Issue - meetings

Victoria Moffett, Pensions and Investment Manager, presented this report to the Board, noting that it covered both the general risk register and the COVID-19 risk register and provided an update on the review of risk ratings which had been undertaken in September.

In respect of the general risk register, which was originally set before the pandemic impact, some risk assessment scores increased as set out in the report.

In respect of the Covid risk register which was originally set out after the pandemic impact had started, a number of risk assessment levels have reduced in light of experience.

In response to a query about the impact of the outcome of Brexit, the Board was advised that as UK Equities saw returns from overseas trading as well as the UK, Brexit should only impact a small part of the portfolio.  Investment Managers had undertaken historical research and were trusted to make appropriate risk adjusted decisions based on their professional opinion.  The UK Equity Alpha Fund comprised several underlying fund managers but Border to Coast was the Pool Manager and had made an assessment of how each portfolio was positioned based on their expertise as an FCA regulated investment company.  Discussions with Border to Coast and other partner funds regularly took place to ensure appropriate measurement was taking place.  The investment strategy had been set on long term values and assumptions so impacts were assessed on whether they would be short term in nature or result in long term change.  It was noted that there were a number of long- term pressures and that the Pension Fund Investment Sub Committee would review the strategy from time to time.  It was agreed that for future meetings, a note of the actions taken by the Pension Fund Investment Sub Committee would be included alongside the minutes where actions are not confidential in nature.

In response to feedback on the content of the general risk register, Chris Norton, Strategy and Commissioning Manager (Treasury, Pensions, Audit, Insurance, and Risk) agreed to give consideration to the amount of detail in the Action column, whilst recognising that the document is intended to be strategic in nature, and to pick up any specific concerns that Board Members might have outside the meeting.

Resolved –

The Local Pension Board noted the report.