Agenda item

To receive an update from the Investment Working Group.

The Board received a report providing an update on the work of the Investment Working Group, a summary of investment performance to date and the development of an Investment Strategy.

Investment Strategy

The Board was informed that the Investment Strategy had been reviewed by Hampshire County Council’s Legal Team and it had been concluded that the Strategy conformed with the SAMM agreement.  However, it was made clear that this advice was given to Hampshire County Council (HCC) in respect of HCC’s position, and was not intended as legal advice to the JSPB.

It was noted that the Board was investing in pooled funds and would therefore be reliant on the policies that governed those funds to ensure that they did not invest in organisations that exacerbated climate change and any changes to these policies to bring them in line with the stated aims of the Government’s Climate Emergency declaration would take time.  In the meantime, it was agreed that the matter would be raised with Arlingclose the Board’s Advisors.

The Board was reminded that it had agreed that the contract with Arlingclose would be reviewed on an annual basis.  If a decision was made to terminate the contract with Arlingclose, then the Board was contractually obliged to provide Arlingclose with written notification of this intent to terminate at least three months before the contract renewal date i.e. by 1^st September each year.  Consequently, the Board would need to review its contract with Arlingclose at its April meeting.

Investment Performance

It was reported that a total of £6million had been invested across three funds (CCLA property Fund, Kames Diversified Monthly Income Fund and Schroder Income Maximiser Fund) with a return of £84,700 as at 31^st March 2019.

It was noted that the loss in the investment made in the CCLA Property Fund was attributed to the need for an initial expenditure on property to be made.

It was agreed that in order to best utilise the balance within the Endowment Fund, the Investment Working Group would meet with Arlingclose to discuss potential future investments.  A report outlining these discussions and setting out a proposed way forward would be brought to the Board’s next meeting for consideration.

The Board noted that any investments would need to be made in line with the Administering Body’s Treasury Management Strategy Statement (TMSS) which was agreed in February each year for the year ahead.  Consequently, to enable investments to be incorporated into the TMSS, the Board would need to make a decision on potential investment amounts by November each year. 

RESOLVED that:

      i.        The investment strategy as set out in Appendix 1 of the report, be approved subject to a review of section 7.

     ii.        The Investment Strategy would be reviewed by December 2020.

    iii.        The annual timescales for the renewal or termination of the contract with Arlingclose be noted.

   iv.        Arlingclose be invited to a future meeting.

     v.        The value of the investments made and the dividends due as at 31^st March 2019 be noted.

   vi.        Arlingclose be asked to provide advice on potential future investments in order to best utilise the balance within the Endowment Fund.

  vii.        The requirements surrounding investment decisions before any investments can be made by the Administrative Body on behalf of the Joint Strategic Partnership Board be noted.

 viii.        Section 7 of the Investment Strategy to be reviewed to ensure it took climate change mitigation into account.