A report by the Director of Pensions provided Members with an updated Investment Strategy Statement (ISS) which had been revised following legislative and policy developments, changes to guidance and the approval, in September, of the Northern Local Government Pension Scheme (LGPS) Responsible Investment (RI) policy.

Members were advised and reminded how, In September’s report to this Committee regarding the Northern LGPS Responsible Investment policy, officers undertook to revise Merseyside Pension Fund’s (MPF) Investment Strategy Statement and bring a report on it to a future Committee. Members were informed how Regulation 7(1) requires an administering authority to formulate an investment strategy which must be in accordance with guidance issued by the Secretary of State. Requirements to this were set out within the report. Members heard how the Investment Strategy Statement must also set out the maximum percentage of the total value of all investments of fund money that it will invest in particular investments or classes of investment.

Under Regulation 7(6) and (7), the statements must be published by 1st April 2017 and then kept under review and revised from time to time and at least every three years Legislative and policy developments in respect of Stewardship and Climate risk, in particular.

Members were then informed how the ISS is intended to set out the high-level principles that govern the Fund’s investment strategy. Those principles influence or are developed in some of the Fund’s policies and procedures such as the Funding Strategy Statement, NLGPS RI policy and internal Compliance Manual where officers in conjunction with the Fund’s advisors put them into effect. In the area of climate risk, for example, officers are currently working with advisors to develop short and medium term milestones in the alignment of the Fund’s investment strategy with the Net Zero Paris goals.

It was reported how the implementation, monitoring and reporting of outcomes is to the quarterly Investment Monitoring Working Parties. It is proposed that this is enhanced in respect of the RI policy so that the NLGPS RI reports are included in addition to the LAPFF updates and details of engagements specific to MPF’s investments. Information on communications from stakeholders and scheme

The Chair of the Committee thanked the Director of Pensions for engagement with Members on the updating of the Investment Strategy Statement.

In response to questions by Members including those asked at the beginning of the meeting by Councillor Jo Bird, Members were advised how the investment strategy updating process id in order for the funds to best engage in the process in order to promote good governance.

It was moved by Councillor Cleary and seconded by Councillor Jones and

Resolved: -That officers bring a report to the next meeting of Pensions Committee which addresses the points raised and related matters at agenda item 5.3 at the committee meeting of 29 November 2021, thereby allowing the committee to determine what, if any, adjustments in investments might be recommended to officers.