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To
Members of the Pension Fund Committee
Notice
of a Meeting of the
Pension
Fund Committee
Friday
23 February 2007 at 10.15 am*
County
Hall, Oxford
* PLEASE NOTE REVISED START TIME
Membership
Chairman – Councillor Rodney Rose
Deputy Chairman – Councillor David
Harvey
Councillors:
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Bill Bradshaw
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Neville Harris
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Jim Moley
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Bill Service
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David Wilmshurst
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Co-opted Members:
Notes:
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A lunch will be provided
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Date of next meeting:
25 May 2007
AGENDA
1.
Apologies
for Absence and Temporary Appointments
2.
Declarations of Interest – see guidance note
3.
Minutes
To approve the minutes of the meeting held
on 24 November 2006 (PF3)
and to receive for information any matters arising
therefrom.
4.
Petitions and Public Address
5.
Overview of Past and Current Investment Position
10.20 Tables 1 to 7
are compiled from the custodian's records. The custodian is the Pension
Fund's prime record keeper. He accrues for dividends and recoverable
overseas tax within his valuation figures and may also use different exchange
rates and pricing sources compared with the fund managers. The custodian
also treats dividend scrip issues as purchases which the fund managers
may not do. This may mean that there are minor differences between the
tabled figures and those supplied by the managers.
The Independent Financial Adviser will review
the investment activity during the past quarter and present an overview
of the Fund’s position as at 31 December 2006 using the following tables:
(Tables 1 - 10 - download as .xls file)
Table 1 - provides a consolidated
valuation of the Pension Fund at 31 December 2006;
Tables 2 to 4 - provide details of the
individual managers’ asset allocations and compare these against their
benchmark allocations;
Table 5 - shows net investment/disinvestments
during the quarter;
Tables 6 to 7 - provide details on the
Pension Fund’s Private Equity;
Tables 8 to 10 - provide investment performance for the consolidated Pension
Fund and for the four Managers for the quarter ended 31 December 2006.
The Committee is RECOMMENDED to receive
the tables, and that the information contained in them be borne in mind,
insofar as they relate to items 7E, 8E and 9E on the agenda.
EXEMPT
ITEMS
The Committee is RECOMMENDED that the public be excluded for the duration
of items 6E, 7E, 8E, 9E, 10E, 11E, 12E, 13E and 14E in the Agenda since
it is likely that if they were present during those items there would
be disclosure of exempt information as defined in Part I of Schedule 12A
to the Local Government Act 1972 (as amended) and
specified in relation to the respective items in the Agenda and since
it is considered that, in all the circumstances of each case, the public
interest in maintaining the exemption outweighs the public interest in
disclosing the information.
THE REPORTS RELATING
TO THE EXEMPT ITEMS HAVE NOT
BEEN MADE PUBLIC AND SHOULD BE
REGARDED AS STRICTLY PRIVATE TO MEMBERS
AND OFFICERS ENTITLED TO RECEIVE THEM.
NOTE: In the case of items 7E, 8E and
9E there are no reports circulated with the Agenda. Any exempt information
will be reported orally.
THE QUARTERLY
REPORTS FROM THE FUND MANAGERS RELATING TO THE EXEMPT ITEMS AT 7E, 8E
AND 9E AND ANY INFORMATION TO BE REPORTED ORALLY HAVE NOT BEEN MADE PUBLIC
AND SHOULD BE REGARDED UNTIL AFTER 23 MAY 2007 AS STRICTLY PRIVATE TO
MEMBERS AND OFFICERS ENTITLED TO RECEIVE SUCH REPORTS AND INFORMATION.
6.E
Overview and Outlook for Investment Markets
10:40 Report of the Independent Financial
Adviser (PF6E) (download as .doc
file).
The report sets out an overview of the current
and future investment scene and market developments across various regions
and sectors. The report itself does not contain exempt information and
is available to the public. The Independent Financial Adviser will also
report orally and any information reported orally will be exempt information.
The public should be
excluded during this item because its discussion in public would be likely
to lead to the disclosure to members of the public present of information
in the following prescribed category:
3. Information
relating to the financial or business affairs of any particular person
(including the authority holding that information)
and since it is considered that, in all
the circumstances of the case, the public interest in maintaining the
exemption outweighs the public interest in disclosing the information,
in that such disclosure would prejudice the trading activities of the fund managers
involved and would prejudice the position of the authority's investments
in funding the Pension Fund.
The Committee is RECOMMENDED to receive the report and
tables, to receive the oral report, to consider any further action arising
on them and to bear the Independent Financial Adviser’s conclusions in
mind when considering the Fund Managers’ reports.
