Agenda and minutes
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Contact: Julie Dean Tel: (01865) 815322; E-Mail: julie.dean@oxfordshire.gov.uk
Note: Informal
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Election of Chairman and Deputy Chairman for the duration of the meeting Minutes: Councillor Stewart Lilly was elected Chairman and Councillor Patrick Greene was elected Deputy Chairman for the duration of the meeting. |
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Apologies for Absence and Temporary Appointments Minutes: There were no apologies for absence or temporary appointments. Paul Gerrish, Beneficiaries Observer submitted his apologies. |
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Declarations of Interest - see guidance note Minutes: Councillors Fooks, Lilly, Owen and Patterson each declared personal Interests as members of the Pension Fund Scheme under the provisions of Section 18 of the Local Government & Housing Act 1989.
Councillors Hards declared a pecuniary interest in Agenda Item 17 on account of his spouse being Chair of the Trustees of the South and Vale Citizen’s Advice Bureau. He did not participate in any discussion on the matter and withdrew from the meeting for the duration of the item.
Councillor Dhesi declared a pecuniary interest in Agenda Item 17 on account of her position as a Trustee of Banbury Citizens Advice Bureau. She did not participate in any discussion on the matter and withdrew from the meeting for the duration of the item. |
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Minutes: The Minutes of the last meeting were approved and signed as a correct record subject to the omission of the £ sign before ‘20m euros’ in paragraph 1 of Minute 11/13. |
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Petitions and Public Address Minutes: There were no petitions submitted or requests to address the meeting. |
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Overview of Past and Current Investment Position 10:15
Tables 1 to 10 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 March 2013 using the following tables:
In addition to the above tables, the performance of the Fund Managers over the past 18 months has been produced graphically as follows:
Graph 1 – Value of Assets Graph 2 - Alliance Bernstein Graph 3 - Baillie Gifford Graph 4 – Legal & General Graphs 5 and 6 – UBS
The Committee is RECOMMENDED to receive the tables and graphs, and that the information contained in them be borne in mind, insofar as they relate to items 9, 10 and 11 on the agenda. Minutes: Mr Davies reported that the first quarter of 2013 had been unprecedented in that it had seen an asset appreciation of £133m. This was made up of £48m in UK equities, £59 m in overseas equities, £17m in private equities, £8m in bonds and £1m in Hedge Funds.
RESOLVED: to receive the tables and graphs; and that the information contained in them be borne in mind insofar as they related to items 9,10 and 11 on the agenda. |
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EXEMPT ITEMS The Committee is RECOMMENDED that the public be excluded for the duration of items 7, 8, 9, 10, 11, 12 and 13 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 item 11, there are no reports circulated with the Agenda. Any exempt information will be reported orally. Minutes: RESOLVED: that the public be excluded for the duration of items 7,8, 9,10,11,12, 13 and 14 in the Agenda since it was likely that if they were present during those items there would be disclosure of exempt information as defined in Part 1 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 was considered that, in all circumstances of each case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information.
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Overview and Outlook for Investment Markets 10:30
Report of the Independent Financial Adviser (PF8).
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, tables and graphs, 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. Minutes: The Committee considered a report of the Independent Financial Adviser (PF8) which set out an overview of the current and future investment scene and market developments across various regions and sectors. Members asked a number of questions, to which the Independent Financial Adviser responded. The public were 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. RESOLVED: To receive the report, tables and graphs and the oral report of the Independent Financial Adviser and to bear his conclusions in mind when considering the Fund Manager’s reports.
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UBS 10:40
(1) The Independent Financial Adviser will report orally on the performance and strategy of UBS drawing on the tables at Agenda Items 6 and 8.
(2) The representatives ( Mr. M. Gordon and Ms Y. Thomas) 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 March 2013;
(b) give their views on the future investment scene.
In support of the above is their report for the period to 31 March 2013.
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. Minutes: The representatives, Mr M. Gordon and Mr. N. Irish reported on and reviewed the present investments in relation to their part of the Fund and their strategy against the background of the current investment scene for the period which ended 31 March 2013. The public were 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. RESOLVED: to note the main issues arising from the report.
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Legal & General 11:20
(1) The Independent Financial Adviser will report orally on the performance and strategy of Legal & General drawing on the tables at Agenda Items 6 and 8.
(2) The representative (Mr J. Cloke) 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 March 2013;
(b) give their views on the future investment scene.
In support of the above is their report for the period to 31 March 2013.
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. Minutes: The representatives, Mr J. Cloke and Mr. N. Hodges reported on and reviewed the present investments in relation to their part of the Fund and their strategy against the background of the current investment scene for the period which ended 31 March 2013. The public were 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. RESOLVED: to note the main issues arising from the report.
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Report of Main Issues arising from Reports of the Fund Managers not represented at this meeting 12:00
The Independent Financial Adviser will report on the officer meetings with Baillie Gifford and Wellington (PF11) in conjunction with information contained in the tables (Agenda Item 6), as well as update the Committee on any other issues relating to the Fund Managers not present.
