1. East Sussex Pension Fund Annual Employers Forum 23rd November 2018
Presented by:
Ola Owolabi,
Head of Pensions.

2. What we will cover LGPS Investment pooling ACCESS Pool Governance
ACCESS Pool Progress

3. Approved 8 Pools

4. ACCESS (a collaboration of central, eastern and southern shires) with assets of £44.9bn – all of which are managed by third parties.
c3,250 employers
c1,000,000 members
Strong performing funds and potential for substantial benefits for a group of successful like-minded authorities collaborating and sharing their collective expertise.
75% of the assets are invested across 12 managers and 71 different managers used across the authorities.

5. Principles guiding decision making
Draw out objective evidence based decision, risk management, unnecessary complexity and value for money and evolution.
And implicit …
fiduciary responsibility
democratic accountability

6. ACCESS Governance Structure
No FCA regulated decisions in client-side functions
ACCESS Pool
Officers Officer Working Group (OWG), s151 Officers, Monitoring Officers
Joint Committee (JC)
ACCESS Support Unit (ASU) Secretariat, Contract Manager, Support
ACS
Pool aligned e.g. passive
Client side advisers
Custodian
Depositary
Fund accounting
Transfer & settlement
ACS OPERATOR
Transition managers
ACS Operator Advisers
Investment managers
Investment services
Reporting & compliance
Advisers, managers etc. for Pool aligned assets
Public
ACCESS Regulators
Primarily FCA, also TPR
Government
MHCLG, Treasury, Cabinet Office
Pensions directors / leads
s101 Committees
Local Pension Boards
Monitoring Officers
Scheme members
Participating employers
Trade unions
s151 Officers
Funds (Scheme Managers)
11 Administering Authorities
Funds’ investment advisers for ACCESS activities

7. Where does local decision-making end?
strategy
growth
Equities
Active/passive
Global/regional
Unlisted
Alternatives
Multi-asset
Hedge funds
Property
Income
Credit
Short term enhanced yield
Long term enhanced yield
protection
Bonds
Index-linked
nominal
Infrastructure
Global
local
LDI
Investment managers
Decided at
pool level
You will still make these decisions locally

8. ACCESS - Governance VfM discussion with S151s and legal advice
Draft - Governance manual completed
Legal review of governance manual (incl identifying any gaps in the ACCESS IAA)
Workshop to develop communications plan.
Next
Update governance manual in light of legal review
IAA review later this year TBC
ACCESS Communication plan

9. ACCESS Progress - ACS Appointment of ACCESS Operator – Link Fund
ACS, sub-funds, investment managers
Appointment of ACCESS Operator – Link Fund
FCA approved the Authorised Contractual Scheme (ACS) prospectus on 9th August
Includes approval for 1st sub-fund
Investment Management Agreements (IMAs)
ESG guidelines to be included in IMA
Tranche 1 lunched on 16th November 2018
Tranche 2 FCA application - 8th November 2018
Next
Transfer assets to first sub-fund - Nov–Dec 2018 (TBC)
Tranche 2 Prepare for “go-live” in January 2019

10. ESPF Assets Transitions
Costs/Savings
Mandate
Passive
Equities
Active
Global Equities
Multi-Asset Credit
Total ESPF ACCESS Mandates
£000's
Anticipated Savings
672.9
224.6 -
897.5
Anticipated Costs
(62.0)
Total Anticipated Costs/Savings
835.5
Current Investment (£m)
1,400.0
271.0
251.0
1,922.0

11. ACCESS – Future Sub-funds
ACS, sub-funds, investment managers
Phase 2 sub-funds
initial proposal for Global & UK equities developed
advice on fixed interest & DGFs commissioned (bfinance report – under consideration)
Next
Agree Phase 2 Global and UK Equity Sub-funds
Agree approach to ensure competitive tension

12. ACCESS Progress - ASU Permanent ASU
ACCESS Support Unit (ASU) / contract management
Permanent ASU
Recruitment underway for Director of ASU
Press release issued to help publicise
Contract Manager appointed
Next
Start recruitment process for technical roles?
Agree whether to extend interim ASU arrangements?

13. Summary Progress Issues ACS establishment & first sub-fund
Phase 2 equity sub-funds proposal process for competitive tension
ASU establishment: recruitment in train
Governance manual
Issues
Value for Money
Timescales for ASU establishment

14. ACCESS Pool – Additional info
ACCESS meeting papers/documents can be found using the following link:
KCC -
ACCESS: A Collaboration of Central, Eastern and Southern Shires -
DRAFT

15. Thank you
Any questions ?