Meeting documents
Pension Fund Committee
Wednesday, 26 November 2008
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 |
|
Notes:
· A lunch will be provided
· Date of next meeting: 25 February 2009
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 27 August 2008 (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 (download as .pdf file) 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 2008 using the following tables:
Table 1 - provides a consolidated valuation of the Pension Fund at 30 September 2008;
Tables 2 to 4 - provide details of the individual manager’s 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 2008.
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 and 8E, there are no reports circulated with the Agenda. Any exempt information will be reported orally.
6.E Overview and Outlook for Investment Markets
10:40
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 Alliance Bernstein
11:10
(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 30 September 2008;
(b) give their views on the future investment scene.
In support of the above is their report for the period to 30 September 2008.
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.
8.E UBS
11:55
(1) The Independent Financial Adviser will report orally on the performance and strategy of UBS drawing on the tables at Agenda Items 5 and 6E.
(2) The representatives (Mr P Harris and Mr T Bell) of the Fund Manager 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 2008;
(b) give their views on the future investment scene.
In support of the above is their report for the period to 30 September 2008.
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
12:40
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
12:50
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
11.E Private Equity
14:00
Report of the Independent Financial Adviser (PF11E)
The report discusses the strategy for investing in private equity.
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 Hedge Funds
14:20
The Independent Financial Adviser will report orally.
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.
13.E Independent Financial Adviser - Annual Review and
Outcome of Appointment Process of new Adviser
14:25
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 2008 and reports on the outcome of the appointment process.
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. Recent Stock Market Changes: Impact on the Pension Fund
14:40
Report of the Assistant Chief Executive and Chief Finance Officer (PF14)
The report discusses the impact on the Pension Fund and potential impact on employer contributions of the recent financial turbulence in the markets.
At this stage, the Committee is RECOMMENDED to note the report, the seriousness of the potential implications, and the factors which will influence the outcome over the next 18 months.
15. Formal Adoption of the Pension Fund Annual Report
and Accounts for 2007/08
15:00
A draft of the Annual Report and Accounts was approved at the meeting of the Committee on 27 August 2008. The Committee is asked formally to adopt the Report and Accounts. A copy of the Pension Fund Annual Report and Accounts 2007/08 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 2007/08.
16. Future Programme and Timetable for Investment Manager Monitoring Arrangements
15:05
Report of the Head of Finance & Procurement (PF16) (download as .doc file).
Investment Managers either attend the Committee or see officers and the Independent Financial Adviser each quarter. The report makes proposals on which Managers will attend Committee and which Managers will meet with officers each quarter between February 2009 and March 2010. The report also proposes that the Independent Financial adviser should report periodically on Private Equity.
The Committee is RECOMMENDED to agree the programme of investment manager meetings as set out in the report.
17. Admission Bodies
15:10
At the meeting on 28 May 2008, the Committee approved an application from Emmaus to become a transferee admission body. Emmaus has now decided to withdraw its application.
The Committee is RECOMMENDED to note Emmaus’s decision to withdraw its application.
18. Beneficiaries Observer
15:15
The Committee is advised that Mrs Brenda Churchill has replaced Mr Sean Gibson as the Beneficiaries’ Observer.