Agenda item

Financial Advisor's Presentation

To receive a presentation from the Joint Startegic Partnership Board’s Financial Advisors Arlingclose.


Greg Reading and Amar Jandoo, Arlingclose, gave a presentation in respect of the performance of the investments made on behalf of the Joint Strategic Partnership Board. 


The Board was reminded that under their directions to Arlingclose, the primary aim of the investments made was to generate income over an extended period of time with a target income return of between 2 and 3% above inflation.  Investments had been made in Pooled Investment Funds which invested in a diverse range of assets including property, equities and bonds.


To date, the Board had invested a total of £6million split evenly between:


·         CCLA Local Authorities Property Fund (A UK commercial property fund)

·         Aegon (Previous Kames) Diversified Monthly Income Fund (A global multi-asset fund)

·         Schroder Income Maximiser (A UK equity Income fund)


All three funds had track records of providing consistent income returns.  To date, of the three investments only Aegon (Kames) Diversified Monthly Fund had shown a positive return.   However it was stressed that over recent months, financial markets had experienced a significant amount of volatility and equity markets had fallen sharply in March as the implications of the Covid-19 pandemic began to emerge and many companies paused or cancelled dividend pay-outs and property rents were rescheduled or unpaid.   Income was expected to recover in the medium term but this recovery was predicted to be slower and to a lower level than before and the investments had been made on the basis that they would be held for many years.


The Board was informed that a total of £7.4million was currently available to invest for the very long term.  It was suggested that further investments continue to focus on multi-asset funds with investments being made in funds which had historically demonstrated consistent income returns. 


It was noted that the JSPB was not a separate legal entity.  Consequently any investments made by the JSPB were made by Hampshire County Council, in their capacity as the Administrative Body and any investments made on behalf of the JSPB were subject to Hampshire County Council’s Treasury Management Strategy Statement (HCC TMSS), including the investment limits.  The HCC TMSS was approved annually in February for the year ahead and any planned investments made on behalf of the JSPB would need to fit within the limits set within the current version of the HCC TMSS at the time the investment was made.  At the current time, there was scope within the HCC TMSS to make investments on behalf of the JSPB of up to £6million before February 2021.  Any amounts to be invested over and above this limit could only be invested after the HCC TMSS was updated in February 2021, allowing the investments to be made after February 2021.


RESOLVED that the Thames Basin Heaths Joint Strategic Partnership Board (JSPB):


       i.        Notes the performance of the investments made on behalf of the JSPB.

      ii.        Notes that the Administrative Body (Hampshire County Council) cannot provide financial advice and will not be involved in decision making and therefore accepts no responsibility for any decisions made by the JSPB.

     iii.        Notes the limits placed on the maximum level of investments that can be made during the current financial year.

     iv.        Authorises the Administrative Body to make the following investments as recommended by Arlingclose as soon as possible within the constraints of the Administrative Body’s own governance:

a.    £3.2million in Ninety One (Previously Investec) Diversified Income

b.    £3.2million in CCLA Diversified Income

c.     An additional £1million in Kames Diversified Income (giving a nominal total of £3million invested in the fund).