Agenda and minutes

Pensions Committee - Wednesday 30 March 2022 6.30 pm, MOVED

Venue: Committee Room (B06), Lambeth Town Hall, Brixton, London SW2 1RW

Contact: Marianna Ritchie, Democratic Services,  020 7926 8640, Email: mritchie@lambeth.gov.uk

Note: Information on how to access the meeting is set out in the agenda. However, if you just want to watch the live broadcast you can copy and paste the following link into your browser: https://bit.ly/3KYXJQu The video will remain available to view for 180 days. 

Items
No. Item

1.

Declarations of Pecuniary Interests

    Under Standing Order 4.4, where any councillor has a Disclosable Pecuniary Interest (as defined in the Members’ Code of Conduct (para.4)) in any matter to be considered at a meeting of the Council, a committee, sub-committee or joint committee, they must withdraw from the meeting room during the whole of the consideration of that matter and must not participate in any vote on that matter unless a dispensation has been obtained from the Monitoring Officer.

    Minutes:

    There were no declarations of pecuniary interest.

2.

Minutes of the Previous Meeting pdf icon PDF 167 KB

    To approve the minutes of the meeting held 12 January 2022.

    Additional documents:

    Minutes:

    The minutes of the meeting held on 12 January 2022 were agreed as an accurate record of the meeting.

3.

Lambeth Pension Fund - Investment Performance Review - 31 December 2021 pdf icon PDF 277 KB

    Additional documents:

    Minutes:

    Rob Browning, Head of Treasury and Pensions, explained that although the Fund performed above benchmark in the three- and five-year periods there continued to be issues with the performance of the Baillie Gifford equity fund. Rob Browning also highlighted that the Lambeth Pension Fund was taking part in the London Collective Investment Vehicle’s (LCIV) new seed investor group to develop a UK housing fund, and was looking to develop the fund to address the Fund’s current underweight position to property. In response to questions from members, officers answered that:

     

    ·         The biggest effect on the Fund resulting from the Russian war on Ukraine would be inflation, but that the Fund’s high proportion of real assets exposure should mitigate that;

    ·         Officers recommended geo-economic scenario testing in the next valuation cycle;

    ·         Employees who felt the financial strain of inflation and rising energy prices would have the option to change their pension contributions by opting in to the 50/50 scheme. Any who did lower their contributions would be given frequent opportunities to reassess their abilities to contribute;

    ·         Officers, however, expected contributions to remain stable following the latest 2022 valuation cycle.

    ·         Continuing poor performance of Baillie Gifford was not of major concern; they had since made some changes to their investment processes, which Mercer and the LCIV were satisfied would result in better performance going forwards.

     

    The Committee requested that the LCIV picks up these issues with Baillie Gifford and requested that Baillie Gifford joined a future Pensions Committee meeting to look at these ongoing issues.

     

    RESOLVED

     

    1. That the report, together with the information in the accompanying performance report, be noted.

4.

Lambeth Pension Fund - General Update March 2022 pdf icon PDF 280 KB

5.

Lambeth Pension Fund - Investment Managers Summary - 31 December 2021

Minutes:

RESOLVED

 

Unanimously that members of the Press and Public be excluded from the remainder of the meeting under Section 100A(4) of the Local Government Act 1972 on the grounds that: (i) it involved the likely disclosure of exempt information as defined in Paragraph 3 (Information relating to the financial or business affairs of any particular person (including the authority holding that information)) of Part 1 of Schedule 12A of the Act: and (ii) that the public interest in maintaining the exemption outweighed the public interest in disclosing the information.

6.

Lambeth Pension Fund - ESG Considerations - March 2022

Minutes:

RESOLVED

 

Unanimously that members of the Press and Public be excluded from the remainder of the meeting under Section 100A(4) of the Local Government Act 1972 on the grounds that: (i) it involved the likely disclosure of exempt information as defined in Paragraph 3 (Information relating to the financial or business affairs of any particular person (including the authority holding that information)) of Part 1 of Schedule 12A of the Act: and (ii) that the public interest in maintaining the exemption outweighed the public interest in disclosing the information.

 

7.

Lambeth Pension Fund - Decarbonisation Planning

Minutes:

RESOLVED

 

Unanimously that members of the Press and Public be excluded from the remainder of the meeting under Section 100A(4) of the Local Government Act 1972 on the grounds that: (i) it involved the likely disclosure of exempt information as defined in Paragraph 3 (Information relating to the financial or business affairs of any particular person (including the authority holding that information)) of Part 1 of Schedule 12A of the Act: and (ii) that the public interest in maintaining the exemption outweighed the public interest in disclosing the information.