Agenda and minutes

That Mr P. C. Osborne CC be appointed Chairman of the Investment Subcommittee for the period ending with the date of the Annual Council meeting in May 2019.

That Mr L. Breckon CC be appointed Vice Chairman of the Investment Subcommittee for the period ending with the date of the Annual Council meeting in May 2019.

The minutes of the meeting held on 11 October 2017 were taken as read, confirmed and signed.

The Chief Executive reported that no questions had been received under Standing Order 35.

The Chief Executive reported that no questions had been received under Standing Order 7(3) and 7(5).

There were no urgent items for consideration.

The Chairman invited members who wished to do so to declare any interest in respect of items on the agenda for the meeting.

No declarations were made.

The Subcommittee considered a report of the Director of Corporate Resources, which provided members with information relating to the Leicestershire Pension Fund’s current Millennium currency programme. A copy of the report is filed with these minutes marked ‘8’.

Arising from discussion, the following points were noted:

i)             The Fund’s investment in the Millennium Currency Overlay Programme was judged on the absolute return delivered, rather than as a return on investment due to the relatively small outlay of £1.5million.

ii)            The Fund’s active currency mandate with Millennium, which is focused on a relatively small portfolio targeting significant returns  offered a diversified source of income which differed from other available currency investments.

iii)           Since the Fund first invested in the Millennium Currency Programme in 2006 it had generated a positive return despite losing money in each of the last three financial years.

RESOLVED:

That the report be noted.

It was noted that the next meeting would be held on 8 August 2018.

(This meeting was subsequently cancelled)

The Subcommittee considered a briefing paper produced by the Fund’s Independent Investment Advisor and Hymans Robertson, which was followed by questions from members. A copy of the briefing note is filed with these minutes marked ‘11’. The note was not for publication by virtue of Paragraphs 3 and 10 of Part 1 of Schedule 12(A) of the Local Government Act 1972.

RESOLVED:

That the briefing papers be noted.

[At this point Millennium Global representatives joined the meeting]

A presentation will be considered as part of this item.

The Subcommittee received presentations by representatives from Millennium Global which was followed by questions from members. A copy of the presentation is filed with these minutes marked ‘12’. The presentation was not for publication by virtue of Paragraphs 3 and 10 of Part 1 of Schedule 12(A) of the Local Government Act 1972.

[At this point Millennium Global representatives withdrew from the meeting]

RESOLVED:

a)    That the presentation delivered by Millennium Global be noted.

b)    That the Leicestershire Pension Fund continues to invest in the Millennium currency programme, maintaining a 3% target volatility against a notional programme size of £250m and that Officers be requested to review the size of the programme, as part of the annual investment review.