Agenda item
London Collective Investment Vehicle (CIV) Update
- Meeting of Pensions Committee, Tuesday, 18th September, 2018 6.30 p.m. (Item 6.1)
- View the background to item 6.1
Minutes:
Bola Tobun, Investment and Treasury Manager, presented a report which provided an update on the latest developments in respect to the London CIV The LCIV has adopted a new governance framework and has disbanded the Pensions Joint Committee. A ‘Disbanding Agreement’ will be signed by all Local Authorities.
The LCIV employee pensions agreements are provided through the City of London Pension Fund and LCIV and City of London have been working together to formalise these arrangement. The LCIV has a Recharge Agreement and City of London required Guarantee Agreement for admitting LCIV into their Local Government Pensions Scheme. Members were advised that Legal Services and Finance will be reviewing the above agreements to ensure that terms and conditions are favourable to the LBTH Pensions Fund. The Committee noted that the City of London was expecting the LCIV to provide a Bond if the ‘Guarantee Agreement’ does not become effective. There were concerns about the former being unlimited.
Members noted the membership of the LCIV Shareholder Committee had been agreed and commented that the LBTH contribution to the LCIV was above 20% and stressed that the Local Authority should either have a Councillor or Officer on the Body. The LCIV is currently considering whether their Shareholder Committee membership should include a Trade Union Representative. The Committee was advised that the Pensions Board had raised various concerns over the governance arrangement at the LCIV in particular the lack of Independence between some committees.
The Committee held a brief discussion about disinvestment in fossil fuels and queried whether the LCIV could be requested to undertake the above and if they could remove funds if request was unmet. Officers reminded Members that LCIV was a ‘Pooled Fund’ and that they were legally obliged to be part of a Pool. The LCIV can be requested to look at ‘sustainable Equities’; these products would need to be in demand and also available on the Market. At present there is not a wide choice on ‘low carbon products’. Members requested that Officers approach the LCIV about ‘low carbon investments’ and provide feedback at the next Committee. Members were reminded that LCIV chose Fund Managers for each Asset Class and other Funds may desire alternative Products.
RESOLVED
1. To note the content of this report;
2. To approve the signing of the Notice of Dissolution of the Pensions CIV Joint Committee (PCSJC), issued by LCIV;
3. To delegate to the Corporate Director, Resources and the Monitoring Officer to review and agree suitable terms of conditions for Tower Hamlets Pension Fund and the Council in regards to the LCIV Pension Cost Recharge Agreement and LCIV Pension Guarantee Agreement for the City of London;
4. To approve the agreements to be sign when recommendation c above has been achieved in consultation with the Chair and Vice Chair of the Committee;
5. That Officers make enquiries about the Council having a representative on the LCIV Shareholder Committee; and
6. That Officers approach LCIV about ‘Low Carbon Products and provide feedback at the next Committee.
Supporting documents: