Meeting documents
Pension Fund Committee
Wednesday, 27 August 2008
To Members of the Pension Fund Committee
|
Alan Bryden |
Neville Harris |
Dermot Roaf |
Don Seale |
Bill Service |
|
Co-opted Members:
Richard Langridge |
Bob Price |
|
Notes:
· A lunch will be provided
· Date of next meeting: 26 November 2008
If you have any special requirements (such as a large print version of these papers or special access facilities) please contact the officer named on the front page, but please give as much notice as possible before the meeting. |
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 28 May 2008 (PF3) and to receive for information any matters arising on them.
4. Petitions and Public Address
5. Overview of Past and Current Investment Position
10:05 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 30 June 2008 using the following tables:
Table 1 - provides a consolidated valuation of the Pension Fund at 30 June 2008;
Tables 2 to 4 - provide details of the individual manager’s 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 30 June 2008.
(Tables - download as . xls file)
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 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, 14E and 15E 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 8E and 9E, there are no reports circulated with the Agenda. Any exempt information will be reported orally.
6.E WM Company Presentation on the Pension Fund’s Investment
Performance for the
Twelve Months ended 31 March 2008
10:20
The WM Company will review the Oxfordshire Pension Fund’s investment performance for the twelve months ended 31 March 2008. The presentation will compare Oxfordshire’s performance against its own customised benchmark and against the WM Local Authority Pension Fund Universe. The presentation will also explore a number of other issues including the impact of currency on investments and local authority pension funds continuing to invest in equities.
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.
7.E Overview and Outlook for Investment Markets
11:05 Report of the Independent Financial Adviser (PF7E) (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.
8.E Report of Main Issues arising from Reports of the
Fund Managers not represented at this meeting
11:20 The Independent Financial Adviser will report orally on the main issues arising from the reports from Alliance Bernstein, Legal & General and UBS 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.
9.E Baillie Gifford
11:30 (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 7E.
(2) The representatives (Mr L Robb and Mr G Callahan) 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 30 June 2008;
(b) give their views on the future investment scene.
In support of the above is their report for the period to 30 June 2008.
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
12:00 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 Baillie Gifford – Supplementary Review
12:05 Report of the Independent Financial Adviser (PF11E)
In December 2007, the Committee agreed that the investment performance of Baillie Gifford should be reviewed in six months. The review has now been undertaken and the report sets out the outcome.
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 Hedge Funds - Review
12:15 Report of the Independent Financial Adviser (PF12E)
The Committee requested a review of the performance of hedge funds. The report concludes that these funds have shown satisfactory performance against the benchmark since inception and in the volatile markets of the past year they have provided some stability and have added value.
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 Tactical Asset Allocation Fund - Review
12:25 Report of the Independent Financial Adviser (PF13E)
In December 2007 the Committee requested that the performance of the Tactical Asset Allocation Fund should be formally reviewed in six months’ time. The review has now been undertaken and the report sets out the outcome.
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 Strategic Allocation of Assets – Annual Review
12:40 Joint report of the Assistant Chief Executive and Chief Finance Officer and the Independent Financial Adviser (PF14E)
The report reviews the strategic allocation of the Fund's investments. It considers in particular the contribution that private equity has made to the performance of the Fund, proposing that the allocation to private equity should be increased in the near future.
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 provider involved.
15.E Appointment of a Passive
Manager
12:55
Report of the Assistant Chief Executive and Chief Finance Officer (PF15E).
The report sets out the outcome from the process of appointing a Passive Manager
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 provider involved.
LUNCH
ITEMS FOLLOWING THE RE-ADMISSION OF THE PRESS AND PUBLIC
16. Draft Annual Report and
Accounts for 2007/08
14:00
Report of the Assistant Chief Executive and Chief Finance Officer (PF16) (download as . doc file)
The draft Annual Report and Accounts for 2007/08 show the final accounts for the Pension Fund for the year ended 31 March 2008 and provide details on how the Fund operates, including sections on membership and investments. The Report also includes the Statement of Investment Principles. The final report will be brought to the Committee in November.
The Committee is RECOMMENDED to receive the draft report and accounts for 2007/08.
17. Pension Fund Investment and Administration Expenses
Outturn Report for the year ended 31 March 2008
14:05
Report of the Assistant Chief Executive and Chief Finance Officer (PF17)
The report compares the 2007/08 budget with the outturn for the year. Investment Management underspent the budget by £290,000, mainly as a consequence of lower fees for Fund Management (£141,000) and Custody (£65,000) plus increased income from stock lending (£67,000). There was also an underspend of £20,000 on administration of the scheme.
The Committee is RECOMMENDED to receive the report and to note the out-turn position.
18. Admission Agreements
14:10
Report of the Assistant Chief Executive and Chief Finance Officer (PF18)
The report updates the Committee on admissions/new admissions sought.
The Committee is RECOMMENDED to:
(a) Oxfordshire Connexions
(i) approve the application from Oxfordshire Connexions subject to their agreeing to the terms of the Admission Agreements; and
(ii) waive the need to put a bond in place;
(b) note the change of status of Peers School;
(c) note the completion of the Barnardo’s admission.
19. Payment of
Child's Pension
14:15
Report of the Assistant Chief Executive and Chief Finance Officer (PF19)
The report asks the Committee to decide on whether payment of a child’s pension should continue.
The Committee is RECOMMENDED to agree that no further payments should be made in respect of this child’s pension.
20. Payment of Death
Benefit
14:20
Report of the Assistant Chief Executive and Chief Finance Officer (PF20)
The report seeks Committee approval to payment being made to one beneficiary in view of the failure to trace the second beneficiary.
The Committee is RECOMMENDED to confirm that payment of the death benefit be made to the deceased scheme member’s daughter.
21. The Local Government Pension Scheme (Amendment)
Regulations 2008
14:25
Report of the Assistant Chief Executive and Chief Finance Officer (PF21)
The report updates members on changes to local government pension scheme Regulations.
The Committee is asked to note the report.
22. Annual Pension Forum
14:30
The Assistant Chief Executive and Chief Finance Officer will report orally on any issues arising from the last Pension Forum held on 4 December 2007. The next Forum will be held on 5 December 2008.
The Committee is RECOMMENDED to note the report.
23. Corporate Governance and
Socially Responsible Investment
14:35
The Assistant Chief Executive and Chief Finance Officer 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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