Agenda and minutes

There were no apologies and temporary appointments.

Councillors Atkins, 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.

Councillor Fooks declared an interest  in Agenda Item 14 ‘Death Grant’ on the grounds that she is a fellow Oxfordshire Liberal Democrat Member to one of the  persons having an interest in receipt of the Death Grant in question, and had assisted in the process for his election as a Councillor. She therefore chose to take no part in the meeting and to withdraw from the meeting whilst it was being discussed.

District Councillor Jerry Patterson declared an interest in Agenda Item 14 on the grounds that he was a fellow Oxfordshire Liberal Democrat Member to one of the persons having an interest in receipt of the Death Grant in question.

To approve the minutes of the meeting held on  6 September 2013 (PF3) and to receive information arising from them.

There were no requests to submit a petition or to address the meeting.

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 30 September 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 - 3 – Baillie Gifford

Graph 4 - Wellingdon

Graph 5 - 6 – Legal & General

Graphs 7 - 10 – 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, 11 and 12 on the agenda.

Mr Davies reported that the third quarter that seen a very strong rise in equity appreciation. Since the end of the quarter there had been further appreciation in equity values, such that UK equities had reached the maximum of the allowed range when expressed as a proportion of the Fund as a whole. A decision to rebalance had therefore been taken at the end of November with the transfer of £16m or 1% of the Fund from the UK passive Equities mandate to Bonds.

Overall the Fund had performed 0.1% below its benchmark over the past year, but was 0.9% behind over the last 5 years.

The Committee is RECOMMENDED that the public be excluded for the duration of items 8, 9, 10, 11, 12, 13 and 14 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 12, there is no report circulated with the Agenda. Any exempt information will be reported orally.

It was AGREED that the public be excluded for the duration of items 8, 9,10,11,12,13,14 and 15 in the Agenda since it was likely that if they were present during those items there would be a disclosure of exempt information as defined under 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 the circumstances of each case, the public interest in maintaining the exemption outweighed the public interest in disclosing the information.

10:25

To approve the exempt minute of the meeting held on 6 September 2013 (PF7) and to receive information arising from them.

The exempt Minute of the meeting held on 6 September was approved and signed as a correct record subject to the amendment of ‘Stanska to ‘Skanska’.

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.

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.

10:40

(1)               The Independent Financial Adviser will report orally on the performance and strategy of UBS drawing on the tables at Agenda Items 5 and 8.

(2)               The representatives (Malcolm Gordon and tbc) 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 September 2013;

(b)       give their views on the future investment scene.

In support of the above is their report for the period to 30 September 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.

The representatives, Malcolm Gordon, Eric Byrne and Anthony Sander 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 30 September 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.

11:20

(1)               The Independent Financial Adviser will report orally on the performance and strategy of Adams Street drawing on the tables at Agenda Items 5 and 8.

(2)               The representatives (Ana Maria Harrison and David Arcauz) 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 September 2013;

(b)                 give their views on the future investment scene.

In support of the above is their report for the period to 30 September 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.

The representatives, Ana Maria Harrison and David Arcauz 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 30 September 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.

12:00

The Independent Financial Adviser will report (PF11) on the main issues arising from the officer meetings with Baillie Gifford and Wellington. These reports should be read in conjunction with information contained in the tables (Agenda Item 5 and 8).

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.

The Committee considered two notes of meetings which took place since the last meeting (PF 11) 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.

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. 

The Independent Financial Adviser raised a matter of concern with regard to the underperformance against a target by one of the Fund Managers.

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.

It was RESOLVED to note the oral summary and to request the officers to take the action identified in the meeting (this is the subject of an exempt Minute).

12:05

The Committee are asked to determine their approach to a recent employer cessation, and whether to accept the part payment offered as final settlement for the outstanding liabilities, or to seek recovery of the full sum due (PF13).

