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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. The requirements were formalised in a Statement of Investment Principles document, which was 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 November 2019 and was due for review. It was proposed that no changes be made to the existing Statement.
The Head of Finance referred to discussions which had taken place at the last meeting in relation to a potential amendment to the Investment Principles to reflect the decision of the Council to support Climate Emergency measures. He indicated that an appendix had been added to Statement on a suggested route for the Board making any changes to the Principles. Any decisions in this regard would require to be taken in the full understanding by the Board of what the potential investment return and investment strategy implications may be.
The Head of Finance and the Senior Investment Analyst, Hymans Robertson LLP were then heard in answer to questions from members on the report.
DECIDED:
(a) That the Statement of Investment Principles attached to this report be approved;
(b) That the attached “pathway” briefing note prepared by Aberdeen Standard Capital Limited, be approved; and
(c) That it be noted that any proposed change to the investing approach would require to be considered and agreed at a subsequent Investment Review Board meeting, and that such a change in approach would require to be reflected in an updated Statement of Investment Principles to be approved by Members.