The Pension Policy & Investment Committee met on Wednesday, 17 January 2024, to discuss the Enfield Pension Fund's annual report and accounts, and to agree on the strategic asset allocation for the fund. Key decisions included approving the annual report and accounts, agreeing to the transfer of assets and liabilities related to Southgate College, and approving a revised strategic asset allocation.

Southgate College Transfer

The committee agreed to the transfer of assets and liabilities relating to Southgate College from the Enfield Pension Fund to the London Borough of Barnet Pension Fund. This transfer is a result of Southgate College merging with Barnet College in 2011 and is subject to the Secretary of State's consent. The basis for the transfer was agreed, with the effective date set for 1 April 2024, pending necessary approvals.

Pension Fund Annual Report and Statement of Accounts

The Pension Fund Annual Report and Statement of Accounts for 2022/23 was presented and approved by the committee. Ravi Lakhani, Head of Pension Investments, highlighted key figures from the report, including a fund value of £1.45 billion at 31 March 2023 and an investment performance of -5.5% for the year. The report detailed the reasons for the negative investment performance, attributing it to market conditions, a fall in equity markets, and the impact of rising interest rates on the bond portfolio. Members requested a more detailed breakdown of fees and a comparative analysis with other boroughs in future reports. Ravi Lakhani committed to providing a paper on fee transparency and a breakdown of fees for individual managers at a future meeting.

Investment Update and Strategic Asset Allocation

The committee received an investment update on the Enfield Pension Fund's investments and managers, along with a market update and investment outlook from Aon, the Fund's investment advisors. Members agreed to extend future meetings by an hour to allow for more in-depth discussion and learning on each asset class. Ravi Lakhani was tasked with identifying priorities for asset class reviews and training, and Aon was to provide an additional paper on the investment outlook for 2024.

A significant discussion took place regarding the Strategic Asset Allocation paper. Members expressed a preference for reviewing the Strategic Asset Allocation annually rather than every three years. The committee agreed to the proposed strategic asset allocation, with a key next step being a review of the bond portfolio to potentially reduce the number of managers and explore allocation to Private Credit. An additional meeting in February was scheduled for a training session on the bond portfolio, with a decision on how to proceed to be taken at the March meeting.

Other Matters

The committee noted the dates of future meetings, with the next scheduled for Wednesday, 20 March 2024. An update from the Pension Board was also received, highlighting changes related to the McCloud¹ remedy, a complex issue affecting pension funds. The idea of holding the Pension Board meeting immediately before or after the Pension Policy & Investment Committee meeting on the same day was discussed and considered an excellent idea for future discussion.

Following a Part 2 discussion, the recommended appointment of an Actuary was approved.