Agenda for Pension Policy & Investment Committee on Thursday, 17th September, 2020, 9.30 am

Agenda and minutes

Venue: Virtual - Microsft Teams Meeting

Contact: Bola Tobun - Finance Manager (Pensions and Treasury) - 020 8132 1588 - Email: bola.tobun@enfield.gov.uk 

Items
No. Item

1.

Welcome and Introductions

Minutes:

Councillor Tim Leaver (Chair) welcomed everyone to the virtual Microsoft Teams meeting.

 

Apologies for lateness were received from Councillor Claire Stewart.

 

The Chair noted the large presentations to the meeting in addition to important business items. Consequently, the time allocations given to items was challenging. There was discussion around the functioning of the committee going forward.

 

AGREED a monthly investment review meeting, with a standard format on a Friday morning, to be arranged in addition to the scheduled committee meetings.

ACTION: Bola Tobun, Finance Manager, Pensions & Treasury

2.

DECLARATIONS OF INTERESTS

Members of the Council are invited to identify any disclosable pecuniary, other pecuniary or non-pecuniary interests relevant to the items on the agenda.

Minutes:

Councillor Terry Neville declared a non-pecuniary interest as his nephew was a senior employee at CBRE.

 

Carolan Dobson declared interests in an energy investment fund.

 

The Chair recommended completion of a record of interests form to cover standing declarations.

3.

MINUTES FROM THE LAST MEETING pdf icon PDF 114 KB

To receive and agree the minutes of the meeting held on the 23 July 2020.

Minutes:

AGREED the minutes of the meeting of 23 July 2020 were agreed.

 

There were no matters arising which were not covered by today’s meeting, with the exception of the AGM, which was proposed for the next meeting of the committee, 26 November 2020.

 

Councillor Claire Stewart arrived at the meeting at this point.

4.

ORDER OF THE AGENDA

Minutes:

AGREED that the presentation from London Collective Investment Vehicle would be received as the first presentation. The minutes follow the order of the meeting.

5.

Presentation from London Collective Investment Vehicle (Pool)

To receive a presentation from Rob Hall and Silvia Knott Martin. 

 

A ten minute break will follow this item. 

Additional documents:

Minutes:

RECEIVED London CIV presentation.

 

REPORTED

Rob Hall, Deputy Chief Investment Officer, introduced the presentation with an overview of investment in London CIV products and a review of funds’ performance.

 

NOTED

 

Committee’s questions and responses received in respect of the LCIV MAC fund, and in respect of responsible investment approaches.

 

In response to Councillor Neville’s query in respect of reporting on cost savings, this would be followed up with Bola Tobun to share with Members.

 

The Chair thanked London CIV for their informative presentation.

6.

Presentation from Adams Street (Private Equity)

To receive a presentation from Ana Maria Harrison and Sergey Sheshuryak from Adams Street. 

Minutes:

RECEIVED Adams Street presentation.

 

REPORTED

Ana Maria Harrison, Partner, Investor Relations, introduced the presentation with a review of the portfolio and performance, and expectations going forward.

 

NOTED

 

Enfield’s private equity portfolio was quite mature, and modelling going forward would be useful.

 

The Chair thanked Adams Street for their informative presentation.

7.

Presentation from MFS (Global Equity)

To receive a presentation from Victoria Higley and Elaine Ashton. 

Minutes:

RECEIVED MFS presentation.

 

REPORTED

Elaine Ashton, Managing Director, Relationship Management, introduced the presentation with an overview of performance results, and highlighting of their investment approach.

 

NOTED

 

Committee’s questions and responses received in respect of current trends and the long term future.

 

The Chair thanked MFS for their informative presentation.

 

The meeting adjourned for a 10 minute break before resuming to consider the remaining agenda items.

8.

Draft Responsible Investment Policy and Update on Moving Towards Low Carbon Investments and a Reduced Exposure to Fossil Fuels pdf icon PDF 279 KB

To receive a report from Bola Tobun (Finance Manager – Pensions and Treasury). 

Additional documents:

Minutes:

The Pensions & Treasury Finance Manager introduced the item and the report which set out the draft policy and provided an update on progress.

 

AGREED

 

The committee considered and noted

a) the content of the report; and

b) the content of the Draft Responsible Investment Policy.

 

The committee to monitor the implementation of this policy every six months.

9.

Investment Strategy Review Walk Through

To receive a walk through presentation on the Investment Strategy Review from Aon representatives. 

Minutes:

RECEIVED the presentation prepared by Aon.

 

REPORTED

Daniel Carpenter, Aon, introduced the presentation with an overview of the approach to the review, development of investment objectives, and timetable for implementation.

 

NOTED

 

The Chair thanked Aon for the useful presentation, and noted the potential need for additional meetings of the committee to take this work forward.

10.

QUARTERLY PERFORMANCE REPORT - 30 June 2020 pdf icon PDF 372 KB

To receive a report from Bola Tobun (Finance Manager Pensions and Treasury)

Additional documents:

Minutes:

The Committee received the Quarterly Performance Report from the Pensions and Treasury Finance Manager.

 

The Pensions and Treasury Finance Manager highlighted that for June quarter end most of the equity portfolios bounced back, matching or outperforming the respective benchmarks.

 

Members noted current volatility, and importance of a robust investment strategy.

 

NOTED the report.

11.

Key Developments, Economic and Market Outlook

To receive a presentation from Aon representatives. 

Minutes:

The committee received an update from Joe Peach, Aon, highlighting recent changes and developments.

 

Concerns around property market uncertainties were discussed. This would also feed into the investment strategy review.

12.

Enfield Pension Fund Cash Flow Forecast pdf icon PDF 187 KB

To receive a report from Bola Tobun (Finance Manager – Pensions and Treasury)

Additional documents:

Minutes:

The Committee received the Pension Fund Cashflow Forecast 2020/21 to 2022/23 Report from the Pensions and Treasury Finance Manager.

 

The Pensions and Treasury Finance Manager highlighted the cashflow forecast in Appendix 1.

 

Members noted the need to maintain liquidity and effective management of the Pension Fund.

 

NOTED the committee

a)    noted and approved the Revenue Budget for 2020/21 (Appendix 1); and

b)    noted the cashflow forecast from operational activities for 2021/22 and 2022/23 attached as Appendix 1 to the report.

13.

ANY OTHER BUSINESS

Minutes:

NOTED

 

1.    In response to concerns raised during the meeting, clarification would be provided on usage and retention of recordings of meetings.

ACTION:  Penelope Williams, Governance & Scrutiny

 

2.    Councillor Levy advised that an amendment to the committee membership would be submitted for Council approval to meet proportionality requirements, and he would no longer be a committee member.

 

3.    The committee wished to see the next three fund managers in October, possibly in an informal meeting as discussed during the introduction.

ACTION:  Bola Tobun, Finance Manager, Pensions & Treasury

14.

DATES OF FUTURE MEETINGS

To note the dates scheduled for future meetings as follows:

 

·         Thursday 26 November 2020

·         Thursday 25 February 2021 and

·         Thursday 29 April 2021

 

All meetings to begin at 9.30am

Minutes:

The next scheduled meeting of the Committee to be held Thursday 26 November 2020 (proposed AGM).