Agenda and minutes

Councillor David Wilmshurst attended for Councillor Sandy Lovatt and apologies were received from Councillors Bill Service and Les Sibley.

Councillors Fooks, Lilly and Owen each declared personal interests as members of the Pension Fund Scheme under the provisions of Section 18 of the local Government Act 1989.

To approve the minutes of the meeting held on 4 September 2015 (PF3) and to receive information arising from them.

The Minutes of the meeting held on 4 September 2015 were approved and signed.

There were no Matters Arising.

There were no petitions submitted or requests to make a public address.

10:05

The report (PF5) updates members on the key operational issues arising around individual employer members of the Fund, including the latest performance data. It also includes updates on applications for admissions for admission to the Fund and details of any cessation issues.

Please note that Annex1 to the report will be circulated as part of an Addenda at the meeting and a colour copy will be tabled for members of the Committee at the meeting itself.

The Committee is RECOMMENDED to:

(a)  note the performance of scheme employers in making required returns;

(b)note the number of annual benefit statements issued and to advise officers of any further actions they want taken to resolve non-return of data;

(c)  note the benchmarking data;

(d)agree a write off of £97.33;

(e)  note the previous applications for admission to the fund & those applications approved by Service Manager (PIMMS);

(f)   agree admission of the School Lunch Company in respect of schools listed; and

(g)note the progress made in respect of closure valuation.

The Committee had before them a report (PF5) which gave an update on the key operational issues arising around individual employer members of the Fund, including the latest performance data. The report also included updates on applications for admissions to the Fund and details of any cessation issues; write off’s; the project to reconcile GMPs and results of the 2015 CIPFA benchmarking.

Sally Fox gave an update stating that as at 30 November 2015, 65% of annual benefit statements for active scheme members, had been issued and therefore it would be necessary to make further reports to The Pension Regulator. The Chairman reported that he and the rest of the Committee had been mindful of the situation occurring, adding that now there were in excess of 200 member organisations as against approximately 80 just a few years ago. He stated that he had spoken to Sally’s Team who were doing exceptionally good work, but unfortunately the accurate data which the Team had been requesting from employer organisations had not been forthcoming in some cases.

RESOLVED to:

(a)  note the performance of scheme employers in making required returns;

(b)  note the number of annual benefit statements issued and to advise officers of any further actions they want taken to resolve non-return of data;

(c)  note the benchmarking data;

(d)  agree a write off of £97.33;

(e)  note the previous applications for admission to the fund & those applications approved by Service Manager (PIMMS);

(f)   agree admission of the School Lunch Company in respect of schools listed; and

(g)  note the progress made in respect of closure valuation.

10:30

The report (PF6) updates the Committee on future collaborative arrangements following on from announcements made by the Chancellor of the Exchequer on the requirement of Local Government Pension Schemes’ (LGPS) funds to identify arrangements for future collaboration. There will be an oral report on the Government consultation papers on the subject if these have been published by the time of the meeting.

The Committee is RECOMMENDED to formally explore the option of joining the 8 funds in the South West (and others as agreed) to develop a proposal for future pooling arrangements in response to the Government’s requirements.

The Committee considered a report (PF6) which gave an update on future collaborative arrangements following on from announcements made by the Chancellor of the Exchequer on the requirement of Local Government Pension Schemes (LGPS) funds to identify arrangements for future collaboration.

Following a full discussion it was RESOLVED: (on a motion by Cllr Richard Langridge and seconded by Cllr Nick Hards) to

(a)  formally explore the option of joining the 8 funds in the South West (and others as agreed) to develop a proposal for future pooling arrangements in response to the Government’s requirements; and

(b)  set up a special meeting of this Committee to agree the initial submission to the Government which is due on 19 February: this meeting will take place on or around 29 January 2016 and members of the Local Pension Board be invited to be present.

10:45

The report (PF7) sets out the proposed team structures for the Pensions Investment & Administration Teams in the light of the recent changes within the Council and the new pressures facing Pension Services.

The Committee is RECOMMENDED to agree the proposed team structures, as set out at Annex 2 to this report.

The Committee considered a report (PF7) which set out the proposed team structures for the Pensions Investment & Administration Teams in the light of the recent changes within the Council and the new pressures facing Pension Services.

