Agenda and minutes

To note any changes to the membership.

1.1       There were no changes to the membership.

To receive notifications of interest by Members and Officers of any personal or prejudicial interests.

2.1       There were no declarations of interest.

Report of the City Treasurer.

3.1       The Committee had before them a report recommending that the City Council join the Local Authority Pension Fund Forum (LAPFF). The Chairman invited Keith Bray (Forum Officer, LAPFF), to address the Committee.

3.2       Keith Balmer then gave a presentation on the work of the LAPFF. He began by stating that the Local Government Pension Scheme (LGPS), which the LAPFF represented, was the sixth largest funded pension scheme in the World and was a significant institutional national and international investor. LAPFF was a voluntary association of LGPS funds that sought to protect and enhance the value of its members’ shareholdings. LAPFF met four times a year and valued elected member input. Membership of LAPFF included 26 London authorities, of which the London boroughs of Barnet, Havering and Hammersmith and Fulham had all joined in the last year, 28 English counties, eight Welsh authorities, four Scottish authorities, two passenger transport authorities and the Environment Agency. The areas LAPFF looked into included environmental, social and governance issues, although Keith Bray emphasised that protecting the shareholders’ value was the highest priority. He then referred to instances where the LAPFF had effectively lobbied for changes, including those involving Marks and Spencer, Barclays, Shell and BP.

3.3       During discussions, the Chairman asked what would happen if the City Council did not share the same view as LAPFF on a particular issue. She sought further details on the workload officers could expect if the City Council joined LAPFF, including the frequency of emails likely to be received and would Members of the Committee be copied into these messages. Members sought further details on the LAPFF’s staff and its work with Marks and Spencer. In respect of the issues that the LAPFF took on, it was asked what mechanisms were used in determining these. Information on how LAPFF’s funding was used was also sought.

3.4       In reply to issues raised by Members, Keith Bray advised that differences of opinion within LAPFF existed, including on such matters as climate change. However, he remarked that he could not recall any instance where an LAPFF member had felt embarrassed about an issue and furthermore LAPFF would not publicise the opinion of any authority that had disagreed. However, notwithstanding this, LAPFF members were welcome to publicise any differences of view if they so wished. The Committee noted that LAPFF produced quarterly engagement reports. Keith Bray informed Members that the LAPFF had carried out a corporate governance review of Marks and Spencer that had culminated in recommendations in separating roles to prevent too much responsibility being given to a smaller number of individuals, which also helped in terms of business continuity should someone depart the organisation abruptly. Keith Bray advised that LAPFF’s Executive Committee ensured that the agendas for LAPFF meetings were appropriate and members were welcome to make suggestions on what issues to discuss.

3.5       Keith Bray advised that there was no staff that supported LAPFF on a full time basis. The financial resources the LAPFF received were used to commission  ...  view the full minutes text for item 3.

RECOMMENDED: That under Section 100 (A) (4) and Part 1 of Schedule 12A to the Local Government Act 1972 (as amended), the public and press be excluded from the meeting for the following item of business because they involve the likely disclosure of exempt information on the grounds shown below and it is considered that, in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information:

4.1       RESOLVED:

That under Section 100 (A) (4) and Part 1 of Schedule 12A to the Local Government Act 1972 (as amended), the public and press be excluded from the meeting for the following item of business because they involve the likely disclosure of exempt information on the grounds shown below and it is considered that, in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

Report of the City Treasurer.

5.1       The Committee considered and agreed the recommendations of a confidential report on fixed income strategy.

Report of the Director of People Services.

6.1       The Committee considered and agreed the recommendation of a confidential report relating to a voluntary scheme pays request.