Current Issues in the LGPS - April 2018
04 Apr 2018 - Estimated reading time: 3 minutes
April 2018 is a date that has been etched in people’s minds when it comes to pooling. Now that it has arrived, it does not mean that ‘the work’ stops. Over the coming twelve months we anticipate key areas of focus being how Funds’ investment strategies can be ‘mapped’ into their Pool, ensuring the transition process will take place effectively and efficiently and how funds assess the performance of the Pool on their behalf.
Environmental, social and governance matters (ESG)
2017 saw an increased focus on ESG related matters, most notably climate change and carbon risk (including the Task Force on Climate-Related Financial Disclosures’ report). We encourage Funds to build on their recent progress on ESG aspects, thinking about their ESG objectives and beliefs, how these are reflected in Funds’ policies, how they are translated into the Fund’s investment arrangements and what training/communications you have in place to help educate members.
It’s that time of year again when some of you will be working on your report and accounts. As with previous years, you are expected to set out some risk analysis, in particular disclosures relating to: Market risk (which can be subdivided into “currency risk”, “interest rate risk” and “other price risk”); Credit risk; and Liquidity risk. Qualitative and quantitative disclosures are required for each of the three risk categories. If you wish to discuss further please get in touch.
Pension Fund’s Got Talent
The Pensions Regulator continues its 21st Century Trusteeship campaign, with the recent issue of Chapters 5 and 6: a call for diversity of talent and skills within your Committee and Board (Chapter 5) as well as your advisers and service providers (Chapter 6) to ensure a well-managed Fund. We know this can be a challenge at Committee level, as officers have no control over the voting public, but by taking a holistic approach across Committee, Board and advisers you can ensure you have the best possible combination of talents to call upon. Please read our Summary for further thoughts.
GDPR is nigh
The recent Facebook/Cambridge Analytica data issue highlighted how quickly reputation can be damaged. We take data security very seriously and are making changes to our systems to minimise the data we work with and archive or delete it when it’s no longer needed. In particular, our data portal removes fields in the Universal Data Extract (UDE) that aren’t needed for the task in hand before the data is loaded onto our other systems. If you have not already done so, we would be grateful if you could sign the Variation Agreement that we issued recently to cover GDPR-compliant changes to all contractual terms and conditions. We understand that the National Framework is on the verge of issuing its own changes to terms and conditions and that these will apply instead of our Variation Agreement - please however sign our Variation Agreement as it applies to contracts beyond the Framework, such as e-business services e.g. focalPOINT. If you’re keen to learn more about GDPR and what Hymans Robertson is doing, please visit our Trust Centre.