RESOLVED: to agree the proposed team structures, as set out at Annex 2 to the report.

11:00

The report (PF8) sets out the key tasks facing this Committee over the next year, and invites Members to consider the timescales for addressing these issues and the proposed role for the newly established Local Pension Board.

The Committee is RECOMMENDED to:

(a)  determine its work programme for 2016 based on the draft programme contained in paragraph 17; and

(b)determine those aspects of the programme it wishes the Local Pension Board to consider in advance of the presentation to the Committee meeting itself.

Members considered a report (PF8) which set out the key tasks which faced the Committee over the next year, and which invited Members to consider the timescales for addressing these issues and areas which could be usefully considered in depth by the newly established Local Pension Board.

On the subject of the Training Plan, to be considered at the March 2016 meeting, the Committee recognised that training was very much a shared responsibility and was keen to identify the areas which would be of most benefit to members. An area which was identified at this meeting was that of high carbon risk investments and they asked that the offer from Baillie Gifford to present a session on this subject be taken up.  

RESOLVED: to

(a)  agree the list set out at Paragraph 17 of the report, ie:

(b)   invite the Local Pension Board to initially consider the issues of collaboration and employer management (including employer communications), with further work to be undertaken on risk management following the Committee’s review of the current arrangements at their March meeting.

11:30

Each year the Pension Fund Committee considers the arrangements for monitoring the performance of its Fund Managers. The report (PF9) sets out a proposed schedule for 2016-17 based on last year’s agreement that each Manager should attend Committee on an annual basis.

The Committee is RECOMMENDED to approve the Fund Manager Monitoring Arrangements for the year 2016-17 as set out in the report.

The Committee considered a proposed schedule for 2016-17 based on last year’s agreement that each Manager should attend the Committee on an annual basis (PF9).

RESOLVED: to approve the Fund Manager Monitoring Arrangements for the year 2016/17 as set out in the report.

11:35

The Pension Fund Committee is required to establish, review and publish its policy concerning pension scheme communications with all stakeholders. Whilst the communication policy was presented at the prevous meeting, it is relevent to re-present  elements which may alter the terms of the current strategy and its delivery.  

The report (PF10)seeks guidance on employer engagement and review of the employer's forum; and seeks approval for the adoption of a recognisable symbol for the Pension Fund. Additionally the report refers to changes in method of communication, needing consideration in order to adopt the disclosure regulations and move to members self service system.  

The Committee is RECOMMENDED to: 

(a)  confirm any changes to be made to the Strategy concerning:

(i)   guidance from the committee on the employer forum including rescheduling for January or February next year to include details of the end of year data requirements; and 

(ii)  changes to the policy to enable adoption of member self service; and

(b)approve a logo for this fund.

The Pension Fund Committee is required to establish, review and publish its policy concerning pension scheme communications with all stakeholders. Whilst the communication policy had been presented at the previous meeting, it was relevant to re-present elements which might have altered the terms of the current strategy and its delivery.

The report (PF10) sought guidance on employer engagement and to a review of the employer’s forum; and also sought approval for the adoption of a recognisable symbol for the Pension Fund. The report also required consideration of possible changes in the method of communication, in order to ensure compliance with the disclosure regulations and facilitate a move to a members’ self - service system.

Following a discussion it was

RESOLVED to ask the officers to convey to the employers the disappointment of the Committee at the lack of interest in the annual Pension Fund Forum, particularly in light of the important and significant changes that are currently occurring in this area; and to 

(a)  agree that it is this Committee’s view that employers should be mindful of their duties in keeping up to date with issues and information relating to pensions of their employees and thus to request the Local Pension Board to look at ways in which this problem could be addressed, and to report back to the Committee with a view to changes being made to the Strategy;

(b)  make changes to the policy to enable the adoption of self service; and

(c)  choose the first image of the snake’s head fritillary as the logo for Oxfordshire’s Fund.

11:40

Tables 1 to 5 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, present an overview of the Fund’s position as at 30 September 2015, and highlight any key performance issues, with reference to the following tables:

In addition to the above tables, the following graph has been included:

Graph 1          Market value of the Fund over the last three years

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 14, 15, 16 and 17 on the agenda.

