Meeting documents

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To Members of the Pension Fund Committee

Notice of Meeting

Chris Impey
Assistant Chief Executive & Solicitor to the Council February 2002

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

Apologies for Absence and Temporary Appointments

Declarations of Interest



Minutes

To approve the minutes of the meeting held on 31 December 2001 (PF3) and to receive for information any matters arising therefrom.

Petitions and Public Address



Overview of Past and Current Investment Position

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.

Overview and Outlook for Investment Markets

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.

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 31 December 2001;

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;
4. In support of the above is their valuation report for the period to 31 December 2001, and a separate report for the period.

Schroder Investment Management

2. The representative(s) 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 December 2001;
2. report on whether or not voting rights have been exercised, and if so details of the rights exercised;
3. give their views on the future investment scene; and
4. in the light of (1) above, recommend any change in their strategy and/or asset allocation;

Summary by the Financial Adviser

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:

1. instruct its managers to vote in accordance with the NAPF Voting Issues Service unless there are exceptional circumstances, which in the managers’ judgement would not be in the best interests of Oxfordshire;

LUNCH AT 12.45 PM.

14. Premature Retirement Compensation Scheme for Teachers

30. Report by the Acting Chief Education Officer (PF14).

15. Management & Administration Budget

2:40 Report by Director for Business Support & County Treasurer (PF15).

16. Applications for Admitted Body Status

2.50 Report by Director of Business Support & County Treasurer (PF16).

1. approve the application of the Thames Valley Partnership subject to all parties agreeing to the terms of the Admission Agreement, and this Committee being informed when the agreements have been signed and
2. note that the admission agreements with the St John’s Care Trust and Oxfordshire Care Partnership have been agreed and signed.

17. Widowers’ Pensions

3:00 Report by Director for Business Support & County Treasurer (PF17).

18. Annual Forum