Meeting documents

Pension Fund Committee
Friday, 27 May 2005

PF270505

______________________________________


________________________________

To Members of the Pension Fund Committee

Notice of Meeting

Meeting

PENSION FUND COMMITTEE

Date/Time

27 May 2005 at 10.00 am

Place

County Hall, Oxford

Contact officer

Marion Holyman
(Tel: 01865 810177; E-mail)

Derek Bishop
Head of Democratic Services

18 May 2005

Membership

Chairman – Councillor Rodney Rose

Councillors:

Neville Harris

David Harvey

Steve Hayward

Jim Moley

Dermot Roaf

David Wilmshurst

Co-opted Members:

Michael Howes

Bob Price

 

 

AGENDA

Addenda

  1. Apologies for Absence and Temporary Appointments

  2. Declarations of Interest – see guidance note

  3. Minutes

    4. To approve the minutes of the meeting held on 17 May 2005 (PF3) and to receive for information any matters arising from them.

  4. Petitions and Public Address

  5. Overview of Past and Current Investment Position

    (CC5 - download as .xls file)

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 mangers 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 2005 using the following tables:

Table 1 - provides a consolidated valuation of the Pension Fund at 31 March 2005;

Tables 2 to 4 - provide details of the individual managers’ 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 31 March 2005.

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 7E, 8E and 9E on the agenda.

EXEMPT ITEMS

The 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 and 9E, there are no reports circulated with the Agenda. Any exempt information will be reported orally.

The reports from the Fund Managers relating to the Exempt Items at 7E, 8E and 9E 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 27 August 2005 subject to the provisions of the Freedom of Information Act.

6.E Overview and Outlook for the Investment Markets

10:25 Report of the Independent Financial Adviser (PF6E) (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.

(Information Exempt in that it relates to the financial or business affairs of any particular person (other than the authority).)

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.

7.E UBS Global Asset Management

10:45

(1) The Independent Financial Adviser will report orally on the performance and strategy of UBS Global Asset Management drawing on the tables at items 5 and 6E.

(2) The representatives (Mr K Barker and Mr A Patterson) 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 ended 31 March 2005;

(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 valuation report for the period to 31 March 2005.

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 Committee is RECOMMENDED to consider and to adopt or amend any recommendations before them.

8.E Legal and General

11.25

(a) The Independent Financial Adviser will report orally on the performance and strategy of Legal and General drawing on the tables at items 5 and 6E.

(b) The representatives (Ms J Cawley and Mr J Cloke) of the Fund Manager will:

(1) 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 ending on 31 March 2005;

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

In support of the above is their valuation report for the period to 31 March 2005.

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 Committee is RECOMMENDED to consider and to adopt or amend any recommendations before them.

9.E Report of main issues arising from presentations given by Fund Managers not represented at this meeting

12.05 The Independent Financial Adviser and officers received presentations from Baillie Gifford and Alliance Bernstein for the quarter ended 31 March 2005 at County Hall. The Independent Financial Adviser will report orally on the main issues arising from the presentations in conjunction with information contained in the Tables (Agenda item 5) and the managers’ quarterly valuation reports.

(Information Exempt in that it relates to the financial or business affairs of any particular person (other than the authority).)

The Committee is RECOMMENDED to note the main issues arising from the presentations and to take any necessary action, if required.

ITEMS FOLLOWING THE RE-ADMISSION OF THE PRESS AND PUBLIC

10. Local Government Pension Scheme

(See also Addenda)

12.15 Report by the Director for Resources (PF10).

On 1 April 2005, the Office of the Deputy Prime Minister (ODPM) issued draft Regulations for the Local Government Pension Scheme (LGPS), inviting comment by 31 May 2005. The effect of the new Regulations is to revoke the Regulations previously agreed, which came into effect on 1 April 2005. Those initial Regulations had the effect of raising the earliest age at which a pension was payable from 50 to 55 (except in the case of ill-health), and removing the so called 85 year rule, which allowed individuals to receive an unreduced pension if they retired before 65, and their service plus age equalled or exceeded 85, and, in the case of officers below the age of 60, they had their employer’s consent.

The ODPM letter followed a series of meetings between the Deputy Prime Minister and representatives of the local authority employers and trade unions. These meetings culminated in the Deputy Prime Minister announcing his intention to revoke the initial Regulations, subject to statutory consultation, and the unions calling off strike action planned in response to the initial Regulations.

The Cabinet and the Pension Fund Committee (responsible for the Council’s pensions functions as Employing Authority and as Administering Authority respectively) are invited to agree a response to this latest consultation, based on the draft accompanying this report.
  1. Best Value Review of Oxfordshire Pension Fund Administration - Implementation

12.25 Report by the Head of Finance & Procurement (PF11).

Following the Best Value reviews, one of the specific actions arising from them was to agree and implement a development plan over a two-year period from April 2002. The plan was agreed but implementation of the proposed developments did not start until just prior to the cessation of the contract with Liberata and the relocation of the Pensions Services team into County Hall.

The Best Value Committee, at its meeting on 9 March 2005, resolved to:

    1. ask the Head of Finance & Procurement to submit one further report on further progress to the Committee in March 2006;

    2. note that there were no matters in the report to be drawn to the attention of the Executive Member; and

    3. refer the report to the Pension Fund Committee.

12. Socially Responsible Investment and Corporate Governance Issues

12.35 The Head of Finance & Procurement will report orally.

  1. Local Government Pension Scheme Regulations (LGPS) – Applications for Admission as Community Bodies

    2. 12:40 Report by the Head of Finance & Procurement (PF13).

    This report asks members to consider the application from the Oxfordshire Youth Arts Partnership to join the Oxfordshire Pension Fund under the community admission agreements.

    The Committee is RECOMMENDED to approve the application of Oxfordshire Youth Arts Partnership subject to their agreeing to the terms of the Admission Agreements, and this Committee being informed when the agreement has been signed.

  2. Annual Forum

12:45 The Head of Finance & Procurement will report orally on any issues arising from the last Annual Forum or relevant to the next Forum due to be held on 29 November 2005 at 10.00 am.

Return to TOP