Issue - meetings

The Board is asked to consider the Investment Strategy Statement Report from the 17 March 2021 Pensions Committee by the Director of Finance and Support Services.

58.1     The Board received the Investment Strategy Statement Report from the 17 March 2021 Pensions Committee by the Director of Finance and Support Services (copy appended to the signed minutes).

58.2     Rachel Wood introduced the report and confirmed that it had been previously seen by the Board.  Feedback on the document had been received as noted within the report, which had been reflected in the final version of the Statement.  The Statement also reflected the current investment approaches that had been agreed by the Pensions Committee concerning equity allocations.  It was confirmed that Listed Equity was 45% and Private Equity was 5%.  The Statement had been published and was available to the public.

58.3     The Board made comments including those that follow.

•      Sought clarity over the private equity allocations.  – Rachel Wood confirmed that Private Equity was currently at 3% with an aim to increase to 5% following liquidity considerations for income exposure.  It was confirmed that a long-term approach was taken for private equity, reflective of its illiquidity.

•      Queried if private equity investments were in a pool.  – Rachel Wood confirmed that private equity was invested via a fund manager as ACCESS did not have a solution at present.

•      Noted the section on responsible investment and that the fund was moving in the right direction

•      Welcomed the accessible wording of the Statement.

58.4     Resolved – That the Board approves the revised Investment Strategy Statement, reflecting amendments following the consultation with stakeholders.

Report by the Director of Finance and Support Services.

The Committee is asked to approve the revised Investment Strategy Statement, reflecting amendments following the consultation with stakeholders.

72.1     The Committee considered a report by the Director of Finance and Support Services (copy appended to the signed minutes).

72.2     Rachel Wood introduced the report and explained that the Investment Strategy Statement had been updated following an employer consultation.  Seventy seven responses had been received and their comments were summarised within the report.  Engagement with stakeholders was left open and would be considered as part of the ongoing fund review.

72.3     The Committee made comments including those that follow.

•      Sought clarity over the value for money returns for active and passive figures and if they were net of fees.  – Rachel Wood explained that the passive fund used the passive index return and could therefore be considered a proxy due to the low fees for passive funds, even though it would be gross of fees.  The active fund was using a net figure.  The Chairman added that if gross figures had been used there would have been a larger gap.

•      Noted that 57 responders were not satisfied with the strategy and asked if the remaining responders had been satisfied.  – Rachel Wood confirmed that the remainder had been satisfied.  Rachel Wood reported that 20,000 members and 200 employers had been contacted.  Officers looked to reach all possible members via electronic means for the consultation.

72.4     The Committee welcomed how the feedback form employers had been captured and thanked all the employers who had responded to the consultation.

72.5     Resolved – that the Committee approves the revised Investment Strategy Statement which reflects the amendments following the consultation with stakeholders.