Meeting documents
Pension Fund Committee
Thursday, 21 February 2008
To Members of the Pension Fund Committee
|
Tony Crabbe |
Jean Fooks |
Neville Harris |
Dermot Roaf |
Bill Service |
|
Co-opted Members:
Michael Howes |
Bob Price |
|
Notes:
· A lunch will be provided
· Date of next meeting: Wednesday28 May 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 13 December 2007 (PF3) and to receive for information any matters arising on them.
4. Petitions and Public Address
5. Overview of Past and Current Investment Position
10:20
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 31 December 2007 using the following tables:
Table 1 - provides a consolidated valuation of the Pension Fund at 31 December 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 31 December 2007.
(Tables - download as .pdf 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 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, 8E and 9E there are no reports circulated with the Agenda. Any exempt information will be reported orally.
6.E Overview and Outlook for Investment Markets
10:35
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 Report of Main Issues arising from Reports of the
Fund Managers not represented at this meeting
10:50
The Independent Financial Adviser will report orally on the main issues arising from the reports from Baillie Gifford and Legal & General 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.
8.E UBS Global Asset Management
10:55
(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 5 and 6E.
(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 31 December 2007;
(b) give their views on the future investment scene.
In support of the above is their report for the period to 31 December 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.
9.E Alliance Bernstein
11:25
(1) The Independent Financial Adviser will report orally on the performance and strategy of Alliance Bernstein drawing on the tables at Agenda Items 5 and 6E.
(2) The representatives (Mr G Blunden and Mr P Rudden) 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 2007;
(b) give their views on the future investment scene.
In support of the above is their report for the period to 31 December 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.
10.E Summary by the Independent Financial Adviser
11:55
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 Update on the transfer of the UBS UK Equity and Bond Portfolios
12:00
The Assistant Chief Executive & Chief Finance Officer will report orally on the transfer.
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 Independent Financial Adviser’s Fees
12:10
Report by Assistant Chief Executive & Chief Finance Officer (PF12E).
At the December Pension Fund Committee Meeting the Independent Financial Adviser's basic fee was misquoted.
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.
13.E Revised Remuneration Arrangements for the Independent Financial Adviser
12:15
Report by Assistant Chief Executive & Chief Finance Officer (PF13E).
The report discusses revised remuneration arrangements for the Independent Financial Adviser (IFA), following criticism by the County Solicitor that ex gratia payments to the IFA were agreed after rather than before any additional tasks had been undertaken.
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. Oxfordshire Pension Fund Business Plan and Budget for 2008/09
12:25
Report by Assistant Chief Executive & Chief Finance Officer (PF14).
The report sets out the annual business plan for 2008/09 financial year and also includes a member training programme and an investment management/scheme administration budget.
The Committee is RECOMMENDED to:
(a) approve the Oxfordshire Pension Fund Business Plan, as set out in Annex 1 to the report, for 2008/09;
(b) approve the Oxfordshire Pension Fund’s Investment Management and Scheme Administration Budget, as set out in Annex 2 in the report, for 2008/09.
15. Governance Compliance Statement and Funding Strategy Statement
12:35
Report by Assistant Chief Executive & Chief Finance Officer (PF15).
Under the latest Regulations, each Administering Authority has to publish annually a Governance Compliance Statement which sets out how its governance arrangements compare to a set of best practice guidelines. This report presents the first such annual Governance Compliance Statement for the approval of this Committee. The report also highlights that, following a brief review of our current Funding Strategy Statement, no changes to the statement are currently proposed.
The Committee is RECOMMENDED to
(a) consider any changes it wishes to make to the Governance Policy Statement, and the Governance Compliance Statement as presented at Annex 1 and Annex 2 to the report and approve the Statements to be published under Regulation 73A of the Local Government Pension Scheme Regulations 1997, and
(b) note that no changes are currently proposed to the existing Funding Strategy Statement, as contained at Annex 3 to the report.
16. Valuation Update
12:45
The Assistant Chief Executive & Chief Finance Officer will report orally on the Actuary’s triennial valuation.
17. Admission Agreements
12:50
Report of the Assistant Chief Executive & Chief Finance Officer (PF17).
The report updates the Committee on admissions and considers a consultation paper on Admission Body Status.
The Committee is RECOMMENDED to
(a) note the report in respect of the applications;
(b) make comments on the content of the Admission Body Status Consultation; and
(c) delegate to the Assistant Head of Finance (Shared Services) the responsibility to make a response, on behalf of the Oxfordshire Pension Fund, to the consultation including the comments made at b) above, once full consideration has been given to the cost implications within the consultation paper.
18. Write Off’s
12:55
The Assistant Chief Executive & Chief Finance Officer reports as follows:
In November 2007 a change was made to the Scheme of Financial Delegations to allow write off’s, under £7,500, chargeable to the pension fund, to be approved by the Assistant Head of Finance (Shared Services) acting as Director and the Assistant Head of Finance (Corporate Finance) acting as s151 Officer. Under the Scheme of Financial Delegation, such write off’s need to be reported to this Committee for information.
For debts between £7,500 and £10,000 chargeable to the pension fund, approval would need to be sought from the Assistant Chief Executive and Chief Finance Officer. These write off’s will also need to be reported to this Committee for information.
Debts in excess of £10,000 would require the approval of the Pension Fund Committee.
The Assistant Heads of Finance (Shared Services) and (Corporate Finance) have approved the write off of £1,016.09, chargeable to the pension fund, in respect of six cases.
The Pension Fund Committee is RECOMMENDED to note this report.
19. Annual Pension Forum
13:00
(a) The Assistant Chief Executive & 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.
(b) The following are suggested dates for the 2008 Annual Pension Forum:
Friday 05 December;
Monday 08 December or
Friday 12 December 2008.
The Forum would start at 10.30 am and would be held at Chiltern House, Oxford.
The Committee is ASKED to agree the date for the next Forum.
20. Corporate Governance and Socially Responsible Investment
13:05
The Assistant Chief Executive & 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.