The Pension Fund Committee of Harrow Council met on Monday 9 September 2024 to review the fund's actuarial funding position, governance compliance, and investment manager controls. The committee noted an improved funding position and approved an updated Governance Compliance Statement.

Pension Fund Funding Position

The committee received an update on the London Borough of Harrow Pension Fund's actuarial funding position as of 30 June 2024. The report indicated an improved funding level of 128%, a significant increase from the 96% recorded at the 2022 triennial valuation. This positive trend suggests the fund's assets are more than adequately covering its liabilities. The committee resolved to note this improved funding position.

Governance Compliance

A review of the Pension Fund Governance Compliance Statement was presented to the committee. While the fund was largely compliant, concerns were raised regarding full compliance with Principle A. Specifically, the council's constitution does not currently allow for employers other than the council itself to be represented on the committee, and there remains an unfilled vacancy on the Pension Board. Despite these minor issues, the committee resolved to approve the updated Governance Compliance Statement for adoption.

Investment Managers' Internal Controls

The committee reviewed the latest internal controls reports from the fund's investment managers. These reports, which included some exempt appendices, indicated that controls are operating effectively. Where exceptions were identified, satisfactory management responses were in place. The committee noted that an updated report from La Salle was still awaited. The committee resolved to note the reports.

Pension Fund Risk Register

An updated Pension Fund Risk Register as at 30 June 2024 was presented. Key changes included modifications to an existing amber risk concerning the Pension Dashboards for the Local Government Pension Scheme (LGPS), the addition of a new amber risk related to potential cyber security attacks, and the escalation of a data protection breach risk from green to amber due to the potential for human error in bulk mailing processes. A green risk associated with the Public Sector Exit Cap was removed as the relevant legislation has been suspended. The committee resolved to agree to these changes to the Risk Register.

Urgent Business

The committee agreed to consider three urgent items: an update on London CIV and Investment Pooling Arrangements, an Investment and Managers Performance Review, and Investment Management Consultant Objectives.

Update on London CIV and Investment Pooling Arrangements

The committee received an update on the fund's investments in the context of government requirements for pooling and developments within the London CIV. The committee resolved to note the report.

Investments and Managers Performance Review

The committee reviewed the investment and managers' performance for the quarter ending 30 June 2024. The fund returned 1.3% net of fees during this period, underperforming its benchmark by 0.8%. The market value of investments increased by £7.40 million to £1.063 billion. The committee resolved to note the report.

Investment Management Consultant Objectives

The committee received the Investment Management Consultant Objectives, which were noted as being similar to those of the previous consultant. The committee resolved to approve the report.

Other Business

Councillor Nitin Parekh was appointed as the Vice-Chair of the Pension Fund Committee for the 2024/2025 Municipal Year. The minutes of the meeting held on 4 April 2024 were taken as read and signed as a correct record. No public questions, petitions, or deputations were received.