The Pensions Committee of Hackney Council met on Monday 30 September 2024, approving recommendations for investment decisions and the release of a member survey. The committee also noted reports on the fund's performance, risks, and responsible investment activities.

Nature Based Solutions - Investment Decision

The committee approved recommendations for an investment decision concerning Nature Based Solutions.

Impact Property - Investment Decision

Recommendations for an investment decision regarding Impact Property were approved by the committee.

Responsible Investment Scheme Member Survey - Supplementary Paper

The committee approved the contents of a member survey for release in October 2024, subject to further feedback and final approval by the Chair. Officers will continue to work with the Council's Communications team on the survey's formatting and distribution.

High Level Monitoring Report

The committee noted the Business Plan update, the current measures on the Strategic Objectives Scorecard, the Risk Register and identified risks, and the Breaches Register.

Resonance Limited - Local Impact Property Offer

Recommendations were approved for the Local Impact Property Offer from Resonance Limited.

Stewardship Code Submission - Supplementary Paper

The committee recommended approving the draft submission for the Stewardship Code, subject to final changes agreed with the Chair and Vice-Chair. Further actions arising from the draft submission were also noted.

Funding Risk Update & 2025 Valuation Planning

The committee noted the report on funding risk and planning for the 2025 valuation. The report highlighted a significant improvement in the fund's funding position, with the funding level rising to 139% as of 30 June 2024, largely due to increased global interest rates. This has led to a surplus of approximately £580 million. The report also detailed the planning underway for the 2025 actuarial valuation, including advanced data review, asset-liability modelling, and an assumptions review. Key risks such as longevity and climate risk were also discussed, with recommendations for continued monitoring and scenario testing.

Responsible Investment Working Group Update

The committee noted the report from the Responsible Investment Working Group. The update included discussions on the Local Authority Pension Fund Forum (LAPFF) engagement activities, a draft submission for the Stewardship Code, and a responsible investment survey for scheme members. LAPFF highlighted engagements with FTSE 100 companies on climate transition plans, including a success with Barclays Bank ceasing financing for new oil fields. The draft Stewardship Code submission, prepared by Redington, covers the period up to 31 March 2024 and is due for submission in October. The RIWG also considered a draft member survey to gauge priorities and concerns regarding responsible investment.

Quarterly Update

The committee noted the quarterly update report, which covered governance, funding, investment performance, and pension administration and communications. The report indicated a small increase in the fund's funding level and provided updates on the London CIV and the implementation of the Fund's Responsible Investment policy. Investment performance for the quarter to 30 June 2024 was detailed, with some funds underperforming their benchmarks. The report also outlined progress on pension administration and communications, including website updates and the issuance of annual newsletters.

Exclusion of The Press And Public

The committee approved the exclusion of the press and public from proceedings during the consideration of exempt items on the agenda, as it was likely that disclosure of exempt information would occur.