The public should be excluded for the consideration of this report because its discussion in public would be likely to lead to the disclosure to the public present of information in the following categories prescribed by Part 1 of Schedule 12A to the Local Government Act 1972 (as amended):

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 commercial position of the parties involved, and the ability of the parties to maintain the current provision of public services.

The Committee is RECOMMENDED to determine their approach to the cessation of the employer as a member of the Oxfordshire Pension Fund.

The Committee was asked to determine its approach to a recent employer cessation, and whether to accept the part payment offered as final settlement for the outstanding liabilities, or to seek recovery of the full sum due (PF13).

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 commercial position of the parties involved, and the ability of the parties to maintain the current provision of public services.

The Committee RESOLVED to request the officers to take the action identified in the meeting (this is the subject of an exempt Minute).

12:15

The Committee are asked to determine the payment of a death grant where payment has been contested (PF14).

The report contains financial information relating to the former scheme member and his family members.

The public should therefore be excluded for the consideration of this report because its discussion in public would be likely to lead to the disclosure to the public present of information in the following prescribed categories:

1          Information relating to any individual

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 would infringe the rights of the individual to privacy contrary to the general law and the public duty of the authority to respect human rights and to comply with that law.

The Committee is RECOMMENDED to determine beneficiaries due to receive payment of the death grant.

The Committee were asked to determine the payment of a death grant where payment had been contested (PF14).

The report contained personal and financial information relating to the former scheme member and his family members

The report contained personal and financial information relating to the late former scheme member and his family members and therefore 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:

            1.         Information relating to any individual;

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 infringe the rights of the individual to privacy contrary to the general law and the public duty of the authority to respect human rights and to comply with that law.

The Committee determined the beneficiaries due to receive payment of the death grant (this is the subject of an exempt minute).

12:20

The report PF15 updates the Committee on the Determination by the Pensions Ombudsman of a case which they initially considered in December 2011.  The Pensions Ombudsman has dismissed the complaint and supported the Council's right to recover the full overpayment initially made to the complainant.

The public should be excluded for the consideration of this report because its discussion in public would be likely to lead to the disclosure to the public present of information in the following categories prescribed by Part 1 of Schedule 12A to the Local Government Act 1972 (as amended):

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.

The Committee is RECOMMENDED to note the report and the final determination in this case.

The Committee had before them a report (PF15) which gave information on the determination by the Pensions Ombudsman of a case which was initially considered by Members in December 2011. The Pensions Ombudsman had dismissed the complaint and supported the Council’s right to recover the full overpayment initially made to the complainant.

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.

RESOLVED: to note the report and the final determination (this is the subject of an exempt Minute).

ITEMS FOLLOWING THE RE-ADMISSION OF THE PRESS AND PUBLIC

12:25

The report (PF16) updates the Committee on the latest position in respect of the 2013 Valuation.  At the time of writing the report, the Actuary was still working to finalise the result, and a more up to date position will be reported when the Actuary attends theEmployer Forum on 13 December 2013.

The Committee is RECOMMENDED to note the report.

The Committee had before them a report (PF16) which gave an update on the latest position in respect of the 2013 Valuation.

RESOLVED: to note the report.

12:35

The report (PF17) updates the Committee in respect of the on-going discussions on the potential to merge the Oxfordshire Fund with those of Berkshire and Buckinghamshire. If appropriate, the Committee will be recommended to agree variations to the annual budget for 2013/14 to fund changes in support of more collaborative working.

The Committee is RECOMMENDED to note the report.

The Committee had before them an update (PF17) on the on-going discussions in respect of the potential merger of the Oxfordshire Fund with those of Berkshire and Buckinghamshire.

RESOLVED: to note the report.

12:45

The Committee will be requested to formally adopt the Annual Report and Accounts for 2012/13, a draft of which had been presented to the last meeting for comment. A final copy has been included within each Member’s Agenda in booklet form. (Please contact Julie Dean on (01865) 815322 if  a copy of the booklet is required).

