Meeting documents

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To Members of the Pension Fund Committee

Notice of Meeting

  
Chris Impey
Assistant Chief Executive 17 May 2002

Membership

Councillor Dickie Dawes in the chair

Councillors:

Co-opted Members:

The agenda follows. Decisions taken at the meeting will become effectiveat the end of the working day on Friday 31 May 2002unless 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 8 April 2002 (PF3) and to receive for information any matters arising therefrom.

Petitions and Public Address



Overview of Past and Current Investment Position

Charts 1 and 2 -	Provide information on portfolio distribution for the Fund Manager, Deutsche Asset Management and Schroders;
Chart 3 -	Shows the Asset Distribution percentage underweight/overweight versus Benchmark during the quarter;
Chart 4 -	Shows net investment/disinvestments during the quarter;
Charts 5 to 10 -	Focus on investment performance during the quarter and for 1, 3 and 5 years;
Charts 11 to 12 -	Provide information on UK equity sector distribution for both the Fund Managers, Deutsche Asset Management and Schroders;
Charts 13 to 14 -	Show UK equity sector returns for the quarter and for the year end to 31 March 2002.

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 24 August 2002.

Overview and Outlook for Investment Markets

10:15 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, is supported by relevant charts of economic and market trends, where appropriate, and these 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 is 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 31March 2002;

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 March 2002, 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 31March 2002;
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

11:30 The Financial Adviser will, if necessary, summarise the previous 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).)

Asset Liability Study

Report by Director for Business Support and County Treasurer (PF10E).

11:35 The report sets out a recommended timetable for an agreed phasing of the Asset Allocation Policy. It also sets out a recommended interim arrangement for changes to the existing CAPS benchmark. Officers have written to several external consultants formally inviting them to submit a quotation to advise on the Pension Fund’s management structure and any consequential changes to existing arrangements. Having considered both the cost and any quality of service the consultants are able to provide. An appointment is recommended.

The Committee is RECOMMENDED to

1. agree the proposed timetable for the phasing-in of the new asset allocation policy as set out in table 2 of Annex 1;
2. instruct Officers and the Independent Financial Advisor to meet with the managers to agree appropriate benchmark indices for all the major asset classes; and
3. appoint the Consultant named in the report to review the existing Oxfordshire Pension Fund structure and where appropriate recommend any changes.

Socially Responsible Investment and Corporate Governance Issues

The Myner’s Review on Institutional Investment in the United Kingdom

1. ask officers to draw up an annual business plan, which should contain financial estimates for the investment and administration of the Pension Fund and appropriate provision for member training;
2. ask officers to carry out a formal tender process for the Fund’s actuarial services in the summer of 2003.

Representation on Pension Fund Committee

Report by Director for Business Support and Assistant Chief Executive (PF13).

12:15 The Oxford City Branch of UNISON are seeking UNISON representation on the Pension Fund Committee in order to oversee the Fund, on the basis that councillors representing local authorities are not accountable to employee contributors, nor beneficiaries of the scheme.

The report sets out the arrangements made by other County Council Pension Fund committees in their appointment processes for a UNISON representative and will explore various options that the Oxfordshire Fund may wish to adopt.

The Committee is RECOMMENDED to:

1. confirm the present policy of inviting an observer to attend Committee meetings in order to represent the beneficiaries and pensioners, and
2. ask the officers to formalise the terms and conditions of this appointment, in consultation with Unison, and report on these arrangements to a future meeting of this Committee.

Proposed Arrangements for the Approval of Early Retirements

Report by Director of Strategy and Director for Business Support (PF14).

12:35 Since the change in the political structures of the Council the arrangements for the approval of early retirements have been the subject of some debate. As a result the Pensions Benefits Sub-Committee asked for a report which sets down revised arrangements for the approval of early retirements. This report responds to that request and has been the subject of consultation with all Directors.

The Committee is RECOMMENDED to approve the proposed revised arrangements for the approval of early retirements.

Application for Admitted Body Status

Report by the Director for Business Support (PF15).

12:40 The report introduces to the Committee an application from the Hamilton Oxford Schools Partnership seeking admission to the Local Government Pension Fund.

The Committee is RECOMMENDED to approve the application of The Hamilton Oxford Schools Partnership subject to all parties agreeing to the terms of the Admission Agreement, and this Committee being informed when agreements have been signed.

Annual Forum