Statement of compliance with the Myners principles
| Description of principle | Kent Pension Fund's position | Future actions |
|---|---|---|
| Effective decision making Administering authorities should ensure that: Decisions are taken by persons or organisations with the skills, knowledge, advice and resources necessary to make them effectively and monitor their implementation, and Those persons or organisations have sufficient expertise to be able to evaluate and challenge the advice they receive, and manage conflicts of interest. |
The Superannuation Fund Committee is responsible for the approval and review of the Kent Pension Fund. The day to day running of the Fund has been delegated to the Section 151 Officer, the Corporate Director of Finance, supported by other Fund officers. Appointments to the Committee reflect skills, experience and continuity. An ongoing programme of training is in place for members of the Committee. Fund officers hold relevant qualifications and maintain appropriate professional development (CPD). The Kent Pension Fund procures training from CIPFA and other relevant bodies. Members and officers also attend training courses run by investment managers and the Fund's actuary. The structure and composition of the Superannuation Fund Committee is agreed at the time of the elections to the County Council and other local authorities. Allowances paid to elected members are published. | Ongoing member and Fund officer training. |
| Clear objectives An overall investment objective(s) should be set out for the Fund that takes account of the scheme's liabilities, the potential impact on local tax payers, the strength of the covenant for non-local authority employers, and the attitude to risk of both the administering authority and scheme employers, and these should be clearly communicated to advisors and investment managers. |
The Funding Strategy Statement (FSS) and Investment Strategy Statement (ISS) set out the Kent Pension Fund's primary funding objectives and investment strategies. The Fund recognises the impact of employer contribution rates on council tax and the desirability of rates that are as stable as possible. The Fund manages employers' liabilities effectively taking account of the strength of their covenant. Specific investment objectives are in place for each mandate in the portfolio and these are regularly monitored by the Superannuation Fund Committee. These objectives take account of the risk and return of different asset classes. Investment advice to the Committee and Fund officers is commissioned from Hymans Robertson. | Continual monitoring, review, and communication of objectives. |
| Risk and liabilities In setting and reviewing their investment strategy, administering authorities should take account of the form and structure of liabilities. These include the implications for local tax payers, the strength of the covenant for participating employers, the risk of their default and longevity risk. |
The Funding Strategy Statement (FSS) is reviewed at each triennial actuarial valuation taking account of the recommendations of the Fund actuary in relation to the liabilities of the Fund. The Fund agrees employer contribution rates that take account of the ability of employers to pay and the strength of covenant of participating employers. The admission of new employers to the Fund is not granted unless appropriate guarantees are put in place. The Investment Strategy Statement (ISS) will be reviewed at least annually. It takes into account the Fund's attitude to investment risk. It also includes the Fund risk register which covers all the Fund's investment activities. Whilst it is accepted that investment underperformance due to certain market conditions can occur, the Committee measures the Fund's active managers against longer term benchmark outperformance targets. The Committee uses internal and external audit reports to assess the effectiveness of governance arrangements. | |
| Performance assessment Arrangements should be in place for the formal measurement of performance of the investments, investment managers and advisors. Administering authorities should also periodically make a formal assessment of their own effectiveness as a decision-making body and report on this to scheme members. |
The Committee reviews the performance of its investment managers at its regular meetings and all the fund managers are held to account either through attendance at meetings with the Committee and/or with the Fund's officers and advisors. Performance data is provided by a specific provider, independent of the fund managers. The Fund's contract with its actuary is market tested when appropriate. Committee member attendance at meetings and training undertaken is monitored. | |
| Responsible ownership Administering authorities should: Adopt, or ensure their investment managers adopt, the Institutional Shareholders' Committee Statement of principles on the responsibilities of shareholders and agents. Include a statement of their policy on responsible ownership in the statement of investment principles. Report periodically to scheme members on the discharge of such responsibilities. |
The Institutional Shareholders' Committee Statement of Principles has been superseded by the Financial Reporting Council's (FRC) UK Stewardship Code and it is now the standard for the investment management industry. The Fund's Strategy Statement of Investment describes its policy on responsible ownership and the expectation that its investment managers will adhere to the UK Stewardship Code. Quarterly reports received from Investment Managers and circulated to Committee members include details of voting records. The Fund's annual report also includes a summary of the manager's voting activity. | |
| Transparency and reporting Administering authorities should: Act in a transparent manner, communicating with stakeholders on issues relating to their management of investment, its governance and risks, including performance against stated objectives. Provide regular communication to scheme members in the form they consider most appropriate. |
Agenda papers for all Committee and Pension Board meetings are available on the Kent County Council website. The website includes:
Individual scheme members receive newsletter updates throughout the year in addition to annual benefit statements. |