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Meeting Details

Investment Review Board
21 Jun 2022 - 09:30 to 11:30
Occurred
  • Documents
  • Attendance
  • Visitors
  • Declarations of Interests

Documents

Agenda

Agenda
Notification
Membership Section
Standard Items
Recording of Meeting
This meeting will be rcorded for subsequent broadcast via the Council's internet site. If you have any queries regarding this please contact Committee Services on 0141 618 7103. To find the recording please follow the link which will be attachewdto this agenda once the meeting has concluded.
Prior to the commencement of the meeting, the Convener intimated that this meeting of the Policy Board would be recorded and that the recording would be available to watch on the Council’s website.
Apologies
Apologies from members.
Councillors J Cameron and McGonigle.
Declarations of Interest
Members are asked to declare an interest in any item(s) on the agenda and to provide a brief explanation of the nature of the interest.
There were no declarations of interest intimated prior to the commencement of the meeting.
Items Of Business
Minute of previous meeting held on 17 November 2021. 
1
There was submitted the Minute of the meeting of the Investment Review Board held on 17 November 2021.

DECIDED: That the Minute be approved.
Presentation by Head of Finance and Business Serivces.
2
There was submitted a presentation by the Head of Finance & Business Services  relative to the operation of the Investment Review Board  and the management of the Common Good Funds.

The presentation provided information on the frequency of Board meetings; details of the three funds, namely Renfrew, Paisley and Johnstone Common Good funds; investment principles; the investment manager and investment adviser; and governance and reporting.

The Head of Finance & Business Services was then heard in answer to questions from members on the content of the presentation.

DECIDED: That the presentation be noted.
Briefing by Kameel Kapitan, Investment Consultant, Hymans Robertson LLP, regarding the Renfrewshire investment portfolios and the current economic situation (NOT AVAILABLE, copy to follow).
3
There was submitted a presentation and briefing by K Kapitan, Hymans Robertson LLP, regarding the Renfrewshire investment portfolios and the current economic situation.

Mr Kapitan made reference to themes for 2020 and 2021; the ongoing pandemic and resultant market volatility. The four main themes identified were soaring inflation; the conflict in Ukraine; hawkish banking policy;  and the ongoing pandemic. 

He indicated that inflation had increased dramatically, with a rate of 9% in April 2022 expected to rise to 11% or 12% before the end of 2022. This rise in inflation was reflected in similar rises in Europe and the United States of America. Rising oil and gas prises had continued to rise in 2022, partially as a result of the conflict in Ukraine together with commodities including wheat, aluminium and copper from those markets.

In terms of market returns, the presentation highlighted a comparison between 2021 and 2022 on the key asset classes broken down by category. In the UK, the energy markets had been more resilient as a result in the rise in oil and gas.

The presentation also referred to UK inflation by item breakdown referring to a “basket of goods” used to monitor rises in inflation. In August 2021 inflation had been approximately 3.2% In April 2021, with 23% of the items in the basket above the inflation rate. By April this had risen to 63% of items. 

K Kapital provided information on central bank policy; bond markets, which had had one of the worst starts to the year in decades; credit markets; and equity markets including value and growth stocks.

DECIDED: That the presentation be noted.
Report by the Director of Finance and Resources relative to the performance of the Paisley and Renfrew Common Good Fund investments, including a presentation and report from Hymans Robertson LLP regarding the key issues to be presented by Kameel Kapitan, Investment Consultant, Hymans Robertson LLP. 

Subsequent to this, Gair Brisbane, Head of Charities (Scotland), abrdn (formerly Aberdeen Standard Capital Limited), will deliver a presentation relative to the performance of the Paisley and Renfrew Common Good Fund investments.
 
4
There was submitted a report by the Director of Finance and Resources together with a presentation by K Kapitan from Hymans Robertson LLP, relative to the Paisley and Renfrew Common Goof Funds, a review of investment income and the key issues pertaining thereto. G Brisbane, Head of Charities (Scotland) abrdn (formerly Aberdeen Standard Capital Limited) also provided a presentation relative to the Paisley and Renfrew Common Good fund investments performance.

The presentations referred to a review of the Investment Managers’ performance for the six months to 31 March 2022; the market background; valuation and performance of the funds;  a commentary on the performance of the funds including concerns over central bank tightening  and exposure to bonds; performance against targets; asset allocation; and an explanation of performance calculations detailed in appendix 4 to the presentation.

DECIDED: That the report and presentations be noted.

Attendance

Name
No other member attendance information has been recorded for the meeting.
NameReason for Sending Apology
Councillor Jacqueline Cameron 
Councillor David McGonigle 
NameReason for Absence
No absentee information has been recorded for the meeting.

Declarations of Interests

Member NameItem Ref.DetailsNature of DeclarationAction
No declarations of interest have been entered for this meeting.

Visitors

Visitor Information is not yet available for this meeting