Agenda and minutes

The Chair welcomed everyone to the meeting.

Apologies for absence were received from Cllr Tim Leaver (Vice Chair) and from Carolan Dobson (Independent Advisor).

Members are asked to declare any disclosable pecuniary, other pecuniary or

non-pecuniary interests relating to items on the agenda

There were no declarations of interest in respect of any items on the agenda.

Cllr Sabri Ozaydin stated that he was a Director of Housing Gateway Ltd, Council Company.

To agree the minutes of the previous meeting.

The minutes of the meeting held on 5 October 2022 were agreed with amendments to correct typographical errors; that Cllr Tim Leaver was specifically Cabinet Member for Finance and Procurement; that the sub-group be correctly named a working group; and to note that the carbon risk audit was carried out on the Fund’s equity portfolios.

Matters arising were noted, including progress on a performance report from LCIV to the Committee; confirmation that the Chair had met with the Local Pension Board Chair and that invitations to Committee meetings were also being sent to her; confirmation that Bola had written to the LCIV regarding the Baillie Gifford fund and would send a copy of the correspondence to Members; confirmation that the meeting had taken place with the LCIV on the renewables fund; and confirmation that the required procedural process was being followed in respect of the Independent Person specification.

To receive a verbal update from the Chair

Updates from the Chair were covered in the previous item.

Pension Policy and Investment Committee is recommended to:

a)    note the contents of this report and Aon’s report on Hedge Fund redemption and surplus cash, appended as confidential appendix 1;

b)    note, consider and approve the Fund rebalancing proposal as prepared in appendix 1 of this report;

c)    consider and comment on the meeting notes of the PPIC subgroup of 14^th October 2022 and LCIV Renewable Infrastructure Fund presentation to the PPIC subgroup (appended as appendix 3b) at their meeting of 9th November 2022 appended as confidential appendix 3c to this report; and

d)    decide on a way forward to commence the investment of 10% allocation to infrastructure funds, pursuing appropriate strategy in line with the Fund commitment of making positive contribution to the transition to a low carbon economy, through investment in renewable infrastructure and any other suitable asset classes.

AGREED in accordance with the principles of Section 100(A) of the Local Government Act 1972 to exclude the press and public from the meeting for the following items of business (item 5, 6, 7 and 8) on the grounds that they involve the likely disclosure of exempt information as defined in paragraph 3 of Part 1 of Schedule 12A to the Act (as amended by the Local Government (Access to Information) (Variation) Order 2006).

Following Part 2 discussion of the reports and recommendations received in the supplementary agenda pack, Members’ questions were responded to by the Aon representatives and the Finance Director and Members’ comments were noted.

AGREED

1.    To note the contents of the report and Aon’s report on Hedge Fund redemption and surplus cash, appended as confidential appendix 1.

2.    To approve the Fund rebalancing proposal as prepared in appendix 1 of the report.

3.    To note the meeting notes of the PPIC working group of 14 October 2022 and LCIV Renewable Infrastructure Fund presentation to the PPIC working group (appended as appendix 3b) at their meeting of 9 November 2022 (appended as appendix 3c).

4.    That Aon to prepare further information in respect of allocation and investment to infrastructure funds.

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

Following a part 2 discussion the report was NOTED.

In response to Members’ request, Bola would send a glossary of acronyms to all Committee Members.

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

NOTED the report.

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

Following a part 2 discussion, the report was NOTED.

Pension Policy and Investment Committee are recommended to note the contents of this report.

Following a brief adjournment, the meeting resumed in part 1.

Exposure to emerging markets was highlighted.

Insight Absolute Return Fund and the recommendation from Bola, supported by Aon, had been discussed earlier in the meeting under item 8.

NOTED the report.

AGREED the Insight Absolute Return re-alignment as recommended.

The Committee are recommended to note the content of this report

It was confirmed that 13 boroughs were investing in the LCIV Renewable Infrastructure Fund currently.

NOTED the report.

Pension Policy and Investment Committee are recommended to notethe contents of this report and the attached Appendix 1.

Bola would send a link to Committee Members to Trucost analysis.

NOTED the report and the attached Appendix 1.

To note the minutes of the last Local Pension Board meeting held on 15 September 2022.

Bola would provide data to Committee Members in respect of number of members leaving or opting out of the pension scheme or taking the 50/50 option.

NOTED the minutes of the Local Pension Board meeting held on 15 September 2022.

The Pension Policy and Investment Committee are recommended:

i)          to note the contents of this report.

ii)         to note the response from London CIV attached as Appendix 1, and LAPFF as Appendix 2; and

iii)        to note, consider and comment on Enfield Pension Fund response attached as Appendix 3.

The proposed metrics set out in para 21 of the report were highlighted.

The DLUHC’s consultation ended on 24 November 2022 and a response would be submitted to meet the deadline. Members were invited to comment on the proposed Enfield Pension Fund response.

Bola would submit a further report on climate-related financial disclosures to the next meeting of the committee.

AGREED

1.    To note the contents of the report.

2.    To note the response from London CIV attached as appendix 1, and Local Authority Pension Fund Forum as appendix 2.

3.    To note the proposed Enfield Pension Fund response in appendix 3 and that the final version of the response would be submitted in consultation with the Chair.

As Daniel Carpenter was leaving Aon, and this was his last meeting in attendance, the committee expressed their thanks to him for all his work over the last 17 years.