7.E
Report of Main Issues
arising from Reports of the Fund Managers not represented at this meeting
10:50 The Independent Financial Adviser
will report orally on the main issues arising from the reports from Alliance
Bernstein and Legal & General in conjunction with information contained
in the tables (Agenda item 5).
The public should be
excluded during this item because its discussion in public would be likely
to lead to the disclosure to members of the public present of information
in the following prescribed category:
3. Information
relating to the financial or business affairs of any particular person
(including the authority holding that information)
and since it is considered that, in all
the circumstances of the case, the public interest in maintaining the
exemption outweighs the public interest in disclosing the information,
in that such disclosure would prejudice the trading activities of the fund managers
involved and would prejudice the position of the authority's investments
in funding the Pension Fund.
The Committee is RECOMMENDED to note
the main issues arising from the reports and to take any necessary action,
if required.
8.E
UBS Global Asset Management
10:55 (1) The Independent Financial
Adviser will report orally on the performance and strategy of UBS Global
Asset Management drawing on the tables at Agenda Items 5 and 6E.
(2) The representatives (Mr K Barker and Mr M Stemp)
of the Fund Manager will:
(a) report and review the present investments of their
part of the Fund and their strategy against the background of the current
investment scene for the period which ended on 31 December 2006;
(b) report on whether or not voting rights have been
exercised and if so details of the rights exercised;
(c) give their views on the future
investment scene.
In support of the above is their report
for the period to 31 December 2006.
At the end of the presentation, members
are invited to question and comment and the Fund Managers to respond.
The public should be
excluded during this item because its discussion in public would be likely
to lead to the disclosure to members of the public present of information
in the following prescribed category:
3. Information
relating to the financial or business affairs of any particular person
(including the authority holding that information)
and since it is considered that, in all
the circumstances of the case, the public interest in maintaining the
exemption outweighs the public interest in disclosing the information,
in that such disclosure would
prejudice the trading activities of the fund managers involved and would
prejudice the position of the authority's investments in funding the Pension
Fund.
The Committee is RECOMMENDED to note
the main issues arising from the presentation and to take any necessary
action, if required.
9.E
Baillie Gifford
11:20 (1) The Independent Financial Adviser will
report orally on the performance and strategy of Baillie Gifford drawing
on the tables at Agenda Items 5 and 6E.
(2) The representatives (Mr L Robb and Mr I McCombie)
of the Fund Manager will:
(a) report and review the present investments of their
part of the Fund and their strategy against the background of the current
investment scene for the period which ended on 31 December 2006;
(b) report on whether or not voting rights have been
exercised and if so details of the rights exercised;
(c)
give their views on the future investment scene.
In support of the above is their report for the period to 31 December
2006.
At the end of
the presentation, members are invited to question and comment and the
Fund Managers to respond.
The public should be
excluded during this item because its discussion in public would be likely
to lead to the disclosure to members of the public present of information
in the following prescribed category:
3. Information
relating to the financial or business affairs of any particular person
(including the authority holding that information)
and since it is considered that, in all
the circumstances of the case, the public interest in maintaining the
exemption outweighs the public interest in disclosing the information,
in that such disclosure would prejudice the trading activities of the fund managers
involved and would prejudice the position of the authority's investments
in funding the Pension Fund.
The Committee is RECOMMENDED to note
the main issues arising from the presentation and to take any necessary
action, if required.
10.E
Summary by the Independent
Financial Adviser
11:45 The Independent
Financial Adviser will, if necessary, summarise the foregoing reports
of the Fund Managers and answer any questions from members.
The public should be
excluded during this item because its discussion in public would be likely
to lead to the disclosure to members of the public present of information
in the following prescribed category:
3. Information
relating to the financial or business affairs of any particular person
(including the authority holding that information)
and since it is considered that, in all
the circumstances of the case, the public interest in maintaining the
exemption outweighs the public interest in disclosing the information,
in that such disclosure would prejudice the trading activities of the fund managers
involved and would prejudice the position of the authority's investments
in funding the Pension Fund.
11.E
Review of Hedge Funds
11:50 Report of the Head of Finance &
Procurement (PF11E)
The Pension Fund
first invested in hedge funds in August 2003. The review considers investment
performance, management fees, levels of transparency and reporting standards.
The public should be
excluded during this item because its discussion in public would be likely
to lead to the disclosure to members of the public present of information
in the following prescribed category:
3. Information
relating to the financial or business affairs of any particular person
(including the authority holding that information)
and
since it is considered that, in all the circumstances of the case, the
public interest in maintaining the exemption outweighs the public interest
in disclosing the information, in that such
disclosure would prejudice the trading activities of the fund managers
involved and would prejudice the position of the authority's investments
in funding the Pension Fund.