The Committee is RECOMMENDED to adopt formally the Pension Fund Annual Report and Accounts 2012/13.

The Committee was requested to formally adopt the Annual Report and Accounts for 2012/13, a draft of which had been presented to the last meeting for comment and a copy circulated in booklet form to all members of the Committee.

RESOLVED: (nem con) to adopt formally the Pension Fund Annual Report and Accounts 2012/13.

12:47

The Committee previously received reports in March 2012, December 2012, June 2013 and September 2013 regarding the 2014 Local Government Pension Scheme (LGPS). This report (PF19) is to further update the Committee on the progress of the implementation of the 2014 Local Government Pension Scheme (LGPS) and the Regulations which have been issued to date. This report also looks at the changes which need to be made to Administering Authority policies as a result.

The Committee is RECOMMENDED to note the report.

The Committee had previously received reports in March 2012, December 2012, June 2013 and September 2013 regarding the 2014  Local Government Pension Scheme (LGPS). The Committee were further updated (PF19)  on the progress of the implementation of the 2014 LGPS and the Regulations which had been issued to date. The report also looked at the changes which needed to be made to Administering Authority policies as a result.

RESOLVED: to note the report.

12:50

The report (PF20) seeks Committee approval for any new admissions to the Fund, as well as updates the Committee 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 Innovate Services Ltd;

(c)   approve the application for admitted body status by Cater Link Limited;

(d)  approve the application for admitted body status by April Cleaning; and

(e)  note the cessation of scheme employers.

The Committee considered a report (PF20) which gave an update on recent employer issues, on new requests for admission and employer cessations.

RESOLVED: to

(a)   note the progress of previously approved applications for admitted body status;

(b)   approve the application for admitted body status by Innovate Services Ltd;

(c)   approve the application for admitted body status by Cater Link Limited;

(d)   approve the application for admitted body status by April Cleaning Services; and

(e)   note the cessation of scheme employers.

12:55

The Committee are asked to agree a number of updates to the current scheme of delegation to reflect changed job roles in the Council, and a revised approach to the trade arrangements for Private Equity (PF21).

The Committee is RECOMMENDED to:

a)                 note the report, and the changes to the Scheme of Delegation following the management changes in Finance; and

b)                approve the transfer of delegated responsibility for placing private equity trades to the pension fund investments team.

The Committee’s agreement was sought to a number of updates to the current scheme of delegation to reflect changed job roles in the Council, and a revised approach to the trade arrangements for Private Equity (PF21).

RESOLVED: to

(a)               note the report and the changes to the Scheme of Delegation following the management changes in Finance; and

(b)               approve the transfer of delegated responsibility for placing private equity trades to the pension fund investments team.

12:57

The report (PF22) provides the Committee with summary details of the amounts written off in the last quarter in accordance with Financial Regulations of the Fund.

The Pension Fund Committee is RECOMMENDED to note the report

The Committee had before them a report (PF22) 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.

13:00

Each year the Pension Fund Committee considers the arrangements for monitoring the performance of its Fund Managers. This report sets out the proposed schedule for 2014/15, and recommends the Committee to approve the arrangements (PF23).

The Committee is RECOMMENDED to approve the Fund Manager monitoring Arrangements as set out in the report.

Each year this Committee considers the arrangements for monitoring the performance of its Fund Managers. Members considered a report (PF23)  which set out the proposed schedule for 2014/15.

RESOLVED: to approve the Fund Manager Monitoring Arrangements as set out in the report PF23.

13:03

This item covers any issues concerning Corporate Governance and Socially Responsible Investment which need to be brought to the attention of the Committee.

No issues concerning Corporate Governance and Socially Responsible Investment were raised.

13:05

The Committee is reminded that the Annual Pension Fund Forum for all employers is to be held at Unipart House on Friday 13 December 2013.

Members of the the Committee were reminded that the Annual Pension Fund Forum for all employers would take place at Unipart House on Friday 13 December 2013.