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Investment and Property Subcommittee Wednesday 29 June 2022 at 1.00pm
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Investment and Property Subcommittee Wednesday 29 June 2022 at 1.00pm
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Investment and Property Subcommittee
29 June 2022
Investment and Property Subcommittee Agenda
Meeting to be held in the Council Chamber
36 Water Street, Whangārei
on Wednesday 29 June 2022, commencing at 1.00pm
Recommendations contained in the agenda are NOT decisions of the meeting. Please refer to minutes for resolutions.
MEMBERSHIP OF THE Investment and Property Subcommittee
Chairperson, NRC Councillor, Rick Stolwerk
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Ex-Officio Penny Smart |
Councillor Justin Blaikie |
Councillor Colin Kitchen |
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Councillor Jack Craw |
Councillor Terry Archer |
Independent Consultant Jonathan Eriksen |
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Independent Advisor Stuart Henderson |
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KARAKIA / WHAKATAU
RĪMITI (ITEM) Page
1.0 Ngā Mahi Whakapai/Housekeeping
2.0 Ngā Whakapahā/apologies
3.0 Ngā Whakapuakanga/declarations of conflicts of interest
4.0 Ngā Whakaae Miniti (Confirmation of Minutes)
4.1 Confirmation of Minutes - 30 March 2022 3
5.1 Receipt of Action Sheet 8
6.1 Performance of Councils Externally Managed Funds to 31 May 2022 10
6.2 Northland Regional Council Environmental, Social, and Governance Targets 46
7.0 Kaupapa ā Roto (Business with the Public Excluded) 50
7.1 Confirmation of Confidential Minutes - 30 March 2022
7.2 Investment and withdrawal between fund managers
7.3 Update on Council’s Current Redevelopments and Other Property Matters
Investment and Property Subcommittee item: 4.1
29 June 2022
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TITLE: |
Confirmation of Minutes - 30 March 2022 |
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From: |
Judith Graham, Corporate Services P/A |
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Authorised by Group Manager/s: |
Bruce Howse, Pou Taumatua – Group Manager Corporate Services, on |
That the minutes of the Investment and Property Subcommittee meeting held on 30 March 2022 be confirmed as a true and correct record.
Attachments/Ngā tapirihanga
Attachment 1: Investment and Property
Subcommittee minutes - 30 March 2022 ⇩ 
29 June 2022
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TITLE: |
Receipt of Action Sheet |
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From: |
Judith Graham, Corporate Services P/A |
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Authorised by Group Manager/s: |
Bruce Howse, Pou Taumatua – Group Manager Corporate Services, on |
Whakarāpopototanga / Executive summary
The purpose of this report is to enable the meeting to receive the current action sheet.
That the action sheet be received.
Attachments/Ngā tapirihanga
Attachment 1: Investment and Property
Actionsheet ⇩ 
Investment and Property Subcommittee item: 6.1
29 June 2022
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TITLE: |
Performance of Councils Externally Managed Funds to 31 May 2022
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From: |
Vincent McColl, Financial Accountant |
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Authorised by Group Manager/s: |
Bruce Howse, Pou Taumatua – Group Manager Corporate Services, on 21 June 2022 |
Executive summary/Whakarāpopototanga
In the month of May 2022, councils Externally Managed Fund Portfolio incurred losses of ($877k). For the 11 months to the end of May, the portfolio has now recorded an overall loss of ($1.18M).
A summary of the returns and target objectives for the 11 months ending 31 May for councils 2 managed funds is presented below, with the supporting detail and fund performance for longer periods contained in the attached EriksensGlobal Report (Attachment 1).
Jonathan Eriksen from EriksensGlobal will be joining in via Zoom to answer any questions.
All monthly, quarterly and year to date (YTD) return percentages in this report and its attachment are not annualised.
That the report ‘Performance of Councils Externally Managed Funds to 31 May 2022 ‘
by Vincent McColl, Financial Accountant and dated 20 June 2022, be received.
