Agenda and minutes

Apologies were received from Peter Cartwright, Richard Scott, Julian Wilson, Carolan Dobson and Mark Preston.

To declare any personal and prejudicial interests

None.

of the meeting held on 16 June 2011 to  be confirmed

The minutes of the meeting held on 16 June 2011 were agreed as a correct record.

Report from Julie Edwards, Pensions and Investments Manager.

Members received the report of the Head of Finance and Commercial Services.

The Statement of Investment Principles is reviewed periodically by the Committee and the Funding Strategy Statement is reviewed every three years following the triennial valuation and investment strategy review.

The Committee was asked to agree

·           A limit of 5% on contributions to single partnerships and a limit of 12% on all contributions to partnerships until 30 September 2014.  Currently the limit on contributions to all partnerships is 5%.

·           A limit of 35% on the amount of investments in units or shares managed by one body, until 30 September 2014.

The main changes to the SIP were highlighted in paragraphs 13 and 16 relating to the value of the Pension Fund at 31 March 2010 and the estimated risk which had increased from 13% to 15% due to the volatility in the financial markets.

With regard to Principle 1: Effective Decision Making a member raised the issue about whether once the Police Authority no longer existed, a member of the Police Commission would need to be appointed to the Committee.  The member also raised the issue of the status of schools becoming academies and their involvement in the LGPS.  The Pensions and Investments Manager stated that it was considered that school administration staff would be eligible for the LGPS and would continue to access the LGPS after the school becomes an academy.  The situation would continue to be monitored.

With regard to Principle 4: Performance assessment, under examples of compliance, it  was agreed to change the wording of the second sentence in the 3^rd paragraph to ‘The Committee keeps under review whether a more formal arrangement for assessments should be developed for advisers to measure cost, quality and consistency of advice received.’

RESOLVED:

The Committee APPROVED:

·           The updated Statement of Investment Principles;

·           The updated Funding Strategy Statement

·           The limit on the amount of investments in units or shares managed by one body by 35% until 30 September 2014

·           A limit on contributions to partnerships of 12% and a limit of 5% of contributions to any single partnership until 20 September 2014.

Attached is the updated Forward Plan for the Pension Fund Committee

Members received and noted the updated Forward Plan for the Pension Fund Committee.

The Committee was asked to note that 29 September had been set aside for induction training at a time and venue to be confirmed.  The training was likely to last from 10.00am to 3.00pm.

Action:  Clerk

Information on the LGPS Conference on 13 October would also be circulated as a reminder to members.

Action: Pensions and Investments Manager

The next meeting of the Pension Fund Committee will be held on Thursday 27 October at 10.00am in Mezzanine Room 3, County Hall.

Dates of future meetings

The next meeting of the Pension Fund Committee will be held on Thursday 27 October at 10.00am in Mezzanine Room 3, County Hall.

Dates of future meetings

Discussion took place on whether the Committee should continue to meet in August.  It was agreed that members would be contacted to ask whether they wished to continue to meet in August or whether the meeting should be put back to September.

Action:  Clerk

(Addendum, The majority of members agreed that the August 2012 meeting should be moved to 13 September 2012)

To resolve to exclude the press and public as the following item is exempt by virtue of Paragraph 3 of Part 1 of Schedule 12a of the Local Government Act 1972 because it contains information relating to the financial or business affairs of any particular person (including the authority holding that information)

RESOLVED

That the press and public be excluded for the following item which is exempt by virtue of Paragraph 3 of Part 1 of Schedule 12a of the Local Government Act 1972 because it contains information relating to the financial or business affairs of any particular person (including the authority holding that information)

of the meeting held on 16 June 2011, to be confirmed

The confidential minutes of the meeting held on 16 June 2011 were agreed as a correct record.

Report from Julie Edwards, Pensions and Investments Manager

Members received the report of the Head of Finance and Commercial Services on Fund Managers’ performance to 30 June 2011.

Members discussed the current status of the building industry and the fact that whilst there was a certain amount of building, it was difficult to find people to lease them. A member stated that the building industry was still in recession with no industrial building going on.

The Committee commented on and NOTED the performance of the Pension Fund’s fund managers for the second quarter of 2011, ending 20 June 2011

Presentation by Royal London Asset Management (RLAM). 

The presentation is attached to the agenda as a separate document.

Members received a presentation from Royal London Asset Management and the Chairman welcomed to the meeting Eric Holt, Head of Credit, Bradley Mitchell, Equity Fund Manager and James Stoddart, Client Service Director.

The presentation covered

·           Investments in the portfolio,

·           Fund performance over the last 12 moths and since inception, as well as recent activity.

·           RLAM’s philosophy and approach.

·           Value in the Bond market

·           The outlook for fixed interest markets in 2011

The Chairman thanked the officers from RLAM for their presentation.

Presentation by Royal London Asset Management (RLAM).

The presentation is included in the RLAM document attached to the agenda separately.

Bradley Mitchell, Equity Fund Manager from RLAM gave a presentation on their view of the Equities Market.

Members discussed the presentation and expressed satisfaction with the strategy of RLAM

Presentation by Mercer

This Item was discussed prior to Item 10 on the agenda.

Members received the report presented by Mercers on the role of a ‘swing’ manager, whose remit was to keep the Fund’s total asset allocation broadly in line with the benchmark, which would ensure the agreed level of investment risk.  Discussion took place on the concept of having a swing manager and it was agreed that Mercers would produce a further report giving several variations for members to consider.