Agenda and minutes

There were no declarations of interest on this occasion.

RESOLVED – That the minutes of the Meeting of the Pensions Panel held on 14 September 2020 be confirmed and signed by the Chairman.

Report of the Director of Corporate Services

The Director of Corporate Services submitted a summary of the performance of the Staffordshire Pension Fund, together with a portfolio of the Fund’s investments, as at 30 September 2020.

The Panel were informed that the Fund had a market value of £5.6 billion as at 30 September 2020.  Over the quarter the Fund returned 2.4%, which was higher than the Fund’s Strategic Asset Allocation benchmark return of 1.5%. The best performing asset classes relative to their benchmark, were Private Equity and Private Debt.

The Fund has modestly outperformed its strategic benchmark over a 1, 3, 5 and 10-year period. Annualised returns over 10 years were 9.0% per annum, well above the investment return assumptions used by the Actuary as part of the triennial valuation.

In response to a question from Mr Jenkinson as to the funding level which, at the last triennial  valuation stood at  99%, the Director of Corporate Services indicated that whilst it was apparent the Fund’s assets had performed well recently, the Fund’s liabilties were not tracked on a regular basis and as such, an indicative funding level would be next available at the end of the financial year.

RESOLVED – That the Pension Fund Investment performance and the portfolio of investments for the quarter ended 30 September 2020 be noted.

Report of the Director of Corporate Services

The Director of Corporate Services submitted a summary of activity during the quarter ended 30 September 2020 by the Fund’s investment managers in fulfilment of their corporate governance and socially responsible investment obligations, including details of their voting activity on corporate resolutions for companies held in their portfolios.

The Director also submitted the quarterly report of the Local Authority Pension Fund Forum (LAPFF) and the Quarterly Stewardship Report issued by LGPS Central Limited.

Mr Jenkinson indicated that he was pleased that the information was in the public domain and suggested that it should be publicised more widely.

In response to a question from Cllr Sutherland on the timeframe for the production of the Climate Risk Report, the Director of Corporate Services indicated that the Fund was currently working with LGPS Central and other Partner Funds on this matter, to ensure the findings in the report were fully understood.  The Director added that the Company had hired a new Director for Responsible Investment  who will assist Partner Funds with their responsible investment activities.

RESOLVED – That the content of the Responsible Investment (RI) report, including the Local Authority Pension Fund Forum (LAPFF) Quarterly Engagement Report and LGPS Central Limited (LGPSC) Quarterly Stewardship Report, be noted.

·       2 March 2021

All meetings are scheduled to start at 9.30am unless indicated otherwise.

RESOLVED – That the dates of Future meetings of the Panel, as set out below, be noted:

·       2 March 2021

(Note: All meetings are scheduled to start at 9.30am.)

RESOLVED - That the public be excluded from the meeting for the following items of business which involve the likely disclosure of exempt information as defined in the paragraph of Part One of Schedule 12A of the Local Government Act 1972 (as amended) indicated below.

PART TWO

The Panel then proceeded to consider reports on the following issues:

(exemption paragraph 3)

(Exemption paragraph 3)

(Exemption paragraph 3)

(Portfolio Evaluation report for the quarter ended 30 September 2020 attached for information)

(Exemption paragraph 3)

(Exemption paragraph 3)

(Exemption paragraph 3)

a)    Economic and Market Update

b)    Review of Position as at 31 October 2020

c)    Global Sustainable Equity

(Exemption paragraph 3)

      Confirmation of action taken by the Director of Corporate Services

(Exemption paragraph 3)

        (Exemption paragraph 3)

        (Manager presentation attached for information)

(Exemption paragraph 3)