Decision details

At an informal Meeting of the Pension Fund Committee held on 4th June 2021 Members considered how the Fund was to allocate it’s investment assets. The Committee’s considerations were submitted to the Chief Executive Officer and he agreed that the following recommendations be approved:-

(i) That an investment in Border to Coast’s listed alternatives fund be agreed to in principle

(ii) That the changes set out in paragraph 5.16 of the report, as detailed below, be agreed -

(a) Terminate the investment with Veritas
(b) Reinvest the proceeds in Border to Coast’s corporate bond fund up to the target weighting of 7.5%
(c) Reinvest the balance of proceeds into PIMCO’s diversified income fund
(d) Allow the remaining equity protection to expire
(e) Terminate the conditional currency hedging arrangement.

(iii) That agreement be given to invest cash in excess of 0.5% of the value of the Fund into PIMCO’s diversified income fund

(iv) That the mandate with M&G be terminated and the proceeds reinvested into Border to Coast’s government bond fund

(v) That the proposed strategic benchmark allocations for the equity managers be noted, with a decision to be made once further consideration of the style balance has been undertaken.

By whom: Richard Flinton, Chief Executive Officer, under his emergency delegated powers and after consultation with the Pension Fund Committee.

PLEASE NOTE that as a non-executive function, this decision is not open to call in.

Under his delegated decision making powers in the Officers’ Delegation Scheme in the Council’s Constitution, the Chief Executive Officer has power, in cases of emergency, to take any decision which could be taken by the Council, the Executive or a committee.

Following on from the expiry of the Local Authorities and Police and Crime Panels (Coronavirus) (Flexibility of Local Authority and Police and Crime Panel Meetings) (England and Wales) Regulations 2020 (“the 2020 Regulations”), which allowed for committee meetings to be held remotely, the County Council resolved at its meeting on 5 May 2021 that, for the present time, in light of the continuing Covid-19 pandemic circumstances, remote live-broadcast committee meetings should continue, with any formal decisions required being taken by the Chief Executive Officer under his emergency decision making powers and after consultation with other Officers and Members as appropriate and after taking into account any views of the relevant Committee Members. This approach was reviewed by full Council at its July meeting and will be the subject of a further review at the November meeting of the full Council.

The Chief Executive Officer took all relevant information into account, including the details within the report, in exercising his emergency delegated powers in this matter, including considering the views of the members of the Pension Fund Committee, and agreed the recommendation as submitted from the informal Meeting held on 4th June 2021.

N/A.