This week, the Merton Council held several important meetings, with significant discussions and decisions impacting the community. Here's a summary of the key points and decisions made.

Pensions Committee - Thursday 27 June 2024

The Pensions Committee convened to review the performance of the Merton Pension Fund and scrutinise the audit plan for the coming year. The committee noted the content of both presentations.

Audit Planning

The committee received a presentation on the proposed audit plan for the Merton Pension Fund by the external auditor, BDO. This plan included a review of the fund's financial statements and an assessment of its risk management processes.

During the meeting, Councillor Simon McGrath raised concerns about the valuation of unlisted assets, referencing issues experienced by other funds, notably the Universities Superannuation Scheme. BDO clarified their approach, stating:

We have procedures to assess the valuation of illiquid assets, which is normally undertaken by an external valuer... We review the methodologies used by the valuer, challenge their assumptions, and assess the sensitivity of the valuation to changes in key assumptions.

This response highlights the rigorous process in place to ensure accurate valuation and risk management of the pension fund's assets.

Investment Performance

The committee also reviewed the investment performance of the Merton Pension Fund for the first quarter of 2024. The fund outperformed its benchmark, returning 2.2% against a target of 1.8%. This positive performance was primarily due to strong returns across various asset classes, particularly global equities.

Councillor John Dehaney enquired about the impact of the ongoing conflict in Ukraine on the Fund's investments. The fund manager responded:

The Fund has limited direct exposure to Russia and Ukraine. However, the conflict has had indirect impacts on global markets, particularly in the energy and commodity sectors.

This insight underscores the broader market implications of geopolitical events and their influence on investment strategies.

Cancelled Meetings

Two scheduled meetings were cancelled this week:

• Health and Wellbeing Board on Tuesday 25 June 2024.
• Wimbledon Community Forum on Wednesday 26 June 2024.

No further information was provided regarding these cancellations.

This concludes the summary of this week's council activities. For more detailed information, you can visit the respective meeting links provided above.