EXCLUSION OF PRESS AND PUBLIC

The Independent Financial Adviser reviewed the investment activity during the past quarter and presented an overview of the Fund’s position as at 30 September 2015.

Mr Davies pointed out that the overall value of the Fund had fallen by £63m at the end of September. He reported however, that since then the Fund had recouped £60 - £65m.

RESOLVED: to receive the tables and graphs and that the information contained in them be borne in mind insofar as they related to Items 13, 14, 15, 16 and 17 on the agenda.

The Committee is RECOMMENDED that the public be excluded for the duration of items  13, 14, 15, 16 and 17 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 item 14, there is no report circulated with the Agenda. Any exempt information will be reported orally.

The Committee RESOLVED that the public be excluded for the duration of items 13,14,15,16 and 17 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 the circumstances of each case, the public interest in maintaining the exemption outweighed the public interest in disclosing the information.

11:45

This report of the Independent Financial Adviser (PF13) sets out an overview of the current and future investment scene and market developments across various regions and sectors; and provides the context for the consideration of the reports from the Fund Managers. 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 of the Independent Financial Adviser (PF13) which gave an overview of the current and future investment scene and market developments across various regions and sectors. The report itself did not contain exempt information and was available to the public.

The public was excluded during this item because its discussion in public was 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.

RESOLVED: to receive the report, tables and graphs and to bear the Independent Financial Adviser’s conclusions in mind when considering the Fund Managers’ reports.

11:55

(1)          The Independent Financial Adviser will report orally on the performance and strategy of Adams Street drawing on the tables at Agenda Items 11 and 13.

(2)          The representatives (Ana Maria Harrison and Sergey Sheshuryak) 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 2015;

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

In support of the above is their report for the period to 30 September 2015.

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 Independent Financial Adviser reported orally on the performance and strategy of Adams Street drawing on the tables at Agenda Items 11 and 13.

The representatives, Ana Maria Harrison and Sergey Sheshuryak presented their approach to investments in relation to their part of the Fund and their strategy against the background of the current investment scene. They also gave their views on the future investment scene.

At the end of the presentation they responded to questions from members.

The public were 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.

RESOLVED: to note the main issues arising from the presentation.

12:35

The report from the Independent Financial Adviser (PF15) reviews the private equity investments within the Fund.

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, question and to comment on the report.

The Committee considered a report from the Independent Financial Adviser (PF15) which reviewed the private equity investments within the Fund.

The public were 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.

RESOLVED: to note and to accept the advice of the Independent Financial Adviser as set out in the report.

12:50

The Independent Financial Adviser will report on the officer meetings with UBS and Wellington, as well as update the Committee on any other issues relating to the Fund Managers not present, including issues in respect of the Private Equity portfolio (PF16).

 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 report and to take any necessary action, if required.

The Independent Financial Adviser reported on the officer meetings with UBS, Wellington and Insight in conjunction with information contained in the tables (PF16).

Discussion on this item is the subject of an exempt Minute.

The public was excluded during this item because its discussion in public was 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.

RESOLVED: to note the main issues arising from the report and from his oral report to the meeting.

12:55

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. 

The Independent Financial Adviser reported that no further summary was required.

ITEM FOLLOWING THE RE-ADMISSION OF THE PRESS AND PUBLIC

13:00

This item covers any issues concerning Corporate Governance and Socially Responsible Investment which need to be brought to the attention of the Committee.

As part of a discussion about the Fossil Fuel lobby, the Chairman confirmed the previous stated position of the Committee ie that this Committee maintains a watchful brief and is mindful of opinions expressed by members of the public, but at the same time it must adhere to the guidance laid down by the Local Government Pension Scheme and associated case law.  Furthermore, the Committee’s first duty is to attain the best value possible for the 540,000 + people belonging to the Oxfordshire pension scheme. He added that the officers had been requested to quantify out of the total asset allocation how much is in fossil fuel investment.

Following a request from a member of the Committee it was RESOLVED that Baillie Gifford would be asked to come and talk to the Committee about investment issues in relation to climate change as well as that of fossil fuel investment.