Agenda and draft minutes

To appoint a Chairman of the Sub-Committee until its first meeting following the County Council AGM in 2025.

Mr Hodgson opened the meeting and asked for nominations for Chairman.

Councillor Tom Thacker, seconded by Councillor Rob Mocatta, proposed that Councillor Mark Kemp-Gee be elected Chairman. No other nominations were received, therefore the proposition was put to the vote and carried.

 Councillor Kemp-Gee took the Chair.

To appoint a Vice-Chairman of the Sub-Committee until its first meeting following the County Council AGM in 2025.

Councillor Mark Kemp-Gee, seconded by Councillor Rob Mocatta, proposed that Councillor Tom Thacker be elected Vice-Chairman. No other nominations were received, therefore the proposition was put to the vote and carried.

To receive any apologies for absence.

Apologies for absence were received from Councillor Jonathan Glen, with Councillor Rob Mocatta in attendance as the Conservative deputy, and Mr Phillip Reynolds with Mr Simon Walker in attendance as the deputy member.

The Chairman also welcomed Cllr Simon Letts, who attened the meeting as an observer.

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.

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 1.6 of 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 the matter was discussed, save for exercising any right to speak in accordance with the Code.

No declarations were made.

To confirm the minutes of the previous meeting, held on 1 March 2024.

The minutes of the previous meeting were agreed as a true record and signed by the Chairman.

To receive any announcements the Chairman may wish to make.

There were no announcements on this occasion.

To receive any deputations.

The sub-committee received no deputations on this occasion.

To receive a report from the Deputy Chief Executive and Director of Corporate Operations updating the Sub-Committee on communication to and from scheme members since its last meeting.

The Sub-Committee received a report from the Deputy Chief Executive and Director of Corporate Operations updating the Sub-Committee on communication to and from scheme members since its last meeting.

It was noted that the report showed there had been three items of correspondence in the previous six months, one relating to climate change, one relating to the conflict in Gaza and an item of correspondence providing positive feedback following the Panel and Boards intention to disinvest in Fossil Fuels.

Members discussed investment in armaments and, whilst noting that the Panel and Board had laid out no specific intention to invest in armaments, suggested that the exclusions of the Fund’s investment managers should reviewed by the Responsible Investment Sub-Committee. Members identified the benefits in defining a clear statement of governance on investment policy in this area, to enhance transparency for and communication with Pension Fund members. It was noted that the Panel and Board should remain neutral in its investment strategy and focus on delivering its fiduciary duty.

It was also heard that a specific email address for the fund had been introduced for responsible investment, to encourage members of the Pension Fund to share their views and raise questions regarding responsible investment.

RESOLVED:

That the sub-committee note the communication received from scheme

members on Responsible Investment (RI) and that the Pension Fund will

publish its fifth annual RI update for scheme members.

To receive a report from the Deputy Chief Executive and Director of Corporate Operations clarifying the Fund’s Responsible Investment priorities.

Members received a report from the Deputy Chief Executive and Director of Corporate Operations clarifying the Fund’s Responsible Investment priorities.

Members heard that ACCESS had undertaken a significant review of its responsible investment policy, as advocated for by the Hampshire Pension Fund, with the work identifying a number of proposed priorities which Hampshire may choose to align to. It was heard that alignment would have significant benefits in the management of the Fund and was hoped that this would have a positive influence on the wider market.

Members observed the core focus on climate change under environmental considerations, with suggestion that this be broadened to consider wider climate impacts, such as water quality. 

RESOLVED:

That the sub-committee note the ACCESS pool’s proposed approach to Responsible Investment (RI) priorities and recommends to the Pension Fund Panel and Board that it adopts ACCESS’s RI priorities in Hampshire’s own policy.

To receive a report from the Deputy Chief Executive and Director of Corporate Operations providing information regarding the Pension Fund’s investment managers’ stewardship of the Pension Fund’s assets.

The sub-committee received a report from the Deputy Chief Executive and Director of Corporate Operations providing information regarding the Pension Fund’s investment managers’ stewardship of the Pension Fund’s assets.

Members observed the difference in voting positions by the various investment managers, particularly the disparity in the approach between overseas fund managers and those based within the UK. It was noted that it is being recommended to the ACCESS Joint Committee to undertake a competitive tender process to appoint an appropriate and well-established agent to make voting decisions on Hampshire’s behalf in future.

RESOLVED:

That the Pension Fund Responsible Investment Sub-Committee note the report, including how the Pension Fund’s investment managers have voted in the Fund’s portfolios and engaged with the management of these companies as highlighted in this report and reported in the Fund’s Stewardship Code update report attached to this report.