Meeting documents
Pension Fund Committee
Thursday, 13 December 2007
To Members of the Pension Fund Committee
|
Bill Bradshaw |
Tony Crabbe |
Neville Harris |
Jim Moley |
Bill Service |
|
Co-opted Members:
Michael Howes |
Bob Price |
|
Notes:
· A lunch will be provided
· Date of next meeting: 21 February 2008
If you have any special requirements (such as a large print version of these papers or special access facilities) please contact the officer named on the front page, but please give as much notice as possible before the meeting. |
AGENDA
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 14 September 2007 (PF3) and to receive for information any matters arising on them.
4. Petitions and Public Address
5. Actuarial Valuation
10:20
Mr Chris Archer, Hewitt Bacon and Woodrow, will attend the Committee meeting to present the key issues arising from the Actuary’s triennial valuation of the Oxfordshire Pension Fund, as at 31 March 2007.
6. Overview of Past and Current Investment Position
10.50
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 30 September 2007 using the following tables:
Table 1 - provides a consolidated valuation of the Pension Fund at 30 September 2007;
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 30 September 2007.
(Tables - download as .xls file)
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 7E, 8E, 9E, 10E, 11E, 12E, 13E and 14E 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.
7.E Overview and Outlook for Investment Markets
11:05
Report of the Independent Financial Adviser (PF7E) (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.
8.E Review of the Pension Fund’s Investment Management
11:15
Joint report of the Assistant Chief Executive and Chief Finance Officer and Independent Financial Adviser (PF8E)
The report reviews the investment management of the pension fund since the changes in 2003.
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.
9.E Report of Main Issues arising from Reports of the
Fund Managers not represented at this meeting
12:05
The Independent Financial Adviser will report orally on the main issues arising from the reports from Alliance Bernstein and Legal & General in conjunction with information contained in the tables (Agenda Item 6).
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 UBS Global Asset Management
12:10
(1) The Independent Financial Adviser will report orally on the performance and strategy of UBS Global Asset Management drawing on the tables at Agenda Items 6 and 7E.
(2) The representatives (Mr P Harris and Mr M Stemp) 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 30 September 2007;
(b) give their views on the future investment scene.
In support of the above is their report for the period to 30 September 2007.
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 Baillie Gifford
12:35
(1) The Independent Financial Adviser will report orally on the performance and strategy of Baillie Gifford drawing on the tables at Agenda Items 6 and 7E.
(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 30 September 2007;
(b) give their views on the future investment scene.
In support of the above is their report for the period to 30 September 2007.
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
13:00
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.
LUNCH
13.E Annual Review of the Independent Financial Adviser
14:00
Report of the Assistant Chief Executive and Chief Finance Officer (PF13E)
The report reviews the activities of the Independent Financial Adviser for the twelve-month period ending 30 November 2007.
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.
14.E Open Tender Process for the Appointment of a Global Custodian
14:15
Report of the Assistant Chief Executive and Chief Finance Officer (PF14.E)
The report reviews the existing contract arrangements which terminate on 31 March 2008.
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
15. Formal Adoption of the Pension Fund Annual Report and Accounts for 2006/07
14:20
A draft of the Annual Report and Accounts was approved at the meeting of the Committee on 14 September 2007. The Committee is asked formally to adopt the Report and Accounts. A copy of the Pension Fund Annual Report and Accounts 2006/07 has been circulated separately to members of the Committee and is also available for public inspection.
The Committee is RECOMMENDED to adopt formally the Pension Fund Annual Report and Accounts 2006/07.
16. Part-time employees
14:25
Report of the Assistant Chief Executive and Chief Finance Officer (PF16)
The report seeks the Committee's approval on how previous part-time service should be dealt with as the amending regulations, which have been anticipated for some considerable time, have not yet materialised.
The Committee is RECOMMENDED to approve the approach detailed in the report to resolve these outstanding cases.
17. Admission agreements
14:30
Report of the Assistant Chief Executive and Chief Finance Officer (PF17)
The report sets out three admission requests from QTASS, Sanctuary Housing Association and Cherwell Housing Trust.
The Committee is RECOMMENDED to:
(a) approve the applications in the report in principle;
(b) delegate authority to the Assistant Head of Finance (Shared Services) to agree final admission.
18. Ill-Health Consultation Paper
14:35
Report of the Assistant Chief Executive and Chief Finance Officer (PF18)
The Department for Communities and Local Government has issued a consultation paper seeking comments on the proposed changes to the ill-health provisions set out in the Local Government Pension Scheme (Benefits, Membership and Contribution) Regulations 2007. The report seeks Committee approval for the proposed Administering Authority response.
The Committee is RECOMMENDED to:
(a) support the introduction of a third tier of ill health benefits;
(b) determine whether they think that one year is a reasonable period for review;
(c) approve/make comment on the draft response attached to the report.
19. CIPFA Local Authority Pension Fund Investment Statistics
14:40
Report of the Assistant Chief Executive and Chief Finance Officer (PF19)
The statistics cover investment returns for the 3, 5 and 10-year periods ended 31 March 2007. 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.
20. Future Programme and Timetable for Investment Manager Monitoring Arrangements
14:45
Report of the Assistant Chief Executive and Chief Finance Officer (PF20)
The report sets out a new programme for investment manager monitoring arrangements for the period February 2008 to February 2009.
The Committee is RECOMMENDED to agree the programme of manager meetings as set out in the report.
21. Annual Pension Forum
14:50
The Assistant Chief Executive and Chief Finance Officer will report orally on any issues arising from the Pension Forum held on 4 December 2007.
The Committee is RECOMMENDED to note the report.
22. Corporate Governance and Socially Responsible Investment
14:55
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.