Agenda and minutes

Apologies for absence were submitted on behalf of Cllr Steve Booton (Birmingham City Council), Ian Smith and Martin Clift (Unite).

No notifications of substitute members were received for the meeting.

No declarations of interests were made.

[For approval]

Resolved:

That the minutes of the previous meeting held on 22 June 2016 be approved as a correct record and signed by the Chair.

[To consider any matters arising from the minutes of the previous meeting]

Referring to Minute 8 (Economic and market update), Geik Drever, Strategic Director of Pensions reported that the Investment Advisory Panel had been in discussions following the outcome of the EU Referendum on 23 June 2016. The risks and opportunities would be kept under review as the situation and path of exit develops.

[To pass the following resolution:

That in accordance with Section 100A(4) of the Local Government Act 1972 the press and public be excluded from the meeting for the following items of business as they involve the likely disclosure of exempt information on the grounds shown below]

Resolved:

That in accordance with Section 100A(4) of the Local Government Act 1972, the press and public be excluded from the meeting for the following items of business as they involve the likely disclosure of exempt information falling within the paragraph 3 of Schedule 12A of the Act.

[To review the conditions in the global economy and investment markets]

David Evans, Head of Portfolio, Passive Equities presented a report which summarised the key elements of the review of the global economy and investment markets produced by the Fund’s Investment Advisers Hymans, Robertson.

Resolved:

          That the global economic and market update paper prepared by the Fund’s adviser, Hymans Robertson be noted.

[To note the performance monitoring report]

David Evans, Head of Portfolio, Passive Equities summarised the key elements of the quarterly asset allocation and investment monitoring. 

During the ensuing discussion on cash deployment, Geik Drever, Strategic Director of Pensions reported on the asset classes where the Fund’s cash holdings had been deployed during the quarter.

The Strategic Director also responded to the Sub Committee’s questions on the performance of global equities external funds compared to the in-house portfolio confirming that the in-house active manager had a different strategy and it was still early days to assess performance.

Resolved:

          That the contents of the asset allocation and investment monitoring report for the quarter ended 30 June 2016 be noted.

[To note the performance monitoring report]

David Evans, Head of Portfolio, Passive Equities summarised the key elements of the quarterly asset allocation and investment monitoring report for the WMITA Fund.  The Fund had performed well during the quarter, increasing in its value and outperforming against its benchmarks. 

Resolved:

That the contents of the asset allocation and investment monitoring report for the period ended 31 March 2016 be noted.

[To receive an overview on the implementation of the index]

David Evans, Head of Portfolio, Passive Equities presented a report on an overview of the implementation of the Fund’s US S&P 500 Dividend Aristocrats index fund.

Responding to questions, the Head of Portfolio explained why this particular index fund had been selected as opposed to the other index strategies that could have been pursued.  Geik Drever, Strategic Director for Pensions added that the Dividend aristocrats index had a good track record and research was being undertaken into other available index strategies. 

Resolved:

That the implementation of the Fund’s in house US S&P 500 Dividend Aristocrats index fund carried out during the third quarter of 2016 be noted.

[To note the update on the planning application process]

Mike Hardwick, Head of Portfolio, Alternatives and Fixed Interests presented an update report on the planning application process for the 821 homes on the Fund’s agricultural land in Cleveland.

The Sub Committee discussed the proposed next stages planning process.

Resolved:

          That the report be noted.

[To receive an update on the Fund’s direct property investment strategy for 2016 and related investment activity]

The Sub Committee received an update on the Fund’s property investment strategy for 2016 and related investment activity from CBRE Global Investors.

Resolved:

1.     That the Fund’s direct property investment update from CBRE Global Investors be noted.

2.     That a more detailed presentation on the Fund’s retail portfolio be presented to the Committee later in the year.