Meeting documents

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To Members of the Pension Fund Committee

Notice of Meeting

Chris Impey
Assistant Chief Executive

22 August 2002

Membership

Chair – Councillor Dickie Dawes

Councillors:

Co-opted Members:

The agenda follows. Decisions taken at the meeting will become effective at the end of the working day on 9 September 2002 unless called in by that date for review by the appropriate Scrutiny Committee.

AGENDA

1. Apologies for Absence and Temporary Appointments
2. Declarations of Interest
3. Minutes

To approve the minutes of the meeting held on 24 May 2002 (PF3) and to receive for information any matters arising therefrom.

4. Petitions and Public Address
5. Overview of Past and Current Investment Position

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 30 June 2002.

Charts 1 and 2 -	provide information on portfolio distribution for the Fund Managers, Deutsche Asset Management and Schroders;
Chart 3 -	shows the Asset Distribution percentage underweight/overweight versus Benchmark during the quarter;
Chart 4 -	shows net investment/disinvestments 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 30 June 2002.

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 9E and
10E in the Agenda.

6. Performance of Pension Fund

10:15 Reports by Combined Actuarial Performance Services Ltd (CAPS) will be presented by Mr J. Wigley.

1. General Reports

The general reports (Pension Fund Statistics and Review documents will give details of the main investment markets and performance statistics for all fund measures by CAPS).

2. Individual Report for Oxfordshire County Council Fund

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 9E - 11E 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 9E and 10E and any information to be reported orally have not been made public and should be regarded as strictly private to members and offices entitled to receive them until after 30 November 2002.

7. CAPS Reports for Each Fund Manager

1. Schroder

Mr Wigley will report, analysing in detail the year 2001 investment performance of the Schroder portfolio of the Superannuation Fund.

2. Deutsche Asset Management

8. Overview and Outlook for Investment Markets

11:15 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 PF8E, which is not exempt, is supported by relevant charts of economic and market trends, where appropriate, and these 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 is 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.

9. Deutsche Asset Management Ltd

2. The representative(s) of the Fund Manager will:
3. 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 30 June 2002;

0. report on whether or not voting rights have been exercised, and if so details of the rights exercised;
1. give their views on the future investment scene; and
2. in the light of (1) above, recommend any change in their strategy and/or asset allocation;
3. In support of the above is their valuation report for the period to 30 June 2002, and a separate report for the period.

10. Schroder Investment Management

2. The representative(s) of the Fund Manager will:

0. 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 30 June 2002;
1. report on whether or not voting rights have been exercised, and if so details of the rights exercised;
2. give their views on the future investment scene; and
3. in the light of (1) above, recommend any change in their strategy and/or asset allocation.

11. Summary by the Financial Adviser

12:15 The Financial Adviser will, if necessary, summarise the previous 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).)

12. Investment Management Arrangements

12:20 Report by Director for Business Support & County Treasurer (PF12E).

(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 to agree that a special meeting be held on 7 October 2002 at 2.00 pm to consider a future investment management structure for the Pension Fund.

13. Payment of Children’s Pension After a Break from Full-Time Education

12:25 Report by Director for Business Support & County Treasurer (PF13E).

1. The Committee is RECOMMENDED to agree that:-

1. the break in full time education of the child named in the report be disregarded and the pension payment start again from September 2002; and
2. in all future cases, when a break is less than 2 academic years, it can be disregarded to enable a pension to come into payment again.

14. Benchmark – Asset Allocation and Indices

12:30 Report by Independent Financial Adviser (PF14).

During the quarter officers and the Independent Financial Adviser met the two investment managers to agree the implementation of the new asset allocation phasing arrangements, new benchmark indices and new investment ranges. The report explains the revised arrangements and recommends changes to the existing investment ranges.

The Committee is RECOMMENDED to:

1. agree the benchmark for total assets during the transition period set out in paragraph 2 (a);
2. agree the asset allocation for overseas equities in paragraph 2 (b); and
3. agree the target asset allocations, permitted ranges and benchmarks set out in paragraph 2 (c).

15. Draft Annual Report and Accounts 2001/02

12:40 Report by Director for Business Support & County Treasurer (PF15). (download as .rtf file)

The Draft Annual Report gives details of the Pension Fund Committee, the administration of the Pension Fund and the Fund’s contributions, pensioners and investments.

Further details is provided in the annexes to the report.

The Committee is RECOMMENDED to receive the draft report and accounts.

16. Socially Responsible Investment and Corporate Governance Issues

12:50 The Director for Business Support & County Treasurer will give an oral report on issues arising from officers and fund managers on their involvement in matters of Socially Responsible Investment and Corporate Governance.

The Committee is RECOMMENDED to note the report.

17. Annual Forum