Agenda and minutes

The Chairman welcomed everyone to the meeting.

There were no apologies given.

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

Councillor Taylor declared a non-pecuniary interest as he was appointed to the LCIV Shareholder Committee.

The Chair nominated Councillor Sabri Ozaydin as Vice-Chair which was seconded by Councillor Gina Needs.

To agree the minutes of the previous meeting held on 29 March 2023.

The minutes of the meeting held on 29 March 2023 were agreed.

To receive an update from the Chair.

The Chair attended a sustainable investment conference where a presentation from Morning Star displayed a template for information sharing. The Chair has spoken to Officers to consider consolidating the committees various sources of information to create an at-a-glance template for each of our investments.

The Chair also attended the Local Authority Pension Fund Forum Conference.

The Government has issued a consultation document on Pulin which has a deadline of October 5^th.
ACTION: Ravi to send link to Committee and members to email him comments by end of August.

To agree investments from the Pension Fund (“Fund”) into infrastructure managers and funds following the infrastructure manager selection event held in April 2023

Ravi Lakhani introduced the item highlighting the key points from the report.
As of 31 March 2023 the fund has a 16% strategic allocation to infrastructure assets.

AGREED to invest £75 million into the London CIV Renewable Infrastructure Fund.
AGREED to invest £50 million into the Copenhagen Infrastructure Partners (CIP V) fund.

ACTIONS:

Ravi to bring scheme of delegation to the next meeting.

Officers to seek Governance advice on a working group or sub committee to hold a further infrastructure manager selection.

1.         To approve the Pension Fund Business plan and budget for the 2023-24 financial year.

2.         The business plan and budget set out the direction of travel, objectives and targets to be achieved in the management of the Fund, and for the Council to be able to perform its role as the administering authority of the Pension Fund in a structured manner.

Ravi Lakhani presented this item highlighted the main points from the plan including the review of the contract with Aon.

The budget excludes investment returns, it has been increased with relevant allowances such as the 4% pay award and pension increase.

Members had questions on the admin costs listed in the report, to which officers explained that the cost of running the service includes the pension admin team, finance team admin staff , the oversight and governance cost associated with the funds custodians and audit costs.

ACTION Ravi to arrange training session for Members

AGREED the Pension Fund Business Plan and Budget for 2023-24.

The committee are asked to note the contents of the funding update report provided by Aon. (Attached as an appendix)

Aon introduced this item explaining that employers have been paying the new contribution rates from April this year.

The fund has been in a slightly improved position over the last 12 months. Investment returns have not been as good.

NOTED the report.

The Committee are asked to note the contents of the report.

Aon introduced this item highlighting the key points from the report. The strategy’s is revisited every 3 years. Aon’s approach to settling investment strategy is to discover the beliefs, develop a clearly defined return objective, deliver a portfolio focused on the objective, then review.

Aon will propose a dedicated session in quarter 3 of 2023 to look at delivering a portfolio based on the objectives set.

ACTION Officers to arrange a training day with Members of PPIC and Aon.   





 

1.    Agree investments of £70 million into Bonds consisting of

a.    £35 million into Blackrock Passive Gilts fund

b.    £35 million into AIL Diversified Liquid Credit fund(These investments to be funded from the surplus cash balance of £114.7m)

2.    The remaining balance of £44.7million, following the investments in (I), to remain in cash.

Ravi Lakhani presented the item explaining that there is currently a large cash balance which is residing in money market funds which can be withdrawn without any penalties.

It is recommended is to invest £35m into Blackrock Passive Gilts fud, £35m into all diversified liquid credit fund, this will leave the £44.7m balance remaining in cash. This allows for a quicker return without tying money up.

Members raised concern regarding potential conflicts of interest with advice coming from the same company that owns the fund. It was explained that Aon have a conflict of interest policy.

Action Aon to share the conflict of interest policy with PPIC

Agreed to invest £35 million into Blackrock Passive Gilts fund
Agreed for members to receive a note on due diligence done against AIL Diversified Liquid Credit fund. Subject to their being no objections the investment can be made

The committee are asked to note the contents of the report and consider how the implications of climate change may impact any future changes to investment strategy

Aon presented this item explaining the 5 potential climate change scenarios and its potential impact on assets and liabilities within the fund.

A review of the funds investment strategy will take place in the second half of 2023. The implications that arise from this should be considered in the Funds Investment Strategy.

Noted the report and part 2 appendices.

1.   Members are asked to note the content of the report.

2.   Agree to investigate the performance of the M&G inflation opportunities fund and receive assurances over future performance.

Ravi Lakhani presented this item. The value of the fund as of 31 March 2023 was £1.4m which was a £26.5m increase in the quarter.

Agreed to investigate the performance of the M&G inflation opportunities fund and receive assurances over future performance.

To receive a verbal update.

Ravi Lakhani advised there were no concerns from the Local Pension Board.

Noted the Pension Board Budget and Business Plan.