2
There was submitted a report by the Director of Finance & Resources relative to the
Review of Investment Principles in relation to the Paisley and Renfrew Common
Good Funds.
The report indicated that the Council had arranged for the investments of the Paisley
and Renfrew Common Good Funds to be managed by Aberdeen Standard Capital Limited and had agreed with the manager a number of principles which governed decisions regarding these investments. These principles covered a range of issues such as what benchmark should be employed against which to assess the manager’s performance, and any restrictions which the manager required to observe when choosing sectors or classes of asset in which to invest. There requirements were formalised in a Statement of Investment Principles document, which is reviewed periodically to ensure that the principles contained therein remained appropriate to the requirements of the Common Good Funds.
The report advised that the Statement of Investment Principles had last been reviewed in December 2018 and was due for review. It was proposed that minor changes be made to the Statement, as detailed in the report
In response to a question in relation to the Climate Emergency, the Head of Finance advised that there were ethical investments contained within the current restrictions and that he could request that the Investment Manager submit options to the next meeting of the Board. It would then be for the Board to determine such options.
In response to a question regarding income achieved above the target rate being re-invested, the Head of Finance advised that this would be kept under review.
DECIDED:
(a) That the Statement of Investment Principles appended to the report be approved;
(b) That the that the Investment Manager submit to the next meeting of the Board investment options compatible with Council policies in relation to tackling the Climate Emergency; and
(c) That the Director of Finance & Resources keep under review possibility of re-investment of income received above the income target.