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To Members of the Pension Fund Committee Notice of Meeting
* PLEASE NOTE START TIME
Membership Chairman - Councillor Rodney Rose Deputy Chairman - David Harvey Councillors:
Co-opted Members:
AGENDA
Councillors Bradshaw, Harvey, Moley, Rose and Service are members of the Pension Fund Scheme under the provisions of Section 18 of the Local Government and Housing Act 1989. To approve the minutes of the meeting held on 24 February 2006 (PF5) and to receive for information any matters arising from them.
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 March 2006 using the following tables: 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 9E, 10E and 11E on the agenda. EXEMPT ITEMS The Committee is RECOMMENDED that the public be excluded for the duration of items 9E, 10E, 11E, 12E and 13E 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 9E, 10E and 11E 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 9E, 10E and 11E, AND ANY INFORMATION TO BE REPORTED ORALLY, HAVE NOT BEEN MADE PUBLIC AND SHOULD BE REGARDED UNTIL AFTER 26 AUGUST 2006 AS STRICTLY PRIVATE TO MEMBERS AND OFFICERS ENTITLED TO RECEIVE SUCH REPORTS AND INFORMATION. 8.E Overview and Outlook for the Investment Markets 10:45 Report of the Independent Financial Adviser (PF8E) (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. 9.E Report of Main Issues arising from Reports of the Fund Managers not represented at this meeting 10:55 The Independent Financial Adviser will report orally on the main issues arising from the officer meetings with Alliance Bernstein and Baillie Gifford in conjunction with information contained in the tables (Agenda item 7). 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 presentations and to take any necessary action, if required. 10.E UBS Global Asset Management 11:00 (2) The representatives (Mr K Barker and Mr J Davies) 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 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 March 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. 11.E Legal & General 11:30 (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 2006; (b) give their views on the future investment scene. In support of the above is their report for the period to 31 March 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. 12.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. 13.E Appointment of Private Equity Managers 12:05 Report of the Head of Finance & Procurement (PF13E) In November 2005 Officers and the Independent Financial Adviser were given delegated authority, by the Pension Fund Committee, to short list, interview and appoint appropriate private equity managers, having regard to achieving a well diversified portfolio in terms of both geographical and financing stage. They were asked to report the outcome of this exercise to this meeting. The report explains how the tender, evaluation and short listing of the managers was undertaken. It provides the reasons why three managers were short listed and why two of these were eventually appointed. 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:
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 distort the proper process of open competition in the sale and purchase of services and would prejudice the position of the authority in that process. The Committee is RECOMMENDED to note that officers and the Independent Financial Adviser have, in accordance with the authority the Committee delegated in November 2005, appointed Adam Street Partners to manage £13.2 million in private equity fund of funds and Partners Group to manage £6.8 million in private equity fund of secondaries funds, subject to the satisfactory completion of contracts. ITEMS FOLLOWING THE RE-ADMISSION OF THE PRESS AND PUBLIC
12:15 Report of the Head of Finance & Procurement (PF14) The report sets out details of a legal action which KPMG and McGrigors are progressing on behalf of a number of pension schemes. The report sets out the background to the action, indicates the potential benefit to the Fund and seeks the Committee’s approval to Oxfordshire Pension Fund joining this action and to the costs of involvement.
The Committee is RECOMMENDED to:
12:30 Report of the Head of Finance & Procurement (PF15) This report provides a briefing on the recent changes to the LGPS in the context of the wider ('A Day') changes to the UK pension regime and updates the Committee on a number of administrative issues. The Committee is RECOMMENDED to:
12:40 Report of the Head of Finance & Procurement (PF16) The report sets out one application for admission as a transferee admission body to the Pension Fund. The Committee is RECOMMENDED to approve the application of Capita subject to it agreeing to the terms of the Admission Agreements and this Committee being informed when the agreement is signed. 12:45 The Committee received a report in February 2006 informing Members of the steps being taken to recruit a second stage nominated person, following the death of Mr Langridge. Mr John Briscoe has been appointed to this post from 1 April 2006. Mr Briscoe was Pensions Manager at Norfolk County Council until 1997, after which he became an independent consultant. He has comprehensive knowledge of the Local Government Pension Scheme Regulations and undertakes the second stage nominated person role for 15 other local authorities. The Committee is RECOMMENDED to note the report. 12:50 Report of the Head of Finance & Procurement (PF18) The report informs the Committee that a decision has been made under the powers delegated to the Head of Finance & Procurement by the Committee at its meeting in November 2005 of whether a child’s pension could continue when a gap year had been taken. The Committee is RECOMMENDED to note the report. 12:55 The Head of Finance & Procurement will report orally on any issues arising from the last Annual Forum. Suggested date for the next Forum is 24 November 2006 at 2.30 pm. The Committee is RECOMMENDED to note the report and to agree the date for the next Forum. 13:00 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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