Agenda and minutes

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

There were no declarations of interest.

To agree the minutes of the previous meeting held on 27 January 2022.

The minutes of the meeting held on 27 January 2022 were agreed as complete and accurate. 

There is no update from the Local Pension Board.

ACTION: Circulate the last Local Pension Board meeting minutes.

Members are recommended to:

a)    Note the content of this report;

b)    Note, review and comment on the current Responsible Investment Policy attached as Appendix 1; and

c)    Note, consider, and approved the Net Zero Engagement Framework prepared by Aon, attached to this report as Appendix 2.

Aon prepared the Net Zero Engagement Framework based on the workshop which was held in February.

Members suggested this item should be noted at the new committee in the new municipal year and to review the framework in September/October.

AGREED: To adopt the net zero engagement framework strategy.

Members are recommended to

a)    note the contents of this report and the Investment Strategy Review, Summary paper appended as Confidential Appendix 2;

b)    note the contents of the Investment Strategy Implementation paper, appended as Confidential Appendix 1; and

c)    consider and approve the recommendation of Aon of investing the Fund’s new 5% allocation to alternative fixed income into the LCIV Global Bond Fund as appended as Confidential Appendix 3 to this report.

Bola Tobun presented this item. Aon remain comfortable with a 5% allocation to the global bond fund.

Concerns were raised over alternative options and the portfolio being over 10% in equity. The report from Aon touches on other strategies and can provide a formal recommendation. Bola is working on a rebalancing report which can be brought to the next meeting.

Members noted that we should not be investing in any new fund that has assets in Russia.

An informal meeting will be held in May to consider what Aon will be proposing at the formal meeting.

ACTION: Aon to seek confirmation that PIMCO will not make future investments

The committee are recommended to note the contents of this report and the attached Appendix 1.

Max Meikle from Aon presented this item.

The committee noted this report and suggested the review subcommittee should include this on the agenda.

The committee are recommended to note the contents of this report and to note and comments on section 23 to 30 on the Impact of Russian Invasion on Investments Market.

Bola Tobun presented this item and advised by the end of February the fund was at £1.485billion. Our position in Russia showed there is around £850m exposed to Ukraine and Russia.

Members noted the report and the generally good performance and would like Aon to look into what we are doing with the spare cash.

The committee are recommended to note the contents of Aon’s report set as Appendix 1 to this report

Max Meikle from Aon, presented this item with key issues being the current conflict in Ukraine/Russia and its impact on geo politics and the potential recession in the next 8-24 months.

The next committee will receive a further update.

Members noted the report and suggested going forward to look at longer term, 10-15 years.

Pension Policy and Investments Committee are recommended to note the contents of Aon’s report set as Appendix 1 to this report.

Memebers noted the update from Aon and that the Bailey Gifford fund has slightly differed but it is not material.

Members are recommended to:

a)    note the contents of this report; and

b)    Note and consider the Annual Report for 2020/21 with all the statutory documents. (attached as Appendix A to this report);

c)    Note the Enfield Pension Fund ranking and returns as prepared and produced by PIRC (Pensions & Investment Research Consultants Ltd) UK Local Authority League table for 2020/21, set in section 31 to 34 and Appendix B of this report.

d)    Delegate the publication and distribution of the annual report to interested parties to the Executive Director of Resources, once the audit process is complete.

Bola Tobun presented this item.

The account is yet to be audited. The equity position is below the average at 7-8%. By the end of March the fund was at 107% and £85m in surplus.

Members agreed to approve the proposed report and accounts.

Members are recommended to:

a)    note the contents of this report and Appendix 1;

b)    note 2019 actuarial valuation attached to this report as Appendix 2,reissued by the Fund Actuary in July 2021; and

c)    note the 2022 Formal Actuarial Valuation Timetable and Scope, attached as Appendix 3.

Members noted the GAD report with interest. Our actuarial assumptions are not in prudent and have confidence in our actuaries activities.

A draft result will come to the committee in September to be finalised in November.

The committee are recommended to

a)    To note the submission of the statement at Appendix 1 to the CMA in line with requirements;

b)    Note and comments on the strategic objectives approved March 2021, attached as Appendix 2; and

c)    Note and comments on Aon’s Investment Consultant response in assessing their performance against the objectives set and approved March 2021 as set out in Appendix 3.

The committee received a restricted report from Aon which was noted and were happy with the responses.