Issue - meetings
Revised Investment Strategy Statement and Investment Options Considerations
Meeting: 20/06/2019 - Pensions Committee (Item 8)
8 REVISED INVESTMENT STRATEGY PDF 385 KB
To receive a report that outlines the revised Investment Strategy
Additional documents:
Minutes:
The Chair informed the Committee that a revised Investment Strategy is fundamental to the work of the Council and that she was grateful for the work already undertaken on this issue by the Committee over recent years. She made it clear that it was important that going forward the current Membership must have a clear understanding of all relevant issues and consider for itself how this should impact the Fund’s investment strategy.
In addition, (i) as the report had not been published within the required 5 clear days of the meeting date and having sought advice from the officers, it was clear that it is not essential that the Strategy is reviewed at the meeting; (ii) the Committee needed to hear for itself the points made by Friends of the Earth regarding the financial risk of climate change and take those points into consideration before approving.
Accordingly, the Chair recommended to the Committee that a decision is deferred on the Investment Strategy until a future meeting and that in the intervening period Members of the Committee will have an adequate opportunity to contribute to the Strategy and to fully understand its implications prior to its approval.
RESOLVED to defer consideration of this report to a future meeting.
Meeting: 14/03/2018 - Pensions Committee (Item 6)
6 Revised Investment Strategy Statement and Investment Options Considerations PDF 211 KB
Additional documents:
Minutes:
The Committee received a report on the revised Investment Strategy presented by Bola Tobun, Investment and Treasury Manager. Revisions were made to the social and environmental impact and carbon emission sections of the Statement as outlined on page 41- 42 of the agenda and reports pack.
The report also outlined the work done in achieving further diversification of the Fund’s return seeking portfolio and protecting its buoyant equity asset value by considering:
· An allocation to MAC
· Equity gains protection
· Allocation to long-term illiquid asset classes (long lease, private debt and infrastructure).
The Committee decided to appoint CQS as its MAC manager and the portfolio to be funded when the CIV add the manager to its platform, LCIV is planning to launch this sub-fund in May 2018.
This is being funded from rebalancing of LGIM equity portfolio and reduction of the Bond portfolio with Insight and GSAM to 3% each.
There was a discussion on equity protection which the CIV platform did not offer. Members were in agreement that there should be equity protection for the Fund. [Councillor Ronald arrived at this point, 8.10pm].
There was a discussion on the protection of assets. The Committee were advised that they may wish to consider liability hedge assets, long-lease assets and renewable energy. Members asked for long-lease and other infrastructure options to be put on the Committee’s Forward Plan.
RESOLVED
· To approve the revised Investment Strategy Statement.
· To delegate to the Corporate Director of Resources the ability to implement a downside protection with regard to the equity risk of the Fund as deemed appropriate; subject to officers working with advisors to identify and implement a suitable strategy for the fund.
· To agree a target allocation of 6% to Multi-Asset Credit.
· To approve the recommended MAC strategy/manager (a sub-fund to be launched on the London CIV platform).
· To approve reduction of Fund assets allocation from 6% to 3% for each absolute return manager.
· To note the research for illiquid asset classes on page 21 of the agenda and reports pack; officers will present findings for discussion at a future meeting.
ACTION:
For long-lease and other infrastructure options to be put on the Committee’s Forward Plan.