Agenda item

The Chair welcomed Denise Jones – Head of Change Management of Link Asset Services to provide a presentation on Key Milestones and Progress in respect of the sub-funds.

Ms Jones provided the Committeewith a list of provisional dates for the key milestones for the establishment of the Partnership’s sub funds. These funds would meet the needs of the investing authorities, enabling them to execute their differing asset allocation strategies. It was reported that the date of agreement for the initial sub fund, scheduled for the 28th March 2018,  had been delayed and it was anticipated that this would now be presented alongside approval of the fund prospectus, at an additional meeting of the Committee to be arranged in May 2018.  Link would continue discussions with the Investment Managers and it was now proposed that the FCA submission would be submitted by the 31^st May 2018, with the Fund launch in  September/October 2018.

Ms Jones advised that alongside the initial sub fund,Link would progress Tranche 2 and Tranche 3 sub funds, both of which were currently scheduled to launch in November 2018 and February 2019 respectively.

In referring to her presentation, Ms Jones advised that in terms of progress to date, the initial fund submission proposal had been considered by the Officers Working Group (OWG) in February 2018 with an initial proposal for a Global + Regional fund and also an additional option for a Global only fund. Having considered the feedback received from the OWG, Link had presented 5 revised options to the Group in March 2018.  The final proposals discussed with the Treasurers of the 8 Authorities provided two proposals namely:-

·         Option 1a, - 2 existing and 1 new manager – Link to appoint managers  (Global Core Fund)

·         Option 4a, 7 new managers (5 Global and 2 Regional) –Russell to be appointed as the primary manager in the prospectus and delegate to the other 7 managers.

Mr Chris Lee suggested that, for clarification purposes, the two proposals put forward should be regarded as High Alpha Global proposals.

MrDafydd Edwards advised that the original timetable produced by Link had been revised in order to ensure that the proposals were more comprehensive, this would allow the Committee Members and officers to have all relevant information and sufficient time to report back and discuss the proposals with their respective funds.

In terms of other progress, the Committee was advised that Link had engaged with the three investment Managers on the first sub fund and due diligence meetings had been scheduled. In addition the draft prospectus had been completed and forwarded to Burges Salmon for review and comment, and following further input from Eversheds the prospectus would then be discussed by the Committee.  In addition, Link and Russell Investments had held briefing sessions with all 8 Constituent Pension Fund Committees.

In conclusion, the Committee was advised of the next steps in the process, as detailed within the presentation, and offered the opportunity  of asking questions, following which, the Chair thanked Ms Jones for her  attendance.

UNANIMOUSLY RESOLVED that the presentation be received.