Agenda and minutes
PDF 258 KBVenue: Meeting Room 225 - 160 Tooley Street, London SE1 2QH. View directions
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Apologies
To receive any apologies for absence. Minutes: Apologieswere receivedfrom Councillor Stephanie Cryanand Barry Berkengoff.
It was confirmed that, in the absence of Councillor Stephanie Cryan, Councillor Andy Simmons would chair the meeting. |
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Confirmation of voting members
Voting members of the committee to be confirmed at this point in the meeting. Minutes: Councillor Andy Simmons, Councillor Rachel Bentley and Caroline Watson were confirmed as voting members.
Everyone introduced themselves.
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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 9 March 2022. (5 minutes)
Supporting documents: Minutes: That the minutes of the meeting held on 3 March 2022 be agreed as a correct record |
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INTRODUCTION TO NEW PENSIONS ADVISORY PANEL MEMBERS
Minutes: Everyone in attendance at the meeting had already introduced themselves at the beginning of the meeting. |
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ASSET ALLOCATION
Supporting documents: Minutes: Jack Emery, CIPFA Trainee, Treasury & Pensions presented the report.
There were questions on the report and a discussion.
RESOLVED:
That the fund’s asset allocation at 30 June 2022 be noted. |
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CARBON FOOTPRINT UPDATE
Supporting documents: Minutes: Jack Emery, CIPFA Trainee, Treasury & Pensions presented the report.
There were questions on the report and a discussion.
RESOLVED:
That the fund’s updated carbon footprint as at 30 June 2022 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 lost around 6% of its value over the quarter. However, over the previous 10 years it had gone from underperforming its benchmark to being above its benchmark.
Colin Cartwright from Aon then addressed the sub-committee. He advised that Ao had not produced a funding update due to the fact that the fund was currently going through its triannual actuarial process.
There were questions and a discussion regarding the recent market turbulence.
RESOLVED:
That the quarterly investment updates be noted.
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ZERO CARBON INVESTMENT STRATEGY: IMPLEMENTATION PROGRESS UPDATE
- Low carbon equities - diversified growth - absolute return bonds
Supporting documents: Minutes: Caroline Watson, senior finance manager, addressed the panel. The item was presented in reports 10.1, 10.2 and 10.3.
There were questions and a discussion on the reports.
During the discussions it was agreed that there should be an independent review of the 2030 policy in the new year.
RESOLVED:
Item 10.1:
1. That it be noted that the Fund’s holdings in the Legal and General Investment Management (LGIM) Low Carbon Target Index Fund will be transitioned to the LGIM Low Carbon Transition Fund.
2. That the approach to this transition and the benefits to the fund towards achieving its net-zero carbon target be noted.
3. That the enhancements to be implemented by BlackRock in the MSCI World Low Carbon Target Reduced Fossil Fuel Select Fund, and how this will assist the Fund in its journey towards achieving its net-zero carbon target, be noted.
4. That there shall be an independent review of the 2030 policy in the new year.
Item 10.2
1. That the options set out in this report to replace the fund’s strategic allocation to the BlackRock Dynamic Diversified Growth Fund (DDG) be noted.
2. That the pensions advisory panel shall hold off making any concrete decisions with respect to the fund’s holdings in the BlackRock DDG fund until the outputs and analysis generated as part of the upcoming investment strategy review are discussed at the December pensions advisory panel meeting.
Item 10.3
1. That the options set out in the report to replace the Fund’s strategic allocation to the BlackRock Absolute Return Bond Fund (BARBF) be noted.
2. that the pensions advisory panel shall hold off making any concrete decisions with respect to the Fund’s holdings in the BARBF until the outputs and analysis generated as part of the upcoming investment strategy review are discussed at the December pensions advisory panel meeting. |
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INVESTMENT STRATEGY REVIEW BRIEFING - AON
Supporting documents: Minutes: Colin Cartwright from Aon presented the report.
There were no questions.
RESOLVED:
That the investment strategy review briefing be noted. |
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PENSIONS SERVICES - ADMINISTRATION FUNCTION UPDATE
Supporting documents: Minutes: In the absence of Barry Berkengoff, the pensions manager, Duncan Whitfield, the strategic director of finance and governance, gave an overview of the report.
There was a discussion regarding vacancies in the pensions team and data transfer issues in relation to new software that had been implemented.
Mike Ellsmore, the chair of the local pensions board that the pensions manager had reassured him that there was an action plan in place to address the six legal operational deadlines.
There was also a discussion regarding four recent complaints and how they had been managed.
RESOLVED:
1. That the update on the pensions administration function be noted.
2. That the complaint outcomes shall be included in future reports, as well as the complaints raised.
3. That a copy of the action plan shall be provided at the March 2023 pensions advisory panel meeting. |
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LOCAL PENSION BOARD UPDATE
Supporting documents: Minutes: Mike Ellsmore, the chair of the local pension board Mike Ellsmore updated the pensions advisory panel on the last meeting of the local pension board.
RESOLVED:
That the update from the local pension board (LPB) meeting of 6 July 2022 be noted.
At this juncture, there was a discussion regarding training.
It was suggested that a good way for members and other attendees to gain further knowledge was to attend fund manager events.
Caroline Watson advised that she would forward any events to members and attendees that she thought might be useful.
Report, which went to the 19 October 2022 meeting of the local pension board. |