Meeting documents
Pension Fund Committee
Friday, 22 May 2009
To Members of the Pension Fund Committee
|
Alan Bryden |
Neville Harris |
Dermot Roaf |
Don Seale |
Bill Service |
|
Co-opted Members – District Council Representatives:
Councillors:
Richard Langridge |
Bob Price |
|
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 25 February 2009 (PF3) and to receive for information any matters arising on them.
Matters Arising:
At the last meeting the public were not excluded for the following items on that agenda:
6E Overview and Outlook for Investment markets
7E* Baillie Gifford
8E* Legal & General
9E Report of main Issues arising from Reports of the Fund Managers not represented at this meeting.
10E Summary by the Independent Financial Adviser
11E* Private equity, Asset Allocation, Cash Holdings and Hedge Funds.
12E* Appointment of the Independent Financial Adviser
13E* Additional Voluntary Contributions
Items marked with an asterisk had reports associated with them and the Committee is RECOMMENDED to confirm that these papers should be regarded as strictly private as they contain exempt information as defined in Part I of Schedule 12A to the Local Government Act 1972 (as amended) 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.
4. Petitions and Public Address
5. Overview of Past and Current Investment Position
10:20
Tables 1 to 10 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
March 2009 using the following tables:
(Tables 1 - 10 - download as .xls file)
(Tables 11 -16 - download as .xls file)
Table 1 - provides a consolidated valuation of the Pension Fund at 31 March 2009;
Tables 2 to 7 - provide details of the individual manager’s asset allocations and compare these against their benchmark allocations;
Table 8 - shows net investment/disinvestments during the quarter;
Tables 9 to 10 - provide details on the Pension Fund’s Private Equity;
Tables 11 to 16- provide investment
performance for the consolidated Pension Fund and for the four Managers for the
quarter ended 31 March 2009.
In
addition to the above tables, the performance of the Fund Managers over the
past 18 months has been produced graphically as follows:
(Graphs 1 - 4 - download as .xls file)
Graph 1 - Alliance Bernstein
Graph 2 - Baillie Gifford
Graph 3 - Legal & General
Graph 4 - UBS
The Committee is RECOMMENDED to receive the tables and graphs, 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 and 11E 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 and 10E, 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, tables and graphs, 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 UBS Global Asset Management
10:50
(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 representative (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 March 2009;
(b) give their views on the future investment scene.
In support of the above is their report for the period to 31 March 2009.
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 Alliance Bernstein
11:30
(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 N Davidson) 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 March 2009;
(b) give their views on the future investment scene.
In support of the above is their report for the period to 31 March 2009.
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 meeting
12:10
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.
10.E Summary by the Independent Financial Adviser
12:20
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 Cash Management Arrangements, including Re-Balancing
12:25
Report of the Assistant Chief Executive & Chief Finance Officer and the Independent Financial Adviser (PF11E)
The Committee at its last meeting requested a report on the arrangements for managing the Pension Fund’s cash. This report considers these arrangements, the reasons for the relatively high level of cash currently held and proposals for re-investing this cash over the next six months.
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.
ITEMS FOLLOWING THE RE-ADMISSION OF THE PRESS AND PUBLIC
12. Admission Bodies
12:40
This report (PF12) presents two applications for admission to the Local Government Pension Fund following outsourcing of leisure services by Oxford City Council and South Oxfordshire District Council.
The Committee is RECOMMENDED to approve the applications subject to their agreeing to the terms of the Admission Agreements and this Committee being informed when the agreement is signed.
13. Annual Pension Forum
12:50
The suggested dates for the 2009 forum are either Wednesday 09 December or Friday 11 December 2009. These dates follow the December meeting so that Committee will have received the final Annual Report and Accounts at that meeting.
It is proposed that the forum will, again, be held at Unipart House.
Members are asked to confirm which date should be used.
14 Corporate Governance and Socially Responsible Investment
12:55
The Assistant Chief Executive and Chief Finance Officer has nothing specific to report 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