Job Alert: Staffordshire Pension Fund – Independent Advisor

Staffordshire Pension Fund is looking for an Independent Advisor. 

Job description:

1. Staffordshire County Council is the administering authority for the Staffordshire Pension Fund (‘the Fund’). The Fund has a total membership of 119,000, consisting of around 34,000 active members, 42,000 retired pensioners and dependants, and 43,000 deferred members. As of 31 December 2023, the assets of the Fund were in excess of £7.1bn.

2. The assets of the Fund are currently managed by external investment managers and the LGPS Central asset pool, apart from cash, which is managed in-house. The following Strategic Asset Allocation (SAA) was agreed in March 2022, after a review by the Fund’s appointed Investment Consultant, and the Fund is now working through transitioning towards this new SAA.

3. Under the governance arrangements of the Fund, responsibility for the overall strategy and objectives of the Fund are delegated to the County Council’s Pensions Committee, which consists of nine elected members. The more detailed investment decisions to ensure the delivery of the investment strategy and achievement of the investment aims are delegated to a sub-set of five elected members of the Pensions Committee, known as the Pensions Panel.

4. The Pensions Panel meets quarterly (March, June, September, and December) and some of its main responsibilities are to:

• • Recommend strategic asset allocation changes to the Pensions Committee.
  • Ensure the investments of the Fund are suitable for the needs of the Fund and adequately diversified.
  • Set realistic investment benchmarks.
  • Monitor performance of investment managers against the investment benchmarks and targets set.
  • Co-ordinate management of the various investment managers to reflect the overall objectives of the Fund.
  • Lead on all aspects of Responsible Investment and Engagement.

5. The Pensions Panel currently receives investment advice from Hymans Robertson as its main investment consultant and one independent investment adviser. The Pensions Panel are seeking a second independent investment adviser.

Service requirements:

6. The contract will be for an initial period of three (3) years commencing on 1 April 2024, with an optional extension period of up to 3 further years.

7. The appointment will take the form of a contractual agreement between the appointed provider and Staffordshire County Council, to supply the services outlined below for the Staffordshire Pension Fund, in accordance with the terms agreed in the contract.

8. The main duties of the independent investment adviser are as follows:

• • To attend quarterly in-person meetings of the Pensions Panel;
  • To attend ad-hoc investment strategy, implementation and manager monitoring meetings with officers and the appointed investment consultant;
  • To provide ad-hoc advice and attend any other meetings as may be required from time to time.

9. In accordance with the Financial Conduct Authority regulations the range of services/advice to be provided does not include advice on individual securities or contractually based investments and consequently the activity does not fall to be regulated by the Financial Conduct Authority or its successor bodies. The areas which are to be advised on may include the following:

• • Investment strategy;
  • Strategic asset allocation;
  • Investment strategy implementation;
  • Development of investment policy and practices;
  • Corporate governance, including responsible investment and engagement;
  • Investment manager performance monitoring;
  • Constructive challenge to the advice from Hymans Robertson and the Fund’s other independent investment adviser; and
  • Any other ad-hoc advice.

10. The advice to be provided will be in written or oral form, as applicable but as a minimum, the Fund would expect:

• • a brief economic summary including the impact on the Fund’s strategic asset allocation and a recommendation on any resultant tactical decisions that may be considered, at each quarterly meeting of the Pensions Panel;
  • if requested, a formal written commentary on the performance of individual investment managers and/or the total Fund portfolio at each quarterly meeting; and
  • a brief annual assessment of the Fund.

11. Applicants for the role will possess:

• • Significant experience in advising lay trustees or elected members in relation to the investment of pension scheme assets;
  • In-depth knowledge and insight of the investment management industry and the factors which influence investment performance;
  • A significant ability to communicate complex issues to a “lay” audience; and
  • Some experience of working with the Local Government Pension Scheme.

12. Subject to delivering the minimum criteria below (para 13) the adviser will be paid a base fee of £24,000 per annum (exclusive of VAT) plus expenses up to a maximum of £1,500 per annum. Additional days over and above the norm will be paid at an agreed rate (para 14). Non-attendance will reduce the fixed fee pro-rata. Fees will be reviewed annually in line with the Consumer Prices Index, with a cap of 5%.

13. As a minimum, the base fee is expected to cover:

• • Four quarterly Pensions Panel meetings, to include in-person attendance and all preparation;
  • Routine and ad-hoc emails and enquiries between meetings;
  • Additional investment strategy meetings per year (up to 16 hours in person or virtually).

14. Any meeting in addition to this to be paid at £4,000 per day (assumed to be 8 hours), pro-rata for part days.

Applications:

15. Interested advisers should submit a completed questionnaire via the County Council e-Tendering Portal here. The closing date for receipt of applications is 11 March 2024 and interviews with members and officers will take place during March/April 2024, with a view to the appointment commencing shortly thereafter.

For further information or an informal chat about the role, please contact Melanie Stokes 07976 423616 or email melanie.stokes@staffordshire.gov.uk