Issue - meetings
Updated Investment Strategy Statement, November 2017
Meeting: 29/11/2017 - Pensions Committee (Item 6)
6 Updated Investment Strategy Statement, November 2017 PDF 109 KB
Additional documents:
- Enc. 1 for Updated Investment Strategy Statement, November 2017, item 6 PDF 244 KB
- Investment Strategy Review Carbon Fossil Fuels Investment Reduction, item 6 PDF 63 KB
Minutes:
Bola Tobun, Investment and Treasury Manager presented a report which gave an outline of the Updated Investment Strategy Statement. Following the 2016 actuarial valuation; the Pensions Committee initiated an investment strategy review. As a first step, the Pensions Committee received a scoping presentation at its meeting on 31st July 2017. The Committee’s investment consultants, Mercer completed the strategy review which was presented to the Committee on 21st September 2017.
At the 21st September 2017 meeting, the Pensions Committee agreed that, in the interests of pursuing further diversification of the Fund’s return seeking portfolio, and protecting its current buoyant equity asset value, further work be undertaken to achieve:
· an allocation to Multi-Asset Credit (MAC);
· downside protection with regard to equity risk; and
· Allocating to long-term illiquid asset classes (long lease, private debt and infrastructure.
Members noted that the Equity Portfolio had been repositioned from UK Equity to Global Equity and this was reflected in their strategy statement. Members requested that the Investment Strategy Statement be kept updated and reflect all changes that are made to the LBTH Pensions Fund. The Investment Strategy Statement was viewed as good aide in helping to demonstrate transparency.
The Chair commented that a lot of work had been undertaken around sustainable investment / ESG in particular around Low Carbon and asked that a positive statement be included in point 9.3 (Sustainable Investment / ESG) about where the Fund is in relation to ESG and the reasons why such decisions had been made.
Members noted that further work was being undertaken on long lease, private debt and infrastructure and that they were to receive training in the above areas and also hold further discussion on those topics at a future Committee. The Committee noted the importance of securing the right Fund Managers for the above investments. Members noted that the London CIV may have their own Fund Managers and agreed that this should be reviewed at a future meeting.
RESOLVED
1. To note and approve the updated Investment Strategy Statement attached as Appendix 1 of this report;
2. That the decision to agree an allocation of 6% to Multi-Asset Credit (MAC) in line with the investment strategy outcome presented by the investment consultant, Mercer, at the Pension Committee meeting on the 31st July 2017 be deferred to the next meeting
3. That they receive a further paper on Multi-Asset Credit (MAC)
4. That training on Infrastructure is delivered at their next meeting; and
5. That a positive statement be included in point 9.3 (Sustainable Investment / ESG) about the where the Fund is in relation to ESG and the reasons why these decision was made and that Officer liaise with the Chair and Vice- Chair when drafting the summary.
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