12.E
Venture Capital Investment
12:00
Report of the Head of Finance & Procurement (PF12E)
The report briefly
reviews Oxford Technology Venture Capital Trusts 3 and 4 and explains
why the Oxford Technology is looking to launch a fifth fund through a
different vehicle called an Enterprise Capital Fund (ECF). It explains
what an ECF is and recommends that the Pension Fund invests in this fund
if it is launched.
The public should be
excluded during this item because its discussion in public would be likely
to lead to the disclosure to members of the public present of information
in the following prescribed category:
3. Information
relating to the financial or business affairs of any particular person
(including the authority holding that information)
and
since it is considered that, in all the circumstances of the case, the
public interest in maintaining the exemption outweighs the public interest
in disclosing the information, in that such
disclosure would prejudice the trading activities of the fund managers
involved and would prejudice the position of the authority's investments
in funding the Pension Fund.
13.E
Confidentiality of Investment Managers’ Reports
12:10
Joint report by the Head of Democratic Services and the Head of
Finance & Procurement (PF13E).
The report reviews the
decision by the former Investment Sub-Committee that the quarterly investment
reports should be made available for public inspection at County Hall
after a period of three months following the date of the relevant meeting.
The public should be
excluded during this item because its discussion in public would be likely
to lead to the disclosure to members of the public present of information
in the following prescribed category:
3. Information
relating to the financial or business affairs of any particular person
(including the authority holding that information)
and since it is considered that, in all
the circumstances of the case, the public interest in maintaining the
exemption outweighs the public interest in disclosing the information,
in that such disclosure would
prejudice the trading activities of the fund managers involved and would
prejudice the position of the authority's investments in funding the Pension
Fund.
14.E
Comprehensive Investment
Management Review – Appointment of Consultant
12:15 Report of the Head of Finance
& Procurement (PF14E)
This report discusses the appointment of a
consultant to assist with the comprehensive investment management review.
The public should be
excluded during this item because its discussion in public would be likely
to lead to the disclosure to members of the public present of information
in the following prescribed category:
3. Information
relating to the financial or business affairs of any particular person
(including the authority holding that information)
and since it is considered that, in all
the circumstances of the case, the public interest in maintaining the
exemption outweighs the public interest in that the Council would be prejudiced
by publishing prospective contract prices or terms and would prejudice
the position of the authority in that process.
ITEMS FOLLOWING THE RE-ADMISSION OF THE PRESS AND PUBLIC
15.
Annual Review of the Pension Fund's Strategic Asset Allocation
12:20
Report of the Head of Finance & Procurement (PF15)
The review summarises
the strategic asset allocation changes made by the Pension Fund in August
2005.
The Committee is
RECOMMENDED that the strategic asset allocation incorporated in the Oxfordshire
Pension Fund customised benchmark should remain unchanged for the time
being.
16.
Pension Fund Business Plan and Budget for 2007/08
12:25
Report of the Head of Finance & Procurement (PF16)
The
report sets out the annual business plan for 2007/2008 financial year
and also includes a member training programme and an investment management/scheme
administration budget.
The Committee is RECOMMENDED to:
(a)
approve the Oxfordshire Pension Fund Business Plan,
as set out in Annex 1 to the report, for 2007/08;
(b) approve the Oxfordshire Pension Fund’s Investment
Management and Scheme Administration Budget, as set out in Annex 2 in
the report, for 2007/08.
17.
The Local Government
Pension Scheme (Benefits, Membership and Contributions) Regulations 2007
12:35 Report of the Head of Finance & Procurement (PF17)
The
report sets out the key issues and includes a draft response for submission
to the Office of Communities and Local Government (CLG).
The Committee is
RECOMMENDED to note the content of the report, and to agree, subject to
any amendments proposed, the draft response set out in Annex 1 to the
report for submission to CLG.
18.
CIPFA Local Authority Pension Fund Investment Statistics
12:45 Report of the Head of Finance & Procurement (PF18)
The report compares the
Pension Fund's asset allocation with those of other local authority and
private sector pension funds. It also compares Oxfordshire's 3-, 5- and
10-year investment performance returns with those of other English County
Council pension funds. Finally, the report discusses whether the investment
returns achieved by Oxfordshire are meeting the Actuary's three year and
longer term investment return assumptions, which he made in the March
2004 Actuarial Valuation.
The Committee is recommended to receive
the report.
19.
Annual Pension Forum
12:50 Report
of the Head of Finance & Procurement (PF19)
The
report updates the Committee on the pension forum held in November 2006.
The Committee is recommended to note
the report.
20.
Corporate Governance and Socially Responsible Investment
12:55 The Head
of Finance & Procurement has nothing specific to report for this quarter but it should be noted
that all the managers have included pages within their valuation reports
which provide details on their voting at company AGMs, engagement with
companies and their involvement with other socially responsible initiatives.
The
Committee is recommended to note the report.
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