Background/Tuhinga
Long Term Investment Fund (LTF)
At 31 May 2022, the LTF has an overall market value of $62.2m, comprising of funds attributable to:
· Economic Development of $17.3m,
· Property Reinvestment of $28.3m, and
· Regional Project Development of $14.4m.
· Rates collected for Debt repayment and Depreciation $2.2m
The LTF has performed as follows:
Short Term Investment Fund (STF)
At 31 May 2022, the STF has an overall market value of $12.6m, comprising funds attributable to:
· Working capital requirements of $6.4m
· Property Reinvestment of $5.1m.
· Investment and Growth reserve requirements of $1.1m
The STF has performed as follows:
Non-compliance with the Statement of Investment Policy and Objectives (SIPO)At 31 May 2022, the Long-Term Investment Fund allocation to the Global Equities was 4.6% which is slightly below its lower limit of 5%. This under allocation is due to reducing exposure to currently volatile global equities and in particular the recent $1M drawn down from T. Rowe Price Global Equity to help de-risk the portfolio. This discrepancy from SIPO will be remedied when global equities markets are expected to grow again.
At 31 May 2022, the Short-Term Investment Fund allocation to the Castle Point 5 Oceans was 22.9% which is slightly above its higher limit of 20%. Castle Point 5 Oceans is above its upper range due to reduced TDs. This exposure will be progressively reduced to meet cash flow requirements.
Attachments/Ngā tapirihanga
Attachment 1: Eriksens Global Report
May 2022 ⇩ 
29 June 2022
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TITLE: |
Northland Regional Council Environmental, Social, and Governance Targets |
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From: |
Judith Graham, Corporate Services P/A |
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Authorised by Group Manager/s: |
Bruce Howse, Pou Taumatua – Group Manager Corporate Services, on |
Report completed by EriksensGlobal
Attachment 1: Northland Regional
Council Environmental, Social, and Governance Targets Report ⇩
Investment and Property Subcommittee ITEM: 7.0
29 June 2022
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TITLE: |
Whakarāpopototanga / Executive Summary
The purpose of this report is to recommend that the public be excluded from the proceedings of this meeting to consider the confidential matters detailed below for the reasons given.
1. That the public be excluded from the proceedings of this meeting to consider confidential matters.
2. That the general subject of the matters to be considered whilst the public is excluded, the reasons for passing this resolution in relation to this matter, and the specific grounds under the Local Government Official Information and Meetings Act 1987 for the passing of this resolution, are as follows:
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Item No. |
Item Issue |
Reasons/Grounds |
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7.1 |
Confirmation of Confidential Minutes - 30 March 2022 |
The public conduct of the proceedings would be likely to result in disclosure of information, as stated in the open section of the meeting -. |
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7.2 |
Investment and withdrawal between fund managers |
The public conduct of the proceedings would be likely to result in disclosure of information, the withholding of which is necessary to enable council to carry out, without prejudice or disadvantage, commercial activities s7(2)(h). |
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7.3 |
Update on Council’s Current Redevelopments and Other Property Matters |
The public conduct of the proceedings would be likely to result in disclosure of information, the withholding of which is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information s7(2)(b)(ii), the withholding of which is necessary to enable council to carry out, without prejudice or disadvantage, commercial activities s7(2)(h) and the withholding of which is necessary to enable council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations) s7(2)(i). |
3. That the Independent Financial Advisors be permitted to stay during business with the public excluded.
Considerations
1. Options
Not applicable. This is an administrative procedure.
2. Significance and Engagement
This is a procedural matter required by law. Hence when assessed against council policy is deemed to be of low significance.
3. Policy and Legislative Compliance
The report complies with the provisions to exclude the public from the whole or any part of the proceedings of any meeting as detailed in sections 47 and 48 of the Local Government Official Information Act 1987.
4. Other Considerations
Being a purely administrative matter; Community Views, Māori Impact Statement, Financial Implications, and Implementation Issues are not applicable.
