Agenda Document Pack - Investment Review Board - 07/06/2023
Renfrewshire Council · 7 June 2023
Back to Investment Review Board — 7 June 2023 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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31/05/2023 Notice of Meeting and Agenda Investment Review Board Date Time Venue Wednesday, 07 June 2023 11:00 Remotely via MS Teams, Membership Councillor John Shaw (Convener): Councillor Iain Nicolson (Depute Convener): Councillor Alison Ann-Dowling: Councillor Jacqueline Cameron: Councillor David McGonigle: Further Information - Online Meetings Only This meeting is on-line only but is a meeting which is open to members of the public by prior arrangement. A copy of the agenda and reports for this meeting will be available for inspection prior to the meeting at the Customer Service Centre, Renfrewshire House, Cotton Street, Paisley and online at http://renfrewshire.cmis.uk.com/renfrewshire/CouncilandBoards.aspx For further information, please email democratic-services@renfrewshire.gov.uk Members of the Press and Public - contact details Members of the press and public wishing to attend the meeting should contact democratic- services@renfrewshire.gov.uk to allow the necessary arrangements to be made. Recording of Meeting This meeting will be recorded for subsequent broadcast via the Council's internet site. If you have any queries regarding this please contact committee services on democratic- services@renfrewshire.gov.uk. The recording can be accessed at the following link: https://youtu.be/cRTjlQduBNg MARK CONAGHAN Head of Corporate Governance
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31/05/2023 Items of business Apologies Apologies from members. Declarations of Interest Members are asked to declare an interest in any item(s) on the agenda and to provide a brief explanation of the nature of the interest. 1 Minute of Previous Meeting Minute of previous meeting held on 16 November 2022. 1 - 4 2 Paisley and Renfrew Common Good Funds six-month report to 31 March 2023 Report by Director of Finance & Resources. 5 - 8 3 Paisley and Renfrew Common Good Funds: review of investment and income performance Report by the Director of Finance & Resources. 9 - 18
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Minute of Meeting Investment Review Board Date Time Venue Wednesday, 16 November 2022 11:00 Remotely by MS Teams, Present: Councillor Alison Ann-Dowling, Councillor Jacqueline Cameron, Councillor David McGonigle, Councillor Iain Nicolson, Councillor John Shaw In Attendance C McCourt, Head of Finance & Business Services, G Borland, Principal Accountant, Capital Accounting, E Gray, Senior Committee Services Officer and J Barron, Assistant Committee Services Officer (all Finance & Resources). Also in Attendance K Kapitan and E Price, both Investment Consultants Hymans Robertson LLP, and G Brisbane, abrdn Capital Limited. Recording of Meeting Prior to the commencement of the meeting, the Convener intimated that this meeting of this Board would be recorded and that the recording would be available to watch on the Council’s website. Declarations of Interest There were no declarations of interest intimated prior to the commencement of the meeting. Item 1 Page 1 of 18
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1 Minute of Previous Meeting There was submitted the Minute of the meeting of the Investment Review Board held on 22 June 2022. DECIDED: That the Minute be approved. 2 Paisley and Renfrew Common Good Funds: review of investment and income performance There was submitted a report by the Director of Finance and Resources together with a presentation by K Kapitan from Hymans Robertson LLP, relative to the Paisley and Renfrew Common Good Funds, a review of investment income and the key issues pertaining thereto. G Brisbane, Head of Charities (Scotland) abrdn (formerly Aberdeen Standard Capital Limited) also provided a presentation relative to the Paisley and Renfrew Common Good fund investments performance. The presentations referred to a review of the Investment Managers’ performance for the six months to 30 September 2022; an update of markets; and the current economic climate. DECIDED: That the report and presentations be noted. 3 Paisley and Renfrew Common Good Funds: review of Investment Policy Statement There was submitted a report by the Director of Finance & Resources relative to the scope and content of the proposed Investment Policy Statement. The Council had arranged for the investments of the Paisley and Renfrew Common Good Funds to be managed by abrdn Capital Limited, and had agreed with the manager a number of principles which would govern decisions regarding those investments. The principles covered a range of issues, such as what benchmark should be employed against to assess the manager’s performance and any restrictions the manager must observe in choosing sectors or classes of asset in which to invest. These requirements were formalised in an Investment Policy Statement, which was reviewed annually to ensure that the principles remain appropriate to the requirements of the Common Good Funds. The Statement of Investment Policy was last reviewed in November 2021,and was due for review. Confirmation was received that on 22 August 2022 both Paisley and Renfrew Common Good Funds had been de-registered from the Scottish Charities Register. The Investment Policy Statement had been updated to reflect this change. Page 2 of 18
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DECIDED: That the Investment Policy Statement a copy of which was appended to the report, be approved as a replacement for the existing Statement of Investment Principles. Page 3 of 18
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1 ___________________________________________________________________ To: Investment Review Board On: 07 June 2023 ___________________________________________________________________ Report by: Director of Finance and Resources __________________________________________________________________ Heading: Paisley and Renfrew Common Good Funds six-month report to 31 March 2023 ___________________________________________________________________ 1. Summary 1.1 Hymans Robertson LLP have been engaged by the Council to provide investment advice pertaining to the Paisley and Renfrew Common Good Funds, and to assess the performance of the Funds’ investment managers, abrdn Capital Limited (formerly Aberdeen Standard Capital Limited). 1.2 A report by Hymans Robertson LLP is attached for Members’ consideration. The report provides an assessment of the performance of the Funds’ investments and income levels during the six-month period ending 31 March 2023. Hymans Robertson LLP will be represented at the meeting by David Watson (Investment Consultant), who will present his report to Members, and by Keziah Nathania. Mr Watson will also give a presentation covering an update on markets and the current economic climate. 1.3 Craig Joiner, Senior Charity Portfolio Manager, abrdn Capital Limited, will give a short presentation during which there will be an opportunity for Members to question him directly in regard to his presentation and Fund performance. Item 2 Page 5 of 18
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2 ___________________________________________________________________ 2. Recommendations 2.1 To consider the attached report and presentation from Hymans Robertson LLP and the presentation by abrdn Capital Limited. ___________________________________________________________________ Implications of the Report 1. Financial – funds generated by the Investment Manager are made available for distribution through grants and other awards agreed by Local Partnerships and the Finance, Resources and Customer Services Policy Board. All funds are managed in line with the requirements of local government and charities regulations, and in line with the Investment Policy Statement. 2. HR & Organisational Development – none 3. Community Planning – none 4. Legal – none 5. Property/Assets – none 6. Information Technology – none 7. Equality & Human Rights – the recommendations contained within this report have been assessed in relation to their impact on equalities and human rights. No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified arising from the recommendations contained in the report. If required following implementation, the actual impact of the recommendations and the mitigating actions will be reviewed and monitored, and the results of the assessment will be published on the Council’s website. 8. Health & Safety – none 9. Procurement – none 10. Risk – none 11. Privacy Impact – none 12. COSLA Policy Position – none 13. Climate Risk – none Page 6 of 18
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3 ___________________________________________________________________ List of Background Papers None ___________________________________________________________________ Author: Geoff Borland, Finance Manager 0141 487 0875 geoffrey.borland@renfrewshire.gov.uk Page 7 of 18
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