Venue: Cumbria House, Carlisle, CA1 1RD
Contact: Holly English Email: firstname.lastname@example.org
APOLOGIES FOR ABSENCE
To receive any apologies for absence.
Apologies for absence were received from Ms T Barber, Mr K McDonald and Mr S Haraldsen (Ms Carrick attended as reserve in his place for this meeting).
DISCLOSURES OF INTEREST
Members are invited to disclose any disclosable pecuniary interest they have in any item on the agenda which comprises
1 Details of any employment, office, trade, profession or vocation carried on for profit or gain.
2 Details of any payment or provision of any other financial benefit (other than from the authority) made or provided within the relevant period in respect of any expenses incurred by you in carrying out duties as a member, or towards your election expenses. (This includes any payment or financial benefit from a trade union within the meaning of the Trade Union and Labour Relations (Consolidation) Act 1992.
3 Details of any contract which is made between you (or a body in which you have a beneficial interest) and the authority
(a) Under which goods or services are to be provided or works are to be executed; and
(b) Which has not been fully discharged.
4 Details of any beneficial interest in land which is within the area of the authority.
5 Details of any licence (alone or jointly with others) to occupy land in the area of the authority for a month or longer.
6 Details of any tenancy where (to your knowledge)
(a) The landlord is the authority; and
(b) The tenant is a body in which you have a beneficial interest.
7 Details of any beneficial interest in securities of a body where
(a) That body (to your knowledge) has a place of business or land in the area of the authority; and
(b) Either –
(i) The total nominal value of the securities exceeds £25,000 or one hundredth of the total issued share capital of that body; or
(ii) If that share capital of that body is of more than one class, the total nominal value of the shares of any one class in which the relevant person has a beneficial interest exceeds one hundredth of the total issued share capital of that class.
In addition, you must also disclose other non-pecuniary interests set out in the Code of Conduct where these have not already been registered.
A “disclosable pecuniary interest” is an interest of a councillor or their partner (which means spouse or civil partner, a person with whom they are living as husband or wife, or a person with whom they are living as if they are civil partners).
There were no disclosable pecuniary interests declared at the meeting.
EXCLUSION OF PRESS AND PUBLIC
To consider whether there are any items on the agenda for which the press and public should be excluded.
RESOLVED, that the Press and Public be excluded from the meeting during consideration of the following agenda items on the grounds that they contain exempt information as defined under Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972 (as amended) relating to the financial or business affairs of particular individuals:-
- Agenda item 4- Border to Coast Pensions Partnership UK Listed Equity Sub-Fund Investment.
Border to Coast Pensions Partnership UK Listed Equity Sub-Fund Investment
To consider a report by the Director of Finance (Section 151 Officer).
The Committee received a report from the Director of Finance (Section 151 Officer) which updated Members on the development of the two UK listed equity sub-funds being built by Border to Coast Pensions Partnership Ltd (Border to Coast) and the due diligence work undertaken to date by Officers and the Independent Advisers on those sub-funds. In particular the report considered these and other options in relation to the Fund’s 10% allocation to UK listed equities.
It was explained that due diligence work had progressed well. Sufficient work had been undertaken to date to enable the Fund’s Officers, Independent Advisers and the Investment Sub Group (ISG) to recommend that the Committee approve in principle (i.e. subject to the satisfactory completion of due diligence by Officers and the Independent Advisers) the transfer of the Fund’s 10% allocation to UK equities, currently managed by Schroders, into the internally managed Border to Coast UK Listed Equity Fund.
It was explained that the Investment Sub Group met on July 9th 2018 to discuss the options for the Fund. The options were as follows:-
- Do nothing until the sub funds have a sufficient track record – i.e remain with Schroders
- Go passive – i.e move the Fund’s allocation from Schroders to the passive portfolio targeting performance to match the index
- Transition to the internally managed UK Listed Equity sub-fund targeting performance of FTSE All Share +1%
- Transition to the externally managed UK Listed Equity ‘Alpha’ sub-fund targeting performance of FTSE All Share +2%
The Committee discussed the various options in detail and it was decided that the best option would be to transfer the Fund’s 10% allocation to the UK equities into the Border to Coast internally managed UK Listed Equity Fund as this option was the most likely to deliver the key outcomes required by the Fund for this element of its investment allocation.
(1) approve in principle the transfer of the Fund’s 10% allocation to UK equities into the Border to Coast internally managed UK Listed Equity Fund;
(2) delegate authority to the Director of Finance (s151 Officer), in consultation with the Chair of the Committee and the two Independent Advisers, to effect the transfer once they are satisfied that the due diligence work is complete, the sub-fund arrangements are appropriate for the requirements of the Fund and the timing of transition is appropriate; and
(3) delegate authority to the Director of Finance (s151 Officer) to give Schroders (the current manager of the Fund’s UK equity mandate) at least one months’ notice to terminate the mandate in preparation for the transition.