Agenda and minutes

Councillor David Harvey was elected Chairman and Councillor Bill Service, Deputy Chairman, for the ensuing year.

Councillor Alan Armitage attended in place of Councillor Jean Fooks.

Councillors Armitage, Darke, Harvey, Lilly, Patterson (co-opted member) and Service declared personal interests as members of the Pension Fund Scheme under the provisions of Section 18 of the Local Government & Housing Act 1989.  

To approve the minutes of the meeting held on 18 March 2011 (PF4) and to receive for information any matters arising on them.

The Minutes of the meeting of the Committee held on 18 March were approved and signed as a correct record subject to Councillor John Tanner’s name being erased from Minute 1/11.

10:30

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 2011 using the following tables:

In addition to the above tables, the performance of the Fund Managers over the past 18 months has been produced graphically as follows:

Graph 1 – Value of Assets

Graph 2 - Alliance Bernstein

Graph 3 - Baillie Gifford

Graph 4 – Legal & General

Graphs 5 and 6 – 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 9, 10 and 11 on the agenda.

The Committee was advised that Tables 1 to 10 had been compiled from the custodian’s records. The custodian was the Pension Fund’s prime record keeper. He had accrued for dividends and recoverable overseas tax within his valuation figures and might also have used different exchange rates and pricing sources compared with the fund managers. The custodian had also treated dividend scrip issues as purchases which the fund managers might not have done. This might mean that there were minor differences between the tabled figures and those supplied by the managers.

Mr Davies reported that the valuation of the Pension Fund had ended slightly below the end of March value. Bond yields had fallen to 0.7% below the benchmark and equity values had fallen by 1.5%. However, the fund had beaten its benchmark by 0.8% in the first quarter and by 0.6% for the year.

RESOLVED: to note the comments of the Independent Financial Adviser and to receive the tables and graphs and that the information contained in them be borne in mind insofar as they related to Items 9, 10 and 11 in the Agenda.

The Committee is RECOMMENDED that the public be excluded for the duration of items 8, 9, 10, 11 and 12 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 11 and 12, there are no reports circulated with the Agenda. Any exempt information will be reported orally.

It was RESOLVED that the public be excluded for the duration of items 8, 9,10,11 and 12  in the Agenda since it was likely that if they were present during those items there would be disclosure of exempt information as defined in Part 1 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 was considered that, in all circumstances of each case, the public interest in maintaining the exemption outweighed the public interest in disclosing the information.

10:40

Report of the Independent Financial Adviser (PF8).

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.

The Committee considered a report (PF8) which set out an overview of the current and future investment scheme and market developments across various regions  and sectors. Members asked questions and the Independent Financial Adviser responded to them.

It should be noted that since the meeting, the Financial Adviser had corrected ‘Algeria’ to ‘Tunisia’ in line 3, paragraph 4 of his report.

It was RESOLVED to receive the report, tables and graphs, to receive the oral report of the Independent Financial Adviser and to bear these comments in mind when considering the reports of the Fund Managers.

10:55

(1)               The Independent Financial Adviser will report orally on the performance and strategy of Alliance Bernstein drawing on the tables at Agenda Items 6 and 8.

(2)               The representatives (Mr J Cloke and Mr D Blass) 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 2011;

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

In support of the above is their report for the period to 31 March 2011.

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.

The representatives (Mr D.Blass and Mr J.Cloke) reported and reviewed 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 2011. The representatives responded to members’ questions.

It was RESOLVED to note the main issues arising from the reports.

11:30

(1)               The Independent Financial Adviser will report orally on the performance and strategy of UBS drawing on the tables at Agenda Items 6 and 8.

(2)               The representatives (Mr S Lee together with a representative from the Hedge Funds) 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 2011;

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

In support of the above is their report for the period to 31 March 2011.

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.

The representatives (Mr. S. Lee, Mr T. Bell, Mr A. Sander and Mr. D. Rowe) reported and reviewed 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 2011. The representatives responded to Members’ questions.

It was RESOLVED to note the main issues arising from the reports.

12:05

The Independent Financial Adviser will report orally on the main issues arising from the Officer meetings with the Fund Managers not represented at the Committee in conjunction with information contained in the tables (Agenda Item 6).

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.

The Independent Financial Adviser reported that Baillie Gifford had performed very well.

The Committee RESOLVED to note the Independent Financial Manager’s oral report.

12:10

The Independent Financial Adviser will, if necessary, any other issues arising from the monitoring of our Fund Managers, including any update in respect of the change in Fund Manager as agreed at the 18 March Committee.

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. 

It was RESOLVED to note the Independent Financial Manager’s oral report and that the interview process for the appointment of the new Global Equities Manager be managed by Mr Collins, in consultation with the Chairman.

READMITTANCE OF THE PRESS AND PUBLIC

12:15

This report  (PF13) identifies the key issues arising from HM Treasury's consultation document on the future of the Fair Deal Policy and sets out a draft response to Government for agreement by this Committee.

The Committee are RECOMMENDED to consider the report and the draft response as set out at Annex 1; and agree any amendments so that the response can be submitted to HM Treasury by their deadline of 15 June 2011.

The Committee considered a report (PF13) which identified the key issues arising from HM Treasury’s consultation document on the future of the Fair Deal Policy and which set out a draft response to Government for agreement by this Committee.

The Committee APPROVED the draft response, as set out at Annex 1, for submission to HM Treasury by the 15 June 2011 deadline.

12:30

This report (PF14) informs the Committee of the project to re-brand the Oxfordshire Pension Fund and seeks Member approval for the way forward.

The Committee is RECOMMENDED to:

(a)               decide whether the project is to proceed;

(b)               if it is to proceed, to decide the process for consultation with Members in relation to the proposed logo designs; and

(c)               determine maximum budget provision for this project.

The Committee had before them a report (PF14) which gave details of the project to re-brand the Oxfordshire Pension Fund and which sought Member approval for the way forward.

The Committee RESOLVED to request the officer to revisit the possibility of re-branding the Fund at a lower cost on an internal basis and to report the outcomes back to a future meeting.

12:40

The report (PF15) informs the Committee of issues in respect of over payment of pensions arising from incorrect information held by Pension Services regarding guaranteed minimum pensions; and seeks Member approval to the way forward.

The Committee is RECOMMENDED to determine whether these over payments should be recovered from pensioners.

The Committee considered  a report (PF15) which set down the issues relating to the over payment of pensions arising from incorrect information held by Pension Services concerning guaranteed minimum pensions and which sought Member approval to the way forward.

Also before the Committee was ANNEX 1 and 2 to report PF15.

The Committee RESOLVED not to recover the over payments from the pensioners and to request the officer to inform them accordingly.

12:50

As required under its provisions, the Communications Policy is before the Committee for its annual review (PF16). Copies of the Community Policy Statement and the Policy are attached at PF16 Annexes 1 and 2.

The Committee is RECOMMENDED to endorse the officer recommendation of no change to the current policy.

As required under its provisions, the Communications Policy was before the Committee for its annual review (PF16). Copies of the Communication Policy Statement and the Policy itself were attached at PF16 Annexes 1 and 2.

The Committee RESOLVED that there should be no change to the current policy.

12:55

The report (PF17) informs the Committee of the amounts approved for write off under the Fund’s Scheme of Financial Delegation.

The Pension Fund Committee is RECOMMENDED to note this report

The Committee had before them a report (PF17) which informed the Committee of the amounts approved for write off under the Fund’s Scheme of Financial Delegation.

The Committee noted the report.

13:00

The Assistant Chief Executive & Chief Finance Officer has no other issues 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 noted that there was nothing further to report on this item.