Agenda and minutes

Received from Alan Begg, Valerie Easmon-George and Councillor Dave Poyser, all members of the Pensions Board.

None.

If you have a Disclosable Pecuniary Interest* in an item of business:

·         if it is not yet on the council’s register, you must declare both the existence and details of it at the start of the meeting or when it becomes apparent;

·         you may choose to declare a Disclosable Pecuniary Interest that is already in the register in the interests of openness and transparency. 

In both the above cases, you must leave the room without participating in discussion of the item.

If you have a personal interest in an item of business and you intend to speak or vote on the item you must declare both the existence and details of it at the start of the meeting or when it becomes apparent but you may participate in the discussion and vote on the item.

*(a) Employment, etc - Any employment, office, trade, profession or vocation carried on for profit or gain.

(b)    Sponsorship - Any payment or other financial benefit in respect of your expenses in carrying out duties as a member, or of your election; including from a trade union.

(c)   Contracts - Any current contract for goods, services or works, between you or your partner (or a body in which one of you has a beneficial interest) and the council.

(d) Land - Any beneficial interest in land which is within the council’s area.

(e) Licences- Any licence to occupy land in the council’s area for a month or  longer.

(f)  Corporate tenancies - Any tenancy between the council and a body in which you or your partner have a beneficial interest.

(g) Securities - Any beneficial interest in securities of a body which has a place of business or land in the council’s area, if the total nominal value of the securities exceeds £25,000 or one hundredth of the total issued share capital of that body or of any one class of its issued share capital. 

This applies to all members present at the meeting.

Councillor Convery declared an interest in items on the agenda as a deferred member of the Scheme.

RESOLVED:

That the minutes of the meeting held on 6 March 2023 be confirmed as an accurate record of proceedings and the Chair be authorised to sign them.

Matters arising

In response to various performance matters raised at the last meeting, Karen Shackleton from MJ Hudson reported that:

the performance from Pantheon, the Fund’s Infrastructure manager, at almost -7% for the last quarter, whereas yearly performance was indicated at 27%, Pantheon had confirmed that they do not consider short-term figures and the variance was probably attributable to methodology;

on the matter of Islington owning over 50% of the LCIV Global Equity Fund (Newton) sub-fund and the implications of other investors leaving the Fund, LCIV had expressed confidence that no other investors would leave the Fund but, when pressed, undertook to notify Islington if the Fund went from three to two sub-funds.

RESOLVED:

(a) To note the membership of the Pensions Sub-Committee, appointed by the Audit Committee on 23 May 2023, its terms of reference and dates of meetings for the municipal year 2023/24, as set out at Appendix A of the report of the Interim Director of Law and Governance and Monitoring Officer.

(b) To note that the terms of reference of the Sub-Committee are to be reviewed at the Council meeting on 13 July 2023.

The meeting noted that Islington owned approximately 0.89% of chip manufacture through its holdings in four companies, a significant amount of exposure. They also noted that, although Hearthstone’s performance had improved, its progress on conveyancing was slow.  The position on both managers would be monitored closely.

RESOLVED:

(a) That the performance of the Fund from 1 January to 31 March 2023, as per the BNY Mellon interactive performance report and detailed in the report of the Corporate Director of Resources, be noted.

(b) That the presentation by MJ Hudson on fund managers’ quarterly performance, attached as Appendix 1 to the report, be noted.

(c) To note for information the Mercer “LGPS Current Issues May 2023” at Appendix 2 to the report.

In response to questions, Tony English and Alex Goddard, Mercer representatives, undertook to check:

i) with LGIM, if it was possible to distinguish between their oil and gas revenues

ii) with the LCIV Sustainable mandate (RBC), why the implied temperature rise seemed high

RESOLVED:

(a) To note the carbon footprint of the Fund’s public equities and credit, as detailed in the report of the Corporate Director of Resources.

(b) To note the fund’s progress in reducing its exposure to carbon intensive companies since 2016 and absolute emissions as set out in Exempt Appendix 1.

(c) To note that officers will continue to engage with the Fund’s portfolio managers to improve ESG ratings and achieve the targets set in 2025 and long-term net zero target for the whole fund.

(d) That progress on decarbonisation and the current metrics as detailed in the exempt appendix, be noted.

(e) That officers report to the next meeting on options for sustainable infrastructure. -amended at Pensions Committee on 26 September 2023.

RESOLVED:

(a) To note the presentation from Mercer attached as Exempt Appendix 1 to the report of the Corporate Director of Resources

(b) To note the strategy review and the risk and return analysis.

(c) To agree the strategic allocation, congruent with risk and return that was affordable and sustainable.

(d) To agree portfolio strawman 3- additional allocation to alternates and credit, as detailed in the exempt appendix.

(e) That an implementation strategy for the final agreed asset allocation be approved, as detailed in the exempt appendix.

(f) That the presentation from Mercer, attached as Exempt Appendix 2 to the report, be noted and the executive summary be approved.

RESOLVED:

To note the progress and activities presented at the May business update session (exempt appendix1) and minutes of the shareholders’ committee meeting held on 30th March 2023 (exempt appendix 2), attached to the report of the Corporate Director of Resources.

RESOLVED:

That Appendix A attached to the report of the Corporate Director of Resources, comprising the forward plan of business for the Sub-Committee, be noted

Noted.

Noted.

Noted.