The full agenda, reports and minutes of today's quarterly Strathclyde Pension Fund Committee meeting are now available.
The Committee considered the latest in a series of papers developing the Fund's climate change strategy. Results of a carbon footprinting exercise show that the Fund's listed equity portfolio is 7% less carbon intensive than the global index. The committee agreed:
- to review the carbon footprint of the Fund's listed equity holdings every two years and investigate the inclusion of other asset classes in the Fund's carbon footprint
- to progress engagement with the largest contributors to the Fund's active equity carbon footprint
- to join the Institutional Investors Group on Climate Change (IIGCC)
- to continue to monitor development of low carbon investment approaches but not adopt such a strategy at this time
The Committee approved one new investment allocation as part of the Fund's short term enhanced yield strategy:
- the appointment of Ashmore to manage an emerging market debt mandate at an initial value of 1.5% of the total Fund
The Fund's value as at 31 October 2016 was £18,714m.
The Fund's return for the quarter to 30 September 2016 was +7.4%. For the year to 30 September it was +22.5%.
As at 30 September 2016 the Fund's value was £18,206m, and the estimated funding level was 81.7%.
The Committee also:
- agreed a risk policy and strategy statement for the Fund
- noted 2 separate reviews of the management structure and the governance of the LGPS in Scotland which will both conclude early in 2017
- noted the internal audit review of governance arrangements within SPFO
- noted that on behalf of the Fund the Convener had co-signed a further batch of 2016 letters to FTSE 100 companies to support the ShareAction 'Just Pay' Living Wage campaign