The full agenda, reports and minutes of today's quarterly Strathclyde Pension Fund Committee meeting provide more information on the topics below.
The Committee approved the following strategic investment proposals:
- the appointment of Babson Capital to manage £300m and Oak Hill Advisors to manage £150m in multi-asset credit mandates
- investment of £150m in Alcentra Clareant European Direct Lending Fund II and £150m in Babson Global Private Loan Funds
- an amendment to the Fund's mandate with PIMCO
- initiating a review of non-exclusion, passive, low carbon investment solutions
- being prepared to co-file or publically support shareholder resolutions, or take the lead in filing shareholder proposals or vote to support our responsible investment strategy
- investigating membership of additional industry forums or industry initiatives to support engagement work around key issues such as climate change
The Committee approved the following investments within the Direct Investment Portfolio:
- £50m in Pensions Infrastructure Platform Multi-Strategy Infrastructure LP to invest in UK infrastructure assets with cash flows linked to inflation
- £20m in Scottish Equity Partners (SEP) V to invest in sectors such as internet consumer companies, cloud-enabled software, health IT and energy efficiency
- £25m in Clydebuilt Fund to invest in commercial property within the West of Scotland
The Committee also approved the 2016 / 2017 business plan and membership of the Strathclyde Pension Fund Committee Sounding Board.
The Fund's value as at 31 January 2016 was £15,369m. The Fund's return for the quarter to 31 December 2015 was +5.1%. As at 31 December 2015 the Fund's value was £15,640m, and the estimated funding level was 86.8%.
The committee noted:
- Audit Scotland and internal audit's annual audit plans
- Internal Audit's follow-up audits and reviews of the controls on property portfolio management and of early leavers processes
Two new employers have been approved for participation in the Fund: T.O.M Airdrie and Sanctuary Scotland Housing Association (SSHA).