Agenda item

To receive an update from Arlingclose, the Board’s financial advisors, on the investments made by the Joint Strategic Partnership Board and to consider recommendations on further investments.

Greg Readings, Arlingclose, gave a presentation in respect of the performance of the investments made by the Board to ensure the long term financial security of the SAMM project.

The Board was reminded that to date a total of £11.7million had been invested in a variety of funds recommended by Arlingclose, the Board’s appointed financial advisors and investment of a further £4.2million in CCLA Diversified Income Fund and Fidelity Global Enhanced Income Fund was pending.  An unrealized capital loss of £940,891 was noted however it was stressed that this money would only be lost in the event that the holdings were sold. 

It was noted that interest rate increases allied to changes made to the structure of the CCLA Diversified Income Fund meant that it no longer aligned with the Board’s stated income targets and it was recommended that the pending investment of £3.2million agreed by the Board on 19^th November 2020 should be suspended and the funds returned to the cash balance and invested elsewhere.  Following delays to the opening of the account with Fidelity Global Enhanced Income Fund it was recommended that the pending £1million investment agreed by the Board on 18^th November 2021 should be put on hold and the funds invested elsewhere.    

It was acknowledged that the current economic climate and the predicted recession would cause a fall in investment income however it was stressed that the Board’s investments were a long term investment aimed at ensuring the continuation of the SAMM project in perpetuity.  It was also noted that falling share prices meant it was possible to buy a larger number of shares than might overwise be possible.

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

1. To instruct Hampshire County Council (HCC) as Administrative Body not to make the pending £3.2m investment in CCLA Diversified Income Fund, and to instead return these funds to the cash balance available for investment as recommended by Arlingclose.  Thereby rescinding the original instruction by the Board for investment on the JSPB’s behalf at the 19^th November 2020 meeting.
2. Recognising the delay in opening the Fidelity account, to instruct Hampshire County Council (HCC) as Administrative Body to put on hold the pending £1.0m investment in the Fidelity Global Enhanced Income Fund originally approved by the Board for investment on the JSPB’s behalf at the 18^th November 2021 meeting, and to return these funds to the cash balance available for investment as recommended by Arlingclose. 
3. To instruct Hampshire County Council (HCC) as Administrative Body to make on the JSPB’s behalf the following investments as recommended by Arlingclose as soon as practically possible within the constraints of the Administrative Body’s own governance:

4. To instruct Hampshire County Council (HCC) as Administrative Body that once the year end position is known for the 2022/23 financial year, to make on the JSPB’s behalf the following investment as recommended by Arlingclose as soon as practically possible within the constraints of the Administrative Body’s own governance: 

·         The remaining balance available within the Endowment Fund as at 31^st March 2023 in the Fidelity Global Enhanced Income Fund, subject to a minimum investment of £500,000 and maximum investment of £4.0m.  This investment to encompass and not be in addition to the £1.0m approved investment in this fund put on hold above.

The Board noted:

1)    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.

2)    That the Administrative Body (Hampshire County Council) will not progress making the investments until the minutes documenting the investment instructions have been approved by the JSPB.  Approval by e-mail from a majority of the JSPB members will be taken as sufficient evidence that the minutes accurately reflect the instructions of the JSPB.

NOTES

Councillor Jonathan Glen, Hampshire County Council, abstained from the vote due to his being an elected representative of the Administrative Body.

Councillor Sylvia Whyte, Runnymede Borough Council, abstained from the vote due to this being the only meeting of the Board she had attended.