This meeting will consider the minutes of the previous meeting and the exempt minutes from the meeting held on 27 September 2024. An update from the Local Pensions Board Chairs meeting held on 21 October 2024 will also be provided.

Internal Audit Reports - Recommendations Progress Log

The Board will be asked to note the recommendations, summary of actions and the progress made against the recommendations in the:

• Staffordshire Pension Fund - Governance Arrangements 2023/24 audit report.
• Staffordshire Pension Fund – Pensions Administration 2023/24 audit report.

Local Government Association/Scheme Advisory Board Update

An update on current issues being considered by the Local Government Association and Scheme Advisory Board will be provided. The Board will be updated on the following:

Local Government Association Update

• Pensions Dashboard Programme
• DLUHC Reverts to MHCLG
• Government Launches Pensions Review
• McCloud remedy

Scheme Advisory Board Update

• Good Governance
• SAB opt out survey
• Gender Pensions Gap
• SAB published 2023/24 Annual Report

Staffordshire Pension Fund Risk Register - Governance

The Board will be asked to note the risks relating to Governance from the Staffordshire Pension Fund Risk Register. The risks are listed in Appendix 1 of the agenda. There are eight areas of medium risk, these relate to:

• Review against governance standards
• 3rd party custody arrangements for Private Market investments
• Knowledge of legislative change
• Potential for regulatory changes on asset pooling. > The medium risk areas are deemed to be well managed and have appropriate controls in place, the scores have increased predominantly due to the uncertainty of regulatory and legislative changes such as the risk of further pool/fund mergers, the implementation plan for compliance with the Pension Regulators General Code of Practice and any final proposals that may arise from the Good Governance Project.

Matters arising from the Pensions Committee

The Board will consider the minutes from the Pensions Committee meeting held on 27 September 2024. The Committee discussed a presentation from Northern Trust on investment performance, noting:

• The concentration of assets in the equity element of the portfolio.
• Microsoft's status as a good ESG investment.
• The influence of dominant companies on portfolio performance.
• The importance of maintaining a diversified portfolio.

The influence of dominant companies, referred to as the magnificent 7 on portfolio performance was another major topic discussed at the meeting. The risks associated with high concentration in these entities were noted, and it was emphasized that while an Investment Manager aims to mitigate these risks, complete protection is not possible.

The Committee also received a presentation from Hymans Robertson about the Board's communication with participating employers.

The key takeaway was the importance of communication in helping employers understand their contributions and the strategies involved. The discussion also highlighted the historical context of employer contributions and the evolution of strategies over time.

LGPS Central Pool - Local Pensions Board Chairs Meeting of 21 October 2024

The Board will receive the notes from the LGPS Central Pool - Local Pensions Board Chairs Meeting of 21 October 2024.