The Chair welcomed everyone to the meeting including members of thepublic.

Apologies were noted as above.

Members declared no further interests in addition to those included in the relevant register.

George Jabbour declared a non-pecuniary interest in relation to the nature of his campaigning work, including the way public sector pension funds manage their funds.

The following changes to the Joint Committee 2024/25 membership were noted:

Cllr Anne Walsh, Tyne and Wear Pensions Authority, would be standing down from her role.

Cllr Eddie Strengiel, Lincolnshire Pension Fund, may not be returning to his role as he will become chair of the county council.

On behalf of the Joint Committee the Chair thanked both members for their contribution and support to the committee.

Questions had been received from Ms Alison Whalley, Ms Jenny Condit and Lindsey Coeur-Belle which the Chair had agreed should be responded to.

The Chair provided responses in terms of the Joint Committee’s position and the approach taken by the Border to Coast company on the issues raised was explained. A full copy of the questions and the responses is appended to the minutes.

The minuteswere received,and members were asked to approve.

RESOLVED– The minutesof themeeting held on28 November 2023be agreedas a truerecord.

It was noted that the schedule required update to reflect that the next meeting will take place on 20 June and not the 18June as stated.

RESOLVED – To note the scheduled dates for meetings of the Joint Committee and member workshops for the 2024/25 and 2025/26 municipal years as set out in the report.

A report was presented updating the Joint Committee on the current position of the agreed budget confirming that the expenditure to date was £42,415.

It was proposed that the budget for 2024/25 should be increased to £50,000.

RESOLVED–

          i.          Tonote the budget position for 2023/24.

        ii.          To agree a budget for 2024/25 of £50,000.

George Graham presented a report outlining the proposed changes to the Joint Committee’s approach to the oversight of the work of the Border to Coast operating company and the how this is supported by the Officer Operations Group(OOG).

Discussions took place around the need to avoid duplication of the work of individual pension committees, with the quarterly performance reviews moving to an Investment OOG. The need to ensure a clear mechanism is in place for raising issues that may require Joint Committee input prior to the annual review was also raised.

It was noted that to allow any new process to settle it is proposed to leave the previously agreed proposal to carry out an effectiveness review of the Joint Committee in abeyance and return to it once these new arrangements and any changes in membership are in place.

RESOLVED:

          i.          To approve the changes to the way in which the Committee’s agenda is structured and the way in which the Committee relates to the OOG as outlined in the body of this report.

        ii.          To agree to leave the effectiveness review of the Joint Committee in abeyance as outlined in the report. A timeline to be provided by the OOG at the June meeting.

       iii.          To agree that the OOG will report to the Joint Committee by exception any in year issues.

A report was presented that outlined a proposed protocol for dealing with public questions at the Joint Committee.

It was noted that the wording at 3.2b i) would be rephrased in relation to the geographical area.

RESOLVED– To approve the protocol for dealing with public questions at meetings of the Joint Committee as set out in the body of the report.

Sally Ronald presented a report providing the Committee with an update on the Responsible Investment activity undertaken by the Company on behalf of Partner Funds over the period since the last meeting.

Particular reference was made to engagement supporting priority themes, the ongoing work to prepare for the voting season and consultations related to responsible investment.

Members discussed the importance of communications with Pension Committees and ensuring that the Economic Activity of Public Bodies (Overseas Matters) Bill does not erode local input into responsible investment activities.

It was noted that further information around the Bill would be made available from LAPFF and SAB.

Engagement with key banks was discussed, looking at existing collaborative systems. Measuring the success of the RI policy was also discussed with an option for case studies to be presented at future meetings.

The Committee noted and congratulated Border to Coast on the achievements set out in the report:

·        Pensions for Purpose - Paris Alignment Award – Best Climate Change Policy Statement.

·        Principles for Responsible Investment (PRI) assessment outcomes

·        Retention of signatory status to the UK Stewardship Code

RESOLVED– To note the contents of the report.

Joe McDonnell presented a report to update members on the quarter 4 market environment and fund performance. It was noted that the report now includes commentary on debate across the asset allocation committee. 

Members discussed the oversight of performance of below benchmark equities and questioned how these would be improved. Examples were given of ways forward including review of management structures within companies along with the annual reviews that are schedule for these companies.

RESOLVED – To note the contents of the report.

Exclusionof the Public andPress

RESOLVED – That under Section 100(A) of the Local Government Act 1972, thepublic be excluded from the meeting for the following items of business on thegrounds that they involve the likely disclosure of exempt information as defined inparagraph 3 of Part 1 of Schedule 12A of the Act and the public interest not todisclose informationoutweighs thepublic interest indisclosing it.

A report was presented detailing the proposal to launch a factor-based indexed equity fund. The paper set out the background of the work that has already taken place and gave suggested timelines, dependant on Pensions Committee approvals. It was noted that the Company’s Board had interrogated the timeline and were happy with the proposals.

The committee considered the proposal and following discussion around key areas noted their support.

RESOLVED - To note the overview of the Factor Based Indexed Equities

Graham Long presented a report summarising the annual reviews of Sterling Investment Grade and Multi Asset Credit and setting out further work to be undertaken to re-evaluate MAC secondary benchmarks and manager allocations.

Following discussion around the basis of the manager ratings and risks associated to key persons it was:

RESOLVED– To note the contents of the report.

A report was presented that detailed the annual review of the Sterling Index-linked Bond Sub-fund. Key points were noted in relation to performance, benchmarking and resourcing. It was noted that no substantive changes to the Sub-fund were considered necessary following the annual review.

Following discussion around timescales and window of opportunity itwas:

RESOLVED– To note the contents of the report.

The CEO report was presented updatingthe Committeeon activityacross the  whole rangeof theCompany’s activity.

The Committee were updated on the following key areas:

·        Partner Fund collaboration.

·        An update on progress in relation to corporate functions including the expected outturn for the Operating Budget.

·        The key business risks to the organisation, noting that Political risk continues to be significant.

Following discussion around impact of delays in recruitment it was:

RESOLVED: To note the contents of the report.

Richard Hawkins was welcomed to the Committee.

A review of the performance and activity of the Border to Coast Investment Funds over Q4 2023 was presented which set out detail in the following key areas:

• Market Value.

• Performance.

• Market Background.

Following discussion, it was:

RESOLVED – To note the contents of the report.

The Committee discussed the work that SAB is carrying out in relation to the sanctions Bill. The Procurement Bill was also noted as coming into force in October 2023.