The Head of Finance and Risk introduced the report which requested that Members approve the treasury management policy statement, and the treasury management practices for Merseyside Pension Fund for the year 2022/23.

Members commented that the annual report for 2020/21 included in the report stated over a twelve-month period, Northern Trust calculated the cash performance to be -1.59% and queried whether this meant the treasury management activity had lost money.

The Head of Finance and Risk clarified that the negative return is due to “noise” in the cash account but that no money had been lost. The Director of Pensions agreed that this was not an entirely satisfactory explanation from the custodian and that he would provide a more detailed response to members when possible.

Resolved That –

(1) the treasury management policy statement and the treasury management practices for Merseyside Pension Fund for the financial year 2022/23 be approved.

(2) the Director of Pensions will provide further information to members on the negative cash performance stated in the annual report 2020/21.