Agenda and minutes
PDF 161 KBVenue: Online/Virtual
Contact: Andrew Weir Email: andrew.weir@southwark.gov.uk
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Apologies
To receive any apologies for absence. Minutes: Apologies, due to technical issues, were received from Councillor Eliza Mann. |
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Confirmation of voting members
Voting members of the committee to be confirmed at this point in the meeting. Minutes: Councillor Rebecca Lury, Caroline Watson and James Gilliland were confirmed as voting members at the beginning of the meeting.
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NOTIFICATION OF ANY ITEMS OF BUSINESS WHICH THE CHAIR DEEMS URGENT
Minutes: There were none. |
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DISCLOSURE OF INTERESTS AND DISPENSATIONS
Members of the committee to declare any interests and dispensation in respect of any item of business to be considered at this meeting. Minutes: There were none. |
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Minutes
To agree as correct records, the open minutes of the meetings held on 3 March 2021. Supporting documents: Minutes: RESOLVED:
That the minutes of the meeting held on 3 March 2020 be agreed as a correct record.
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Introductions
Everyone present to introduce themselves. Minutes: Everyone present introduced themselves. |
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Asset Allocation
Supporting documents: Minutes: Caroline Watson, the Senior Finance Manager (Treasury and Pensions) presented the report on the asset allocation of the fund.
It was noted that £160 million had been transferred to the Black Rock Low Carbon Fund and that £100 million currently invested with Legal and general would be sold and transferred to the Black Rock Liquidity Fund.
It was also noted that the fund had increased in value by £30 million since the previous quarter.
RESOLVED:
That the fund’s asset allocation at 31 March 2021 be noted.
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Carbon Footprint Update
Supporting documents: Minutes: Caroline Watson, the Senior Finance Manager (Treasury and Pensions) presented the report on the carbon footprint update.
It was noted that the fund’s carbon exposure had been reduced by 34% since September 2017. It was also noted that Newton had now fully divested fossil fuels from its mandate.
There was a discussion regarding the increase in the proportion of the value of the fund invested in emerging markets equities. It was noted that this was as a result of market movements.
It was noted that the fund would see fluctuations like this until 2030 and that the fund should not set hard targets as many global factors were out of the fund’s control.
RESOLVED:
That the fund’s updated carbon footprint as at 31 March 2021 be noted.
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Quarterly Investment Update
· david cullinan
· AON
Supporting documents: Minutes: David Cullinan updated the panel. He advised that the fund had performed well in the March quarter. It was noted that the fund was in the top quartile of funds..
Colin Cartwright and Jonathan Taylor from Aon addressed the panel. They provided an overview of the range of products that the fund was invested in and how they rated these.
Caroline Watson advised that Aon were appointed as the investment advisors to the fund from 1 April 2021.
Duncan Whitfield thanked Mercer for all their help over the last six years.
It was noted that Newton were behind on their target but that the target was an ambitious target.
RESOLVED:
That the quarterly investment updates be noted.
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Environment, Social and Governance (ESG) Priority Allocation
Supporting documents: Minutes: Colin Cartwright from Aon presented the report. He advised that Aon had researched some funds that were familiar to both Aon and Southwark officers.
There was a discussion regarding the suggestions in the report. It was noted that the fund was targeting being carbon neutral by 2030 and that the fund would go through different phases before 2030.
There was a discussion regarding the funds objectives in relation to social and governance issues when it comes to making investments. It was noted that the fund had to be careful about excluding a wide range of investments as this would increase the risk to the fund.
It was noted that officers and Aon would hold a meeting with selected fund managers on 28 July 2021.
RESOLVED:
That the report on Environment, Social and Governance (ESG) Priority Allocation be noted.
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Pensions Services Update
Supporting documents: Minutes: The pensions manager was not present and the panel noted the report.
RESOLVED:
That the update on the pensions administration function be noted.
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Local Pension Board Update
Supporting documents: Minutes: Duncan Whitfield, the Strategic Director of Finance and Governance advised that the local pension board were currently looking at a process in relation to declarations of interest. In addition, this would also be looked into, in relation to the pensions advisory panel.
There were no questions.
RESOLVED:
That the update from the local pension board (LPB) meeting of 7 April 2021 be noted.
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Quarterly Actuarial Funding Update
Supporting documents: Minutes: Caroline Watson, the Senior Finance Manager (Treasury and Pensions) presented the report on the update.
It was noted that the funding level at 31 March 2021 was 111%.
RESOLVED:
That the updated funding position at 31 March 2021 be noted.
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Any Other Open Business
Minutes: It was noted that the next meeting would take place on 29 September 2021. |