Issue - meetings
LGPS Update - LCIV
Meeting: 29/11/2018 - Pensions Committee (Item 5)
Presentation - LCIV Governance Update by LCIV
Minutes:
The Committee received a Governance Update from Kevin Cullen regarding the London CIV Investment Strategy that covered a number of issues including the Pooling Landscape; Governance and Oversight; Divestment from Fossil Fuels; Fund range; Responsible investment; and the Tower Hamlets Portfolio.
The questions and comments from Members on the presentation may be summarised as follows
The Committee noted:
- That London as part of the CIV update over 45% of London’s assets are now pooled; Four new sub-funds launched in 2018; 14 active sub-funds;
- That the CIV are offering training with StepStone on infrastructure to meet the needs of institutional investors at any stage of their investment program;
- That the CIV Board has collective responsibility and it comprises three executive and seven independent non-executive directors plus one independent chair;
- That the CIV Board must act in interest of all shareholders;
- External independent oversight is provided by the FCA (Approved persons, permissions for business, approval of prospectus); Independent oversight of assets to protect investors’ interests is provided by the Depositary and Auditing of LCIV (company) and ACS (pooling vehicle) by external auditors;
- Government oversight on the progress against pooling criteria comes from the Ministry of Housing, Communities and Local Government;
- With regard to the commitment to responsible investment (i) the LCIV has established a responsible investment policy; (ii) the LCIV has become a signatory to the UN Principles for Responsible Investment (iii) the LCIV is a signatory of the UK Stewardship Code; and (iv) LCIV Managers are required to have Responsible Investment policies
- The key statistics relating to the LCIV Global Alpha Growth Fund portfolio, and the LCIV Global Alpha Growth Fund’s performance since inception on 11/04/2016;
- That the LCIV Diversified Growth Fund’s objective is to provide a minimum return of 3.5% over cash, with low volatility. The fund invests in a broad array of asset classes and their respective weightings will be determined according to the team’s conviction in each of them over the medium term. Derivatives will be used to help dampen the volatility of the fund and hedge out some of the unwanted exposures in the fund; and
- The portfolio exposures in LCIV Diversified Growth Fund by percentage and the exposure at the end of both Q2 2018 and Q3 2018.
Kevin Cullen was thanked for his presentation.
The Chair Moved and it was:-
RESOLVED
To note the Presentation
Meeting: 30/06/2016 - Pensions Committee (Item 16)
LGPS Update - LCIV
Additional documents:
- Restricted enclosure 4 , View reasons restricted (16/2)
- Restricted enclosure 5 , View reasons restricted (16/3)
Minutes:
This report was discussed in closed session and it was
RESOLVED
1. That the contents of the report be noted.