Agenda and minutes

Minute of Meeting held on 4 December 2017 to be noted and signed by the Chairman. (Copy attached).

There had been circulated copies of the Minute of the Meeting of 4 December 2017.

DECISION

NOTED for signature by the Chairman.

Consideration of any issues required to be raised.

The Board reviewed the joint meeting and, in particular, referred to KPMG’s overview on Environmental, Social, Governance (ESG).  Members highlighted that UBS’s UK Passive Equity Fund included holdings in tobacco, carbons and alcohol and questioned this in terms of the Fund’s ESG considerations.  Mrs Robb explained that the UBS fund was the only passive fund within the Fund’s equity portfolio and as a passive fund UBS are required to track an agreed index.  The index will list the invesments and these inclue mining and energy sector.   There was a range of different market indices that could be tracked, including those with higher ESG scores.  However, any changes could alter the Fund’s performance.   The Board considered the issue and discussed Trade Union policy and whether employees would pay higher contribution rates to enable the Fund to become more active in ethical investment.   Mrs Robb added that she did occasionally receive communication from individual members, particularly with regard to the Fund’s investments in carbon fuels.  Following consideration, the Board agreed that ultimately, their fiduciary duty was to prioritise the needs of Pension Fund beneficiaries.  Mrs Robb advised that the Board could ensure that investment managers were monitored robustly and followed ESG considerations.  She referred to KPMG’s quarterly investment reports which included details on investment managers’ voting behaviours and gave reasons for opposing votes.  The Pension Fund Investment Performance Sub-Committee also received regular presentations from fund managers and this included updates on their ESG performance.  At these meetings, officers and members were also able to question Fund Managers if they were concerned or required clarification on any aspect of their portfolios. 

2.2       The Board then expressed concern at the lack of information from the Scheme Advisory Board relating to the structure review and would await with interest the response to the Committee Chairman’s letter.  Mrs Robb advised that she would circulate any information received when available. 

            DECISION

            NOTED.

The next meeting is scheduled to be held on Thursday, 8 June 2018 following the Pension Fund Committee and Pension Board joint meeting.

The next meeting of the Pension Board was scheduled to take place on Thursday, 8 June  2018.

DECISION

NOTED.