Range % % UK Equities 19 Overseas Equities 31 Total Equities Fixed Interest Property Multi Asset Absolute Returns Cash/Opportunistic Total 100

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18 Assets 31/03/13 TOTAL M Assets 31/03/14 TOTAL M Assets 31/03/15 TOTAL M UK Equities Overseas Equities Fixed Interest Property Alternatives Cash TOTAL 1, , ,704.2

19 Global Tactical Asset Allocation (GTAA) Commodities Futures Multi Asset Assets 31/03/13 TOTAL M Assets 31/03/14 TOTAL M Assets 31/03/15 TOTAL M Absolute Return ALTERNATIVES TOTAL

20 Barings Invesco Newton - 190m Absolute return Multi asset + 125m Absolute return Multi asset + 75m Absolute return Multi asset BlackRock 80m Switch from corporate bonds to gilts Insight 65m Switch to higher investment target

21 L&G 50m UK Equities switch to FTSE 250 Lazard - 170m Global Equity mandate withdrawn BlackRock + 170m Global Equities

22 Actual To 31/03/15 Benchmark To 31/03/15 1 Year 11.3% 8.5% 3 years (pa) 8.9% 8.3% 5 years (pa) 7.4% 8.1% Source: Hymans Robertson

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24 Summary Accounts Statement and Reports Expenses 2014/2015 Audit View

25 Please see leaflet circulated

26 1) Statement of Responsibilities 2) Auditors Report 3) Actuarial Report Present Value of Promised Retirement Benefits

27 Admin Invest Support Invest Management Oversight and Governance / / / / / / /14 onwards new CIPFA Guidance

28 2013/14 Actual /15 Estimate /15 Actual 000 Administration Authority Systems and development costs Other TOTAL 1,176 1,183 1,073

29 2013/14 Actual /15 Estimate /15 Actual 000 Administering Authority Training Audits Internal and external Professional Advice TOTAL

30 External Audit 2014/2015 Annual Governance Report Accounts unqualified No recommendations BUT we must not be complacent as it is important that you, the employers, pay the right money at the right time with the right information.

31 Internal Audit Governance Administration & Payroll Investment Management - Full assurance - Full assurance - Full Assurance

32 Active member benefit statements only being done on request this year Problems with data from employers and statement with additional benefit structure All deferred members sent a statement Pension Regulator informed of the issue and updated in November 2015 Arrangements are being put in place to issue 31 March 2016 in August 2016

33 Pension Board created in line with LGPS Regulations to assist the Administering Authority a) secure compliance with the Regulations, any other legislation relating to the governance and administration of the Scheme, and requirements imposed by the Pensions Regulator in relation to the Scheme and; (b) to ensure the effective and efficient governance and administration of the Scheme.

34 The board consists of 4 Employer Representatives and 4 Employee Representatives There is a vacancy for each! The Board has met 3 times and its meetings are available on the Bedford Borough Council website

35 Any Questions?