Agenda and draft minutes

Hampshire Pension Fund Responsible Investment Sub-Committee - Friday, 6th March, 2020 10.00 am

Venue: Denning Room

Contact: Email: members.services@hants.gov.uk 

Items
No. Item

15.

Apologies for Absence

To receive any apologies for absence from the meeting.

Minutes:

The Director of Corporate Resources, Carolyn Williamson, sent her apologies.

16.

Declarations of Interest

All Members who believe they have a Disclosable Pecuniary Interest in any matter to be considered at the meeting must declare that interest and, having regard to Part 3 Paragraph 1.5 of the County Council's Members’ Code of Conduct, leave the meeting while the matter is discussed, save for exercising any right to speak in accordance with Paragraph 1.6 of the Code.  Furthermore all Members with a Personal Interest in a matter being considered at the meeting should consider, having regard to Part 5, Paragraph 4 of the Code, whether such interest should be declared, and having regard to Part 5, Paragraph 5 of the Code, consider whether it is appropriate to leave the meeting while the matter is discussed, save for exercising any right to speak in accordance with the Code.

Minutes:

Members were mindful that where they believed they had a Disclosable Pecuniary Interest in any matter considered at the meeting they must declare that interest at the time of the relevant debate and, having regard to the circumstances described in Part 3, Paragraph 1.5 of the County Council’s Members’ Code of Conduct, leave the meeting while the matter was discussed, save for exercising any right to speak in accordance with Paragraph 1.6of the Code.  Furthermore, Members were mindful that where they believed they had a Non-Pecuniary interest in a matter being considered at the meeting they considered whether such interest should be declared, and having regard to Part 5, Paragraph 2 of the Code, considered whether it was appropriate to leave the meeting whilst th matter was discussed, save for exercising any right to speak in accordance with the Code.

17.

Confirmation of Minutes pdf icon PDF 253 KB

To confirm the minutes of the previous meeting on 3 September 2019.

Minutes:

The minutes of the Responsible Investment Sub-Committee held on 3 September 2019 were confirmed.

18.

Deputations

To receive any deputations pursuant to Standing Order 12.

Minutes:

No deputations were received.

19.

Chairman's Announcements

To receive any announcements the Chairman may wish to make.

Minutes:

The Chairman reminded members that the Panel and Board had agreed to review the appointments to the sub-committee after its first year of operation.

20.

Responsible Investment Policy Review pdf icon PDF 312 KB

To consider a report from the Director of Corporate Resources-Corporate Services providing the Sub-Committee with a summary of the output from the specialist consultants who have reviewed the Pension Fund’s Responsible Investment policy.

Additional documents:

Minutes:

The Responsible Investment Sub-Committee considered the report from the Director of Corporate Resources(Item 6 in the Minute book) proposing changes to the Pension fund’s Responsible Investment policy.  The changes had been made following a review of the policy by specialist RI consultants from MJ Hudson spring, who had also delivered training to the Pension Fund Panel and Board in January 2020.

 

MJ Hudson Spring had also suggested a ‘roadmap’ of activity for the Pension Fund to further improve and develop the Fund’s approach to RI, starting with greater transparency of the Fund’s investment managers’ RI capabilities and the ESG risks in the fund’s holdings, which can be incorporated into future RI reporting.  It was recommended that MJ Hudson Spring are commissioned to conduct a baseline RI assessment of the Fund’s investment managers and a small sample of the Fun’s alternative investments for an approximate cost of £20,000.

 

RESOLVED:

 

a)    That the updates to the RI policy based on feedback from MJ Hudson Spring are approved and recommended to the Pension Fund Panel and Board.

b)    That the sub-committee note the suggested RI roadmap for Hampshire from HM Hudson Spring and approve and recommend to the Pension Fund Panel and Board the proposal for the baseline RI assessment of the Fund’s investment managers.

21.

Shareholder Voting Highlight Report pdf icon PDF 414 KB

To consider a report from the Director of Corporate Resources-Corporate Services providing information on how the Pension Fund’s investment managers have voted on behalf of the Fund for the equities that they are invested in.

Minutes:

The RI Sub-Committee received and noted the report from the Director of Corporate Resources (Item 7 in the Minute Book) providing a summary of how the Pension Fund’s investment managers have voted on behalf of the Fund for the equities that they are invested in.  The analysis showed that the majority of votes cast against companies’ management were for the following reasons:

·         Nominees for company directors being not sufficiently independent,

·         Remuneration policies where the level of pay was felt to b excessive, and

·         The appointment of auditors where the incumbent audit firm has been in place too long or the disclosure of non-audit fees to the company was not clear.

22.

Exclusion of Press and Public

That in relation to the following items the press and public be excluded from the meeting, as it is likely, in view of the nature of the business to be transacted or the nature of proceedings, that if a member of the public were present during the items there would be disclosure to them of exempt information within Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972, and further that in all circumstances of the case, the public interest in maintaining the exempt information outweighs the public interest in disclosing the information, for the reasons set out in the report.

Minutes:

RESOLVED:

 

That the public be excluded from the meeting during the following items of business, as it is likely, in view of the nature of the business to be transacted or the nature of the proceedings, that if members of the public were present during these items there would be disclosure to them of exempt information within Paragraphs 3 and 4 of Part1 of Schedule 12A to the Local Government Act 1972, and further that in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information, for the reasons set out in the reports.

 

23.

Confirmation of Exempt Minutes

To confirm the Exempt Minutes of the meeting held on 3 September 2019.

Minutes:

The exempt minutes of the RT Sub-Committee held on 3 September 2019 were confirmed.

24.

Responsible Investment Annual Report

To consider a report from the Director of Corporate Resources-Corporate Services introducing the Pension Fund’s first Responsible Investment Annual Report.

Minutes:

The Panel and Board considered the exempt appendix from the Director of Corporate Resources (Item 10 in the Minute Book) reporting on the Pension Fund’s RI activities. [SUMMARY OF A MINUTE WHICH CONTAINS EXEMPT INFORMATION]