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To Members of the Pension Fund Committee Notice of Meeting
Chris Impey Membership Councillors:
Co-opted Members:
The agenda follows. Decisions taken at the meeting will become effective at the end of the working day on Wednesday 6 March 2002 unless called in by that date for review by the appropriate Scrutiny Committee.
AGENDA
To approve the minutes of the meeting held on 31 December 2001 (PF3) and to receive for information any matters arising therefrom.
10:05 The Financial Adviser will review the investment activity during the past quarter and present an overview of the fund’s position as at 31 December 2001 using the following charts:-
Charts 1 to 3 - provide information on portfolio distribution for the Fund Managers, Deutsche Asset Management and Schroders. Chart 4 - shows net investment/disinvestment during the quarter; Charts 5 to 10 - focus on investment performance during the quarter and for 1, 3 and 5 years; Charts 11 to 12 - provide information on UK equity sector distribution for both the Fund Managers, Deutsche Asset Management and Schroders. Charts 13 to 14 - show UK equity sector returns for the quarter and year end to 31 December 2001.
The spreadsheets included as tables 1 to 7 provide the detailed figures in support of the above charts.
The Committee is RECOMMENDED to receive the charts and tables, and that the information contained in them be borne in mind insofar as they relate to items 7E to 8E in the Agenda.
EXEMPT ITEMS
The Sub-Committee will be invited to resolve to exclude the public for the consideration of the following exempt items (marked E) by passing a resolution in relation to each such item in the following terms:
"that the public be excluded during the consideration of the following items in the Agenda since it is likely that if they were present during those items there would be a disclosure of "exempt" information as described in Part I of Schedule 12A to the Local Government Act, 1972 and specified below each item in the Agenda."
Note: In the case of items 7E - 8E there are no reports circulated with the Agenda. Any exempt information will be reported orally.
The Fund Managers’ reports relating to the Exempt Items at 7E and 8E and any information to be reported orally have not been made public and should be regarded as strictly private to members and officers entitled to receive them until after 22 May 2002.
10:20 The Independent Financial Adviser will report orally, giving an overview of the current and future investment scene and market developments across various regions and sectors. His oral report and the report (PF6E) which is not exempt will be supported by relevant charts of economic and market trends, where appropriate, which are attached. Any exempt information will be reported orally
(Information Exempt in that it relates to the financial or business affairs of any particular person (other than the authority).)
The Committee are RECOMMENDED to receive the oral report and charts, to consider any further action arising thereon, and to bear the Financial Adviser’s conclusions in mind when considering the Fund Managers’ reports.
10:30 (a) The Independent Financial Adviser will report orally, on the performance and strategy of Deutsche Asset Management Ltd drawing on the charts at items 5 and 6E.
At the end of the presentation members are invited to question and comment, the Fund Managers to respond and, finally:-
(Information Exempt in that it relates to the financial or business affairs of any particular person (other than the authority).)
The Sub-Committee are RECOMMENDED to consider and to adopt or amend any recommendations before them.
10:55 (a) The Independent Financial Adviser will report orally, on the performance and strategy of Schroder Investment Management drawing on the charts at items 5 and 6E.
In support of the above is their valuation report for the period to 31 December 2001, and a separate report for the period.
At the end of the presentation members are invited to question and comment, the Fund Managers to respond and, finally:-
(Information Exempt in that it relates to the financial or business affairs of any particular person (other than the authority).)
The Sub-Committee are RECOMMENDED to consider and to adopt or amend any recommendations before them.
11:20 The Financial Adviser will, if necessary, summarise the foregoing reports of the Fund Managers’ and answer any questions from members.
(Information Exempt in that it relates to the financial or business affairs of any particular person (other than the authority).)
10.E Venture Capital
11:25 Report by the Director for Business Support & the Independent Financial Adviser (PF10E).
The report concerns a presentation to the officers and the Independent Financial Adviser by a Venture Fund Investor and makes recommendations concerning investment in a specific Trust.
(Information Exempt in that it relates to the financial or business affairs of any particular person (other than the authority).)
