Issue - meetings

The report before members was presented in line with the Local Government Pensions Scheme (LGPS) (Management and Investment of Funds) Regulations 2016 which requires an administrating authority to formulate an Investment Strategy Statement (ISS) which must be produced in accordance with guidance issued by the Secretary of State.

The Financial Reporting Council (FRC) Stewardship Code gives guidance and states that the ISS must include the Authority’s policy on the exercise of the rights attaching to investments.  In order to comply with the Code the ISS includes the statement “At the time of production of the ISS the Fund has not issued a separate Statement of Compliance with the Stewardship Code”

Members gave consideration to issuing a separate statement of compliance with the Stewardship code, and agreed they would do so.  In so deciding, Members indicated they would like to see another report setting out the full seven Myner’s Investment Principles.

Members considered the ISS and noted the changes within it: 

·       On page 53 of the Agenda pack a new paragraph 3 had been inserted

·       Table 1 on Page 53 had a new column inserted “Long-term Target Investment Strategy”

Members also gave consideration to the Environmental, social and governance (ESG) risks and agreed that further information would be most welcome to ensure fully informed decisions are made in this regard.

Pensions Committee:

1.     Agreed the proposed changes to the ISS

2.     Noted that no revisions were made in respect of reporting compliance against the Myner’s investment principles so that the document will remain the same as the version published in March 2017.

3.     It was agreed that a further report regarding the seven Myner’s Investment principles be brought to the next meeting.

4.     Agreed that a separate statement of compliance with the Stewardship Code would be produced.