Issue - meetings

(a)  The Committee considered the contents of the draft submission.

(b)  The Committee delegated responsibility for approving the final submission to the Head of Clwyd Pension Fund.

Mr Latham introduced this report and highlighted the two recommendations on page 185. The appendix included the draft Stewardship Report which would need to be submitted by the end of October, ahead of the next Committee in November, hence the reason the Committee were being asked to consider it at this meeting and delegate responsibility to make any final changes to the Head of Clwyd Pension Fund. He added the following key points:

-       The drafting of the Stewardship Report had been supported by Mercer and contained matters the Fund already does, had done in the past, or planned to do in the future.

-       The Fund were part of the WPP which had already successfully submitted a report for the Stewardship Code earlier this year.

-       Two thirds of the Fund’s assets were held outside the WPP, so Mr Latham believed it was right for the Fund to also become a signatory of the Code.

-       After submission, the Financial reporting Council (FRC) would make comments and suggestions for improvements, regardless of whether the submission was successful or not. If it is successful, the Fund would need to demonstrate ongoing development and improvements, as they are required to reapply annually to retain signatory status.

-       Mr Latham highlighted that principle 1 included a definition of what stewardship is - “Signatories’ purpose, investment beliefs, strategy, and culture enable stewardship that creates long-term value for clients and beneficiaries leading to sustainable benefits for the economy, the environment and society”.

-       Paragraph 1.07 highlighted the four main sections and the 12 underlying principles.

-       Paragraph 1.09 to 1.12 highlighted the main areas and how they were addressed through the Fund or the WPP.

-       Paragraph 1.13 onwards gave key points to note as part of the submission. Mr Latham believed a particularly strong area of the Funds submission was in relation to the private markets portfolios where  the Fund has a sustainable focus.

RESOLVED:

(a)      The Committee considered the contents of the draft submission.

(b)      The Committee delegated responsibility for approving the final submission to the Head of Clwyd Pension Fund.