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. Additional documents:
Minutes: The Committee considered two notes of meetings which took place since the last meeting (PF11) with representatives from Baillie Gifford and Wellington. The public were 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. RESOLVED: to note the reports.
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Summary by the Independent Financial Adviser 12:05
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. Minutes: The Independent Financial Adviser reported that no summary was required. |
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Future Management of the LGPS 12:10
This report (PF13) provides the findings of a review undertaken by the Heads of Pensions for the Buckinghamshire, Oxfordshire, and Berkshire LGPS Funds. The review follows the findings from Lord Hutton's Commission report on Public Sector Pensions which questioned the efficiency and effectiveness of continuing to operate with 89 separate LGPS Funds across England & Wales. The report will form part of an overall report to Cabinet on 16 July 2013 which is looking at the future arrangements for all support services within Oxfordshire Customer Services, and this Committee is invited to pass comments onto the Cabinet in respect of the proposed way forwards for the management of the LGPS scheme in Oxfordshire.
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 disclosure at this time would prejudice the Authority’s future negotiations with Fund Managers, and other contractors to the Fund and the delivery of the Authority’s fiduciary duties and future savings to the employers and Council Tax payers.
The Committee is RECOMMENDED to consider the above report and the detailed annex produced by the Head of Pensions at Buckinghamshire, Oxfordshire and Berkshire, and offer any comments to the Cabinet who will consider the proposal at their meeting on 16 July 2013.
Additional documents:
Minutes: The Committee considered the exempt report and AGREED to offer their comments to Cabinet on 16 July 2013. |
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Custodian Procurement 12:30
The report (PF14) will inform the Committee of the results of the recent tender exercise for the appointment of a new global custodian.
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 Pension Fund Committee is RECOMMENDED to note the report.
Minutes: The Committee had before them a report (PF14) which gave the results of the recent tender exercise for the appointment of a new global custodian.
The public were 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 AGREED to note the report. |
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The New Look LGPS (2014) Update 12:35
The report (PF15) updates the Committee on progress towards implementing the New Look LGPS from April 2014. It includes information on the recent consultation on Councillor membership of the LGPS.
The Committee is RECOMMENDED to note the report.
Additional documents: Minutes: The Committee had before them a report (PF15) which gave an update on progress towards implementing the New Look LGPS from April 2014. The report also included information on the recent consultation on Councillor membership of the LGPS.
The Committee confirmed the importance of the right to membership of the LGPS for Councillors, particularly enabling them to afford to offer the time required to fully undertake their responsibilities; and asked that the Council included such comments in its final response.
The Committee AGREED to note the report and asked that their comments be passed on for inclusion in the Council’s response on the consultation on Councillor membership of the LGPS. |
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Review of Pension Fund Policies 12.50
The report (PF16) provides an opportunity for the Committee to undertake a formal review of its major policy documents, held in line with the LGPS Regulations. The last such comprehensive review of policies was in June 2012, and the report provides an update of any key changes since that date.
The Committee is RECOMMENDED to approve the revised policy documents as set out in Annexes 1-6 to this report, noting the main changes in the documents as discussed above.
Additional documents:
Minutes: The Committee undertook a formal review of the major Pension Fund policies, in line with the LGPS Regulations. The last such comprehensive review of policies took place in June 2012. The report (PF16) provided an update on the key changes since that date.
The Committee AGREED (subject to endorsement at the next meeting on 6 September 2013) the revised policy documents as set out in Annexes 1 – 6 of the report, noting the main changes. |
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Oxfordshire County Council Pension Fund - Employer Update 13:00
The report (PF17) seeks Committee approval for any new admissions to the Fund. It also updates members on the status of any current employer which impacts on future Scheme membership.
The Committee is RECOMMENDED to:
a) note the progress of previously approved applications for admitted body status; b) approve the application for admitted body status by Oxfordshire South and Vale Citizen’s Advice Bureau; and c) note the cessation of scheme employers.
Minutes: The Committee considered a report (PF17) which sought approval for applications for new admissions to the Fund. The report also updated members on the status of any current employer that impacted on future Scheme membership admitted body status
The Committee AGREED the following (for endorsement at the 6 September 2013 meeting): to
(a) note the progress of previously approved applications for admitted body status - noting also that Pabulum had withdrawn from theirs; (b) approve the application for admitted body status by Oxfordshire South and Vale Citizen’s Advice Bureau; and (c) note the cessation of scheme employers.
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13:05
The report (PF18) will provide the Committee with summary details of the amounts written off in the last quarter in accordance with the Financial Regulations of the Fund.
The Committee is RECOMMENDED to note the report.
Minutes: The Committee had before them a report (PF18) which provided summary details of the amounts written off in the last quarter, in accordance with the Financial Regulations of the Fund.
RESOLVED: to note the report. |