Agenda and draft minutes

Apologies for absence were received from James Smith, Assistant Director - Finance (Strategy) and Councillor Cathrine Russell.

Members are asked to declare any interest and the nature of that interest that they may have in any of the items under consideration at this meeting.

Robert Austin declared a disclosable pecuniary interest as a member of LGPS. Councillors Phil Bignell and Graham Lawman disclosed personal interests as his wife was a deferred member of LGPS.

To confirm the minutes of the previous meeting held on 30 November 2022.

RESOLVED:

That the minutes of the Investment sub-committee of 30 November 2022 be approved and signed as a correct record.

The Investment Sub-Committee to receive a quarterly performance update from Mercer for the period ending 31 December 2022.

At the Chair’s invitation, James Thurgood from Mercer presented the quarterly performance report.

The overall financial situation was improving with increases in inflation and interest rates slowing down. Economic growth was starting to increase in China after the disruption of Covid.  Asset returns were positive, and a positive performance in quarter four had made up for ground lost over the earlier part of the financial year. The estimated funding level had increased to 135%, with a modest increase in assets over the quarter (£34.6m), coupled with the decrease in liabilities (£80m).

Baillie Gifford had performed poorly, although this was not unexpected and was somewhat offset over the long term where performance was good. Should performance not improve, there may be a future recommendation to come out of the portfolio, which had a high growth style which was not particularly aligned with diversification. It was noted that the performance was negative but constituted a small part of the portfolio.

RESOLVED:

That the Investment Sub-Committee noted the quarterly performance report for the period ending 31 December 2022.

The following report(s) contain exempt information as defined in the following paragraph(s) of Part 1, Schedule 12A of Local Government Act 1972.

*DELETE AS APPROPRIATE*

Paragraph 1 – Information relating to any individual.

Paragraph 2 – Information which is likely to reveal the identity of an individual.

Paragraph 3 – Information relating to the financial or business affairs of any particular person (including the authority holding that information).

Paragraph 4 – Information relating to any consultations or negotiations, or contemplated consultations or negotiations, in connection with any labour relations matter arising between the authority or a Minister of the Crown and employees of, or office holders under, the authority.

Paragraph 5 – Information in respect of which a claim to legal professional privilege could be maintained in legal proceedings.

Paragraph 6 – Information which reveals that the authority proposes;

a)    To give under any enactment a notice under or by virtue of which requirements are imposed on a person; or

b)    To make an order or direction under any enactment

Paragraph 7 – Information relating to any action taken or to be taken in connection with the prevention, investigation or prosecution of crime.

Members are reminded that whilst the following item(s) have been marked as exempt, it is for the meeting to decide whether or not to consider each of them in private or in public. In making the decision, members should balance the interests of individuals or the Council itself in having access to the information. In considering their discretion members should also be mindful of the advice of Council Officers.

Should Members decide not to make a decision in public, they are recommended to resolve as follows:

“That under Section 100A of the Local Government Act 1972, the public and press be excluded from the meeting for the following item(s) of business on the grounds that, if the public and press were present, it would be likely that exempt information falling under the provisions of Schedule 12A, Part I, Paragraph(s) XXXXX would be disclosed to them, and that in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information.”

The Chair moved that the remainder of the meeting be held in private:

That under Section 100A of the Local Government Act 1972, the public and press be excluded from the meeting for the following item(s) of business on the grounds that, if the public and press were present, it would be likely that exempt information falling under the provisions of Schedule 12A, Part I, Paragraph(s) 3 would be disclosed to them, and that in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

RESOLVED: Members agreed that the public and press were excluded from the remainder of the meeting and the Investment Sub-Committee moved into private session.