Meeting documents

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To Members of the Pension Fund Committee

Notice of a Meeting of the

Pension Fund Committee

Friday 25 May 2007 at 10.15 am*

County Hall, Oxford

Tony Cloke
Assistant Head of Service (Democratic)

16 May 2007

Membership

Chairman – Vacancy

Deputy Chairman – Councillor David Harvey

Councillors:

Co-opted Members:

Notes:

·         A lunch will be provided

·         Date of next meeting: 31 August 2007

AGENDA

1.                  Election of Chairman for the 2007/08 Council Year

2.                  Election of Deputy Chairman for the 2007/08 Council Year

3.                  Apologies for Absence and Temporary Appointments

4.                  Declarations of Interest – see guidance note

5.                  Minutes

To approve the minutes of the meeting held on 23 February 2007 (PF5) and to receive for information any matters arising therefrom.

6.                  Petitions and Public Address

7.                  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 March 2007 using the following tables:

Table 1              -     provides a consolidated valuation of the Pension Fund at 31 March 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 March 2007. 

(PF7 - 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 8E, 9E, 10E, 11E and 12E 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.

8.E     Overview and Outlook for Investment Markets

10:40  Report of the Independent Financial Adviser (PF8E) (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.

9.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 Alliance Bernstein and Baillie Gifford in conjunction with information contained in the tables (Agenda item 7).

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

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 7 and 8E.

(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 March 2007;

(b)               give their views on the future investment scene.

In support of the above is their report for the period to 31 March 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   Legal & General

11:25  (1)       The Independent Financial Adviser will report orally on the performance and strategy of Legal & General drawing on the tables at Agenda items 7 and 8E.

(2)        The representatives (Mr R Barnard-Smith, Mr J Cloke and Ms C Goodheart) 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 2007;

(b)       give their views on the future investment scene.

In support of the above is their report for the period to 31 March 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

11:45  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.

ITEMS FOLLOWING THE RE-ADMISSION OF THE PRESS AND PUBLIC

13.             The Local Government (Early Termination of Employment) (Discretionary Compensation) (England and Wales) Regulations 2006 SI 2914

11:50  Report of the Head of Finance & Procurement (PF13)

The report updates the Committee on the regulations. 

The Committee is RECOMMENDED to:

(a)       note the report; and

(b)       support the single payment option referred to in paragraph 10 of the report.  

14.             The Local Government Pension Scheme (Benefits, Membership and Contributions) Regulations 2007

12:00  Report of the Head of Finance & Procurement (PF14)

The report sets out the provisions of recently issued Benefit, Membership and Contribution Regulations and updates the Committee on the proposals in the draft administration regulations.

The Committee is RECOMMENDED to note the report.

15.             The Local Government Pension Scheme – Communication Policy

12:15  Report of the Head of Finance & Procurement (PF15)

The report reviews the current policy.

The Committee is RECOMMENDED to note the report.

16.             Admission Agreements

12:25  (a)       Oxfordshire Community Development Agency

This small admitted body went into administration at the end of 2006. Since being advised of this, there have been discussions with the administrators to get the up-to-date pay and employment information for individual scheme members.  This information has now been received and the data is being processed so that a closure valuation can be undertaken.

(b)       Vale / Capita   

The Committee is advised that the admission agreement has now been signed and finalised.

The Committee is RECOMMENDED to note the report.

17.             Annual Pension Forum

12:35  The Head of Finance & Procurement will report orally on any issues arising from the last Pension Forum held in November 2006.  It is suggested that the next Forum be held on 4 December 2007.

The Committee is RECOMMENDED to note the report and to agree the date for the next Forum.

18.             Corporate Governance and Socially Responsible Investment

12:40  The Head of Finance & Procurement 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.