To Members of the Pension Fund Committee
Notice of a Meeting of thePension Fund Committee
Wednesday 25 February 2009 at 10.00 am
County Hall, Oxford
Tony Cloke Membership
Chairman – Councillor David Harvey Deputy Chairman – Councillor Ray Jelf
Councillors:
Co-opted Members – District Council Representatives:
Councillors:
Notes: · A lunch will be provided · Date of next meeting: 22 May 2009
AGENDA (Addenda) 1. Apologies for Absence and Temporary Appointments
2. Declarations of Interest – see guidance note
3. Minutes
To approve the minutes of the meeting held on 26 November 2008 (PF3) and to receive for information any matters arising on them.
4. Petitions and Public Address
5. Overview of Past
and Current Investment Position 10:05 Tables 1 to 7 (download as .pdf file) 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 December 2008 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 7E, 8E and 9E on the agenda.
EXEMPT ITEMS
The Committee is RECOMMENDED that the public be excluded for the duration of items 6E, 7E, 8E, 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 7E and 8E, there are no reports circulated with the Agenda. Any exempt information will be reported orally.
6.E Overview and Outlook for Investment Markets 10:20 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.
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.
7.E Baillie Gifford 10:35 (1) The Independent Financial Adviser will report orally on the performance and strategy of Baillie Gifford drawing on the tables at Agenda Items 5 and 6E. (2) The representatives (Mr L Robb and Mr I McCombie) 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 December 2008; (b) give their views on the future investment scene.
In support of the above is their report for the period to 31 December 2008.
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.
8.E Legal & General 11:15 (1) The Independent Financial Adviser will report orally on the performance and strategy of Legal & General drawing on the tables at Agenda Items 5 and 6E. (2) The representatives (Mr J Cloke and Mr R Barnard-Smith) 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 December 2008; (b) give their views on the future investment scene. In support of the above is their report for the period to 31 December 2008.
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.
9.E Report of Main Issues arising from Reports of the Fund Managers not represented at this meeting11:55 The Independent Financial Adviser will report orally on the main issues arising from the reports from Alliance Bernstein and UBS in conjunction with information contained in the tables (Agenda Item 5).
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 reports and to take any necessary action, if required.
10.E Summary by the Independent Financial Adviser 12:05 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.
11.E Private Equity, Asset Allocation, Cash Holdings and Hedge Funds 12:10 Report of the Independent Financial Adviser (PF11E)
The report considers the allocation to Private Equity and Hedge Funds and the impact on asset allocation.
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.
12.E Appointment of the Independent Financial Adviser 12:20 Report of the Assistant Chief Executive and Chief Finance Officer (PF12E)
The report sets out the outcome from the appointment process.
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 Additional Voluntary Contributions 12:30 Report of the Assistant Chief Executive and Chief Finance Officer (PF13E)
This report is the regular review of Oxfordshire Pension Fund's Additional Voluntary Contributions provision and looks at the performance of the provider.
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 lead to the disclosure of the amount proposed to be incurred.
ITEMS FOLLOWING THE RE-ADMISSION OF THE PRESS AND PUBLIC
14. Independent Financial Advice: Private Equity Portfolio 12:40 Report of the County Solicitor & Monitoring Officer (PF14)
The Pension Fund Committee, at its meeting on 26 November 2008, agreed the recommendations contained in the report relating to the Independent Financial Adviser – Annual Reviews and Outcomes of Appointment Process of New Adviser (PF13E). It also requested the County Solicitor to advise on the processes which need to be followed on obtaining independent financial advice on the Private Equity Portfolio.
The report sets out the background to how the Committee has previously dealt with these matters and sets out a range of options that the Committee is recommended to consider.
The Committee is RECOMMENDED to consider the report and decide on its preferred option for ensuring appropriate scrutiny of the performance relating to the quoted investment trusts.
15. Oxfordshire Pension Fund Business Plan and Budget for 2009/10 12:50 Report of the Assistant Chief Executive and Chief Finance Officer (PF15)
This report sets out the annual business plan and budget for the 2009/10 financial year and also includes a member training programme and an investment management/scheme administration budget.
The Committee is RECOMMENDED to:
(a) approve the Business Plan, as set out at Annex 1, for 2009/10;
(b) approve the Investment Management and Scheme Administration Budget for 2009/10, as set out in Annex 2;
(c) comment on the proposals for member training as set out in the report and in Annex 3; and
(d) subject to (c) above, agree the arrangements for member training.
16. Investment Valuation Monitoring Arrangements 12:55 Report of the Assistant Chief Executive and Chief Finance Officer (PF16)
At the last meeting, the Committee requested a report on the arrangements for maintaining an up to date valuation of Pension Fund Investments. The report discusses the arrangements.
The Committee is RECOMMENDED to note the revised arrangements for monitoring the value of the Fund’s investments.
LUNCH 17. CIPFA Local Authority Pension Fund Investment Statistics 14:00 Report of the Assistant Chief Executive and Chief Finance Officer (PF17)
The statistics cover investment returns for 3, 5 and 10-year periods ended 31 March 2008. The statistics also cover asset distribution, showing the percentage weighting of funds in each major asset class.
The Committee is RECOMMENDED to receive this report.
18. Payment of a Death Grant 14:10 Report of the Assistant Chief Executive and Chief Finance Officer (PF18)
The report seeks Committee approval to make payment.
The Committee is RECOMMENDED to make payment of the death benefit to the deceased member’s son.
19. Write Off 14:15 Report of the Assistant Chief Executive and Chief Finance Officer (PF19)
The report informs the Committee of the amounts which have been written off.
The Committee is RECOMMENDED to note this report.
20. Annual Pension Forum 14:20 The Assistant Chief Executive and Chief Finance Officer will report orally on any issues arising from the last Pension Forum held on 5 December 2008.
The Committee is RECOMMENDED to note the report.
21. Corporate Governance and Socially Responsible Investment 14:25 The Assistant Chief Executive and Chief Finance Officer 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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