Local democracy

Issue - meetings

NORTHERN POOL

Meeting: 31/01/2019 - West Yorkshire Pension Fund Joint Advisory Group (Item 39)

39 NORTHERN POOL pdf icon PDF 73 KB

In accordance with the guidance from Government, West Yorkshire Pension Fund (WYPF) together with Greater Manchester and Merseyside are working towards the creation of an investment pool, Northern Pool (NP).

 

The report of the Director, West Yorkshire Pension Fund, (Document “Y”) sets out the progress in establishing the Northern Pool, covering:-

 

·           Drafting the Northern Pool Operating Agreement, including the Terms of Reference for the Joint Committee

·           Procuring a joint custodian for all the assets of the Pool

·           Developing the GLIL Infrastructure vehicle (including FCA regulation to facilitate it becoming the national LGPS vehicle for infrastructure investment)

·           Developing a joint private equity vehicle.

 

Recommended –

 

That the progress on pooling to date, and the autumn submission to the Ministry of Housing, Communities and Local Government, contained in Document “Y” be noted.

 

(Rodney Barton – 01274 43231)

 

Additional documents:

Decision:

Resolved –

 

That the progress on pooling to date, and the autumn submission to the Ministry of Housing, Communities and Local Government, contained in Document “Y” be noted.

 

ACTION:       Director, West Yorkshire Pension Fund

 

Minutes:

Members were aware that, in accordance with the guidance from Government, West Yorkshire Pension Fund (WYPF) together with Greater Manchester and Merseyside were working towards the creation of an investment pool, Northern Pool (NP).

 

The report of the Director, West Yorkshire Pension Fund, (Document “Y”)  set out the progress in establishing the Northern Pool, covering:-

 

·           Drafting the Northern Pool Operating Agreement, including the Terms of Reference for the Joint Committee

·           Procuring a joint custodian for all the assets of the Pool

·           Developing the GLIL Infrastructure vehicle (including FCA regulation to facilitate it becoming the national LGPS vehicle for infrastructure investment)

·           Developing a joint private equity vehicle.

 

Members were advised that the Governance and Audit Committee, at its meeting on 24 January 2019 had recommended to Bradford Metropolitan District Council that, in order to comply with Government Investment Pooling Guidelines it was necessary for The Administering Authority (AA) of the West Yorkshire Pension Fund to enter into an agreement with Tameside and Wirral Metropolitan Borough Councils as the AAs of the two other pension funds making up the Northern Pool.

 

The issue would be considered by the Council on 21 February 2019 and it was recommended that the Northern Pool Joint Governance CommitteeAgreement, be approved to ensure it was operational by 1 April 2019.

 

It was explained that the procurement process for a joint custodian for all the assets of the Pool should be completed by the end of the current financial year.

 

The GLIL Infrastructure vehicle, including FCA regulation to facilitate it becoming the national LGPS vehicle for infrastructure was completed.  The GLIL was fully operational and £1 billion had already been invested.

 

A joint private equity vehicle was established and making commitments.

 

It was explained that on 3 January 2019 the Ministry of Housing, Communities and Local Government (MHCLG) had begun an informal consultation on statutory guidance on pooling. That guidance differed considerably from the current guidance and the Northern Pool would be considering that carefully before responding to the limited consultation.  The implications of that guidance were questioned and it was explained that the basic principle of the Pool was to save money and value for money would disappear in the proposals under consultation.

 

Resolved –

 

That the progress on pooling to date, and the autumn submission to the Ministry of Housing, Communities and Local Government, contained in Document “Y” be noted.

 

ACTION:       Director, West Yorkshire Pension Fund