Meeting documents

Pension Fund Committee
Friday, 23 May 2003

PF230503-03c

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ITEM PF3(c)

PENSION FUND MANAGER (APPOINTMENTS) SUB-COMMITTEE

Minutes of the Meeting held on 4, 10, 15, 16 and 17 April 2003

Present:

Voting Members:

Councillor Dickie Dawes
Councillor Richard Farrell
Councillor Barbara Gatehouse

District Council Representatives:

City Councillor Jean Fooks

Officers:

Whole of meeting: B. Phillips and T. Wheeler (Resources)

Part of meeting: C. Gray (Resources); J. Dean and M. Leeding (Chief Executive’s Office).

By Invitation:

Mr A. Bushell (Independent Financial Adviser)
Mr O. Cassin (bfinance)
Mr V. McEntegart (Hymans Robertson)

The Sub-Committee considered the matters, reports and recommendations contained or referred to in the agenda for the meeting, together with the following additional documents:

  • background support papers relating to the shortlisted managers for all mandates; and

  • Fund Managers’ Assessment Grids and accompanying guidance notes covering the seven listed assessment categories;

and decided as set out below. Except insofar as otherwise specified, the reasons for the decisions are contained in the agenda and additional documents, copies of which are attached to the signed Minutes.

    1/03. ELECTION TO CHAIR

    RESOLVED: that Councillor Farrell (Liberal Democrat) be elected as Chair of the Sub-Committee.

    2/03. ELECTION TO DEPUTY CHAIR

    RESOLVED: that Councillor Dawes (Conservative) be elected as Deputy Chair of the Sub-Committee.

    3/03. TERMS OF REFERENCE

    (Agenda Item 5)

    Following an asset liability study for the Pension Fund, which was carried out in early 2002, the Pension Fund Committee appointed Hymans Robertson to carry out a review of the Fund’s investment management arrangements. As a consequence of this review, the Committee decided to move from two balanced fund managers to a specialist structure, comprising five mandates.

    RESOLVED: to note the Terms of Reference as set out on the Agenda.

    4/03. EXEMPT ITEMS

    RESOLVED: that the public be excluded during the consideration of item 7E in the Agenda since it was likely that if they were present during that item 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 the item in the Agenda, i.e. information relating to the financial or business affairs of any particular person (other than the authority),.

    PROCEEDINGS FOLLOWING THE WITHDRAWAL OF PRESS AND PUBLIC

    5/03.     APPOINTMENT OF PENSION FUND MANAGERS*

    (Agenda Item 7E)

    In accordance with their remit, the Sub-Committee interviewed the following shortlisted managers for the five specialist mandates:

    1. Multi-Assets

      2. (Interviews took place on 4 April)

      UBS Asset Management: Mr M. Stemp and Mr P. Fairbrother

      Fidelity: Mr M. Hammond, Mr M. Hodges and Mr A. Veys

      Capital International: Mr K. Baker, Mr M. Brett and Mr M. Hole

    2. UK Equities

      3. (Interviews took place on 10 April)

      Baillie Gifford: Mr L. Robb and Mr I. McCombie

      UBS Global Asset Management: Mr P. Fairbrother and Mr K. Baker

      Martin Currie: Mr T. Hall, Mr J. Saunders, Mr D. Urich and Mr D. Wight

      Threadneedle Street: Mr M. Taylor, Mr S. Meech and Mr N. Burgoyne

    3. Global Equities

      4. (Interviews took place on 15 April)

      Capital International: Mr K Baker, Mr P Armitrage and Ms N Hindmarsh

      Alliance Bernstein: Mr G. Blunden and Ms S Fay

      GMO Woolley: Mr P. Woolley, Mr J. Gray and Mr A. Hene

    4. UK Fixed Interest

      5. (Interviews took place on 16 April)

      Legal and General: Mr R. Barnard-Smith, Mr J. Cloke and Ms J. Cawley

      Hermes: Mr A. Esse, Ms P. Coe, Mr M. Carter, Mr N. Mustoe and Mr T. Watson

      UBS Global Asset Management: Mr D. Jacob and Mr N. Barnes

    5. Property

(Interviews took place on 17 April)

UBS Global Asset Management: Mr C. Hawkins and Mr P. Dennis-Jones

Deutsche Property Asset Management Limited: Mr B. Hackney and Mr N. Bennett

Schroder Investment Management Limited: Mr L Bolton, Mr B Hughes and Ms J Buck

RESOLVED: (by 3 votes to 0) to

(a) (i) appoint the following companies for the future management of the Oxfordshire County Council Superannuation Fund to take effect by 1 July 2003:

Multi-Assets – UBS Asset Management

UK Equities – Ballie Gifford

Global Equities – Alliance Bernstein

UK Fixed Interest – Legal & General

(ii) with regard to the Property Mandate, to authorise the officers, in consultation with members of the Sub-Committee and the Independent Financial Adviser, to undertake negotiations with UBS Asset Management with a view to the inclusion of the Property mandate within the Multi-Assets brief;

(iii) that on receipt of the formal acceptance of the offers, the officers be authorised to complete the necessary documentation and to take any other consequent action to give effect to the above decisions;

(b) to request the officers to invite Hermes Investment Management Ltd to a future meeting of the Pension Fund Committee to give a presentation on Corporate Governance and Activism. and

(c) to thank the officers, especially Mr Wheeler and Mr Bushell, for all their hard work.

in the Chair

Date of signing 2003

* The reports relating to the exempt items have not been made public and should be regarded as strictly private to those members and officers entitled to receive them.

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