Contact: David Wilson, ext 7407

1 Introduction

1.1 The Panel meets the fund managers twice each year, in May and November. Both meetings used to be held in London at the offices of one of the managers, but in recent years only the November meeting has been held in London. For example, the Panel's meeting on 14 November 2002 was hosted by SGAM, and the Panel's next meeting on 6 November 2003 is scheduled to be held at Deutsche's offices.

1.2 All other Panel meetings are held in Winchester.

1.3 This report discusses the advantages and disadvantages of holding Panel meetings in London and asks the Panel to consider whether this practice should continue.

1 Advantages and disadvantages

1.1 The main advantages of holding a meeting each year in London are:

· Panel members can see the scale and scope of the host manager's operations.

· It is easier for managers to make arrangements for different people to meet the Panel, either at the meeting or over lunch. These can be specialists in particular areas who can provide a different perspective on fund management issues.

1.2 However, there are drawbacks:

· London meetings mean an early start, with some members having to catch trains before 8am. Trains have frequently been late, and travel from the mainline station to the venue is often difficult. Late arrival at the meeting is disruptive for both the Panel member concerned and for the rest of the attendees

· Agenda papers are often bulky - in particular the managers' graphic presentations are awkward to carry.

1.3 In addition, the number of reports requiring consideration has risen significantly over the last few years. Pension schemes are subject to increasing scrutiny as a result of increased public concern about funding arrangements and investment issues. It has proven difficult to deal with these reports in addition to the sessions with the managers, particularly at the London meeting when time is already constrained by the travel arrangements.

1.4 As a result, additional Panel meetings have been arranged to deal with issues that do not require the attendance of the fund managers. There were four Panel meetings in 2002, although only two of these involved the managers. There will be at least four meetings this year, including the training sessions in Winchester arranged on 8 May and 8 July. It is likely that an additional Panel meeting will be arranged in Winchester for November 2003 to deal with other issues which should allow a more relaxed meeting with the fund managers on 6 November 2003, particularly if it is held again in London.

1.5 A further consideration is that, if the Panel decides to transfer responsibility for the ethical portfolio to one of the main managers (item 15 on this Agenda), the number of sessions with the managers at each Panel meeting will be reduced from five to four, which would permit a later start or earlier finish particularly for the London meeting.

Recommendation

1 That the Panel consider whether it should continue to hold one meeting a year in London.

Section 100 D - Local Government Act 1972 - background papers

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

NB the list excludes:

1. Published works.

2. Documents which disclose exempt or confidential information as defined in the Act.

TITLE FILE