Agenda and minutes
Venue: Room C1, 1st Floor, Town Hall, Mulberry Place, 5 Clove Crescent, London, E14 2BG
Contact: David Knight, Principal Committee Services Officer Tel: 020 7364 4878; E-mail: david.knight@towerhamlets.gov.uk
Media
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DECLARATIONS OF DISCLOSABLE PECUNIARY INTERESTS PDF 117 KB Additional documents: Minutes: No declarations of disclosable pencuniary interests were received at the meeting. |
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UNRESTRICTED MINUTES PDF 152 KB To confirm as a correct record of the proceedings the unrestricted minutes of the meeting of the Pensions Board held on 17th June, 2019. Additional documents: Minutes: The minutes of the last meeting were agreed and approved as a correct record. |
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SUBMISSIONS FROM FUND MEMBERS To consider any written submissions from Fund Members/Stakeholders.
(Submissions must be received by the Clerk to the meeting no later than 5.00p.m. on the day before the meeting.) Additional documents: Minutes: No submissions were received at the meeting from Fund Members. |
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SUBMISSIONS / RESPONSES FROM PENSION COMMITTEE Additional documents: Minutes: Noted report had been submitted and was well received by the Committee. |
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REPORTS FOR CONSIDERATION Additional documents: Minutes: NOTES FROM PENSIONS BOARD 190919
Presentation: bfinance
Infrastructure
Qu: Why no standardised benching marking how long does it take to establish that bench marking?
Res: It is challenging to bring such a wide range or different types of items together as it is a very heterogeneous class, but more and more data is becoming available.
Qu: What is your knowledge of Infrastructure and what are your predictions of growth and which types are
Res: On a general position on infrastructure it’s 10% 20% and is 5% 10% of a Fund’s Portfolio, as to growth strong trajectory in Nth America (CAN) and Austrasia (AUS) and 5% 10% goes to 20%.
Qu: A lot of money going into infrastructure so prices going up by demand and direct investment directly by Funds putting them into direct competition with Fund Mgr.
Res: Over past decade has remained steady but need to look closely at risks be open to.
QU: What about the increasingly rapid change in the assets technology?
Res: We get asked a lot about the lives of these assets and it is importance to look at the strategy of those managing these physical assets and their plans for the renewal/updating of the kit e.g. making it more productive/efficient
Presentation: Quinbrook
Comment: 2018 the largest year for renewable energy coming into the market it’s a growth sector and the returns for investment is showing a positive trend.
The growth of this industry is the ecnomic growth to this area and benefits to the local community e.g. Jobs. Need to have though the figures in a standardised format of the benefits for this kind of investment so that Funds can identify the trends/benefits.
UK has a positive history on investing in renewable energy although has slowed recently and those investing in; building of and owning the kit are looking at the way ahead. Slide 6 NOTES
Qu: How quickly can monies be invested?
Res: RECORDING
Qu: Returns
Res 12% 13% Gross 9% 10% Net
Comments: Noted there is a strong appetite for a “green fund” within London Borough’s in the Collective Investment Vehicle for London Local Authorities (LLA). There is signfgicant growth and be 50% of all Funds investment in 20 yrs. to 25 yrs.
Pension Committee Noted report submitted well received.
Performance Review: Noted Pages 1&2 Pages 25 & 26 Slides & Page 41 onward Mgr. Noted Page 42 departure of Key Team Member. & noted the performance Mgt will be considered at Committee.
Qu: Page 18
Comment: Welcomed the Mercers Rpt.
Noted that ESG is becoming a very real issue across the board from investment to the Board Membership of the Fund Mgr. to the ESG in relation to the companies building are Environment Plus.
On Page 61 noted clarification been asked on the N/A to see how they have voted noted it is being pursued.
Comment As CIV takes on more fund Mgt need more clarification on who is responsible for what and whereas in the past gone direct to the Mgr. now ... view the full minutes text for item 5. |
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INVESTMENT AND FUND MANAGERS PERFORMANCE REVIEW FOR QUARTER END JUNE 2019 PDF 243 KB Additional documents:
Minutes: The Board received a report that considered the latest performance data for the Fund. The main points of the discussion are set out as follows:
The Board noted that:
· Over the quarter to 30 June 2019, the Fund generated a return of 2.9% and underperformed its benchmark by 0.4%; · The Fund’s global equity investments produced strong returns over the quarter and twelve month period to 30 June 2019; · Although the Baillie Gifford Global Alpha fund had outperformed its benchmark by 1.6% over the quarter. The performance of the Absolute Return Fixed Income managers continued to disappoint, in particular Insight; · The Baillie Gifford Diversified Growth Fund has been put on watch; · The employer’s contribution is a significant element of the Council’s budget and consequently any improvement in investment performance will reduce the contribution and increase the funds available for other corporate priorities; · As at 30 June 2019, the Fund was 5.6% overweight in equities and 3.1% underweight in Diversified Growth Fund; · There was no change in asset allocation during the quarter; · The returns from the PIRC Local Authority universe which comprises of 64 funds with a value of £193bn showed a strong equity market performance during the quarter driving the positive result of 3.8% for the average Local Authority fund.
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QUARTERLY LAPFF VOTING AND ENGAGEMENT UPDATE PDF 279 KB Additional documents:
Minutes:
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LGPS COST CAP UPDATE, MCCLOUD CASE AND ACTUARIAL VALUATION PDF 331 KB LGPS Cost CAP Update, McCloud Case and Actuarial Valuation Additional documents: Minutes:
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REVIEW OF RISK REGISTER PDF 253 KB Additional documents:
Minutes:
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DRAFT PENSION FUND ANNUAL REPORT AND ACCOUNTS PDF 249 KB Additional documents: Minutes:
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LOCAL PENSION BOARD UPDATED LBTH PENSIONS BOARD WORK PLAN FOR 2019/20 PDF 266 KB Additional documents:
Minutes:
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PENSIONS ADMINISTRATION QUARTERLY UPDATE- QUARTER END JUNE 2019 PDF 319 KB Additional documents: Minutes:
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PENSIONS COMMITTEE AGENDA FOR THE FORTHCOMING MEETING To follow Additional documents: Minutes: The Board received and noted the agenda for the Pension Committee meeting scheduled for 24th September, 2019. |
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MEMBER TRAINING Verbal Update Additional documents: Minutes: The Board considered the training and development needs for members. Accordingly the Board RESolved that:
· In addition to the regular presentations and discussions at Board meetings, members will be asked on an individual basis to identify gaps in their skills and knowledge so these can be addressed.
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ANY OTHER UNRESTRICTED BUSINESS WHICH THE CHAIR CONSIDERS TO BE URGENT To consider any other unrestricted business that the Chair considers to be urgent.
Additional documents: |