Contact: Jon Pittam, ext 7400

1. Introduction

1.1 Attached is a possible plan for future Panel meetings developed from discussions at the last Panel meeting.

1.2 This is slightly different to the initial suggestion at the last Panel to fit in with performance results and logistical arrangements. However it is consistent with the emerging view that meetings should be held in Winchester with meetings with the main managers separated from other business.

2. Proposal

2.1 The proposal is that the Panel would see Deutsche, Schroders and SGAM twice a year, in May and November, with no other business on the agenda. The Panel would see Savills once a year only, in May, when it would also consider the IPD performance figures for the previous calendar year and review the size of the property portfolio.

2.2 Other business of the Panel would be dealt with at a second meeting in November (if needed) and at the meeting in May with Savills. This would limit the number of Panel meetings to a maximum of four per annum. By having two meetings in both November and May, rather than four meetings at roughly quarterly intervals, the possible pressure for the "manager-only" meetings to have urgent other business tacked onto them would be reduced. Similarly, it would not be necessary for members to have a further performance update at the "business-only" meetings.

2.3 Seeing all three managers on the same day would enable the Panel to compare and contrast all three managers more easily than under the two-per-meeting / three-times-a-year proposals suggested at the last Panel. Those proposals included seeing the "worst" performing manager at a third meeting, along with Savills. That worst performing manager would have to be identified some time in advance as the manager would require a reasonable period of notice to ensure that their key representatives are able to attend. In the meantime, their performance results could improve, undermining the purpose of the meeting.

2.4 If the Panel wish to spend an hour with each manager, the meeting would probably have to continue into the afternoon. The timetable could be:

10:00 - 10:30 Briefing

10:30 - 11:30 Manager 1

11:30 - 12:30 Manager 2

12:30 - 2:00 Lunch

2:00 - 3:00 Manager 3

2.5 It could be squeezed into a morning only with a 9:30 start for the briefing, with the last session with the managers ending at 1:00.

2.6 The Appendix sets out a possible timetable.

Recommendation

The Panel consider whether the draft proposal meets their wishes and to agree or amend the proposals in the Appendix accordingly.

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:

Published works.

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

TITLE FILE

None

Appendix

Panel Meetings - Possible Timetable

November 2003 - date already fixed

Half-yearly meeting with Deutsche, Schroders and SGAM only.

Supporting report from County Treasurer on managers' policies and performance

Comments from Harvey Cole

No report on property

No other business

Late November 2003 - to be fixed

Future management of the ethical portfolio

Pensioner and contributor representatives - current arrangements expire in March 2004

Any other issue arising that affects the Pension Fund

Annual reviews of:

Business Plan

Training Plan

Managers' fees

Transaction costs

Soft commission (if any)

Mid May 2004 - to be fixed

Half-yearly meeting with Deutsche, Schroders and SGAM only.

Supporting report from County Treasurer on managers' policies and performance

Comments from Harvey Cole

No report on property

No other business

Late May 2004 - to be fixed

Annual meeting with Savills on property

Supporting report from County Treasurer on property issues including performance data from IPD for year to 31 December 2002

Annual review of size of property portfolio

Any other issue arising that affects the Pension Fund

Annual review of Statement of Investment Principles - needs to be before the publication of the Annual Report and the AGM in September.

In 2005, the late May meeting would also consider the outcome of the actuarial valuation at 31 March 2004, together with the subsequent asset/liability study and any proposed changes to the Fund's benchmark asset allocation.