In spite of the illiquidity of the Trust compared with the Pension Fund’s other venture capital investments since 1993, the Committee is RECOMMENDED that up to £1 million be invested in the Trust, subject to, .if the Trust raises less than the maximum of £10 million, the Pension Fund’s investment shall form not less than 10% of the total.
ITEMS FOLLOWING THE RE-ADMISSION OF THE PRESS AND PUBLIC
11. Actuarial Valuation Report
11:40 Report by the Fund’s Actuary (PF11). (download as .rtf file)
The Fund’s Actuary, Watson Wyatt will report on the results of the 31 March 2001 Pension Fund Valuation.
12. Asset/Liability Study Report 12:05 The Director of Business Support will report orally on the results of the asset/liability study, what the implications might be for the Oxfordshire Pension Fund and its possible impact on the future arrangements for the Fund.
In the light of the Asset/Liability Study, the Committee are RECOMMENDED to:-
(a) implement a fund specific benchmark based on the findings in the report;
(b) set up a special meeting of the Pension Fund Committee to be held in the week commencing 8 April 2002;
(c) ask the officers to consult with the Independent Financial Adviser and Watson Wyatt and to recommend a fund specific benchmark for the approval at the special meeting;
(d) use the special meeting to consider whether any further changes should be made to fund investment management.
13. Corporate Governance Voting Arrangements
12:25 Report by Director of Business Support & County Treasurer (PF13).
Further to Minute 55/00 this report covers the regulatory background to the disclosure within statements of investment principles of social, environmental or ethical considerations. The report recommends that the fund managers should vote in accordance with NAPF voting guidelines rather than the Council’s own. The NAPF guidelines are better able to address issues which require a degree of subjective judgement such as remuneration and socially responsible investment issues.
The Committee is RECOMMENDED to:
(b) where managers take a contrary view to the NAPF they must obtain permission from the officers to vote differently.
LUNCH AT 12.45 PM.
14. Premature Retirement Compensation Scheme for Teachers
At the last meeting the current Teachers Premature Retirement Compensation Scheme (attached as Annex 1) was renewed until 30 April 2002. This report asks members to consider what scheme should be in place with effect from 1 May 2002.
The Committee is RECOMMENDED to renew the Premature Retirement Compensation Scheme for Teachers, amended as shown in paragraph 8 of the report until 31 December 2003.
15. Management & Administration Budget2002/03 Report
2:40 Report by Director for Business Support & County Treasurer (PF15).
The District Auditor in his review of the Pension Fund 1995/96 recommended that members should agree an annual budget for management and administration charges. The report sets out the budget for 2002/03 giving details of each elements of the budget and an explanation of how they have been calculated.
The Committee is RECOMMENDED to agree the Pension Fund Management and Administration Budget for 2002/03.
16. Applications for Admitted Body Status
2.50 Report by Director of Business Support & County Treasurer (PF16).
The report introduces to the Committee, an application from the Thames Valley Partnership seeking admission to the Local Government Pension Fund. The application is in accordance with the criteria for categorising bodies which can be admitted to the Fund as introduced by the Investment & Pensions Sub-Committee in November 2000. The report also reports that admission agreements have been signed with the Oxfordshire Care Partnership and the Order of St John’s which were part of the wider Homes for Older People transfer.
The Committee is RECOMMENDED: to
17. Widowers’ Pensions
3:00 Report by Director for Business Support & County Treasurer (PF17).
Current Regulations for the Local Government Pension Scheme came into force from 1 April 1998 and gave employers in the Fund the power to improve the widower’s pension, enabling it to be based on the member’s service from 1972 at no additional cost to that member. Using the discretionary power within these regulations the County Council as an employer within the Fund resolved to improve this package at no additional cost to the member. The DLTR has provided informal suggestions concerning additional provision and the Committee is asked to take a decision concerning additional contributions being paid by some women to secure widowers’ pensions prior to Regulation changes in 1998.
The Committee is RECOMMENDED to approve option d) from the table in the report – to take no further action. The County Council is requested to contact the women employed by the County Council to advise them of the decision and also to inform the other employers within the Oxfordshire Fund.
3.10 The County Treasurer will report on any relevant issues arising from the Annual Forum which took place following the Sub-Committee’s meeting on Friday 16 November.
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