Contact: David Wilson, ext 7407

1 Introduction

1.1 In July 2002, the Panel considered a report on the Myners principles for the management of defined benefit schemes. The first of these, on `effective decision-making', includes the following recommendations:

· Where trustees elect to take investment decisions, they must have sufficient expertise and appropriate training to be able to evaluate critically any advice they take.

· Trustees should assess whether they have the right set of skills, both individually and collectively ............ to carry out their role effectively.

1.2 To comply with this principle, the Panel approved a business plan for the Fund in November 2002, which was last revised at the Panel's meeting on 23 November 2004. This includes the following:

The Panel aims to keep abreast of all developments affecting the Local Government Pension Scheme by undertaking training and/or taking advice when necessary from external fund managers, external consultants and County Council officers.

1.3 Accordingly, bespoke sessions for the Panel were arranged by the County Treasurer, which were presented by one of the Fund's managers, Deutsche, and by Capital International, another highly respected investment management firm, who manage portfolios for a number of other local authorities. Panel members have also been given details of other relevant courses.

1.4 However, training now needs to be made available where appropriate for both of the new representatives, and this also applies to the new Panel members nominated by the County Council. Those past Panel members who are continuing to serve following the recent elections may also wish to consider their ongoing training requirements. An updated list of training opportunities in 2005 is shown in Appendix 1 to this report.

1.5 It is recommended that all new Panel members should attend the Local Government Pensions Committee's (LGPC) course (`LGPS Fundamentals 2005'). This course is a course specifically designed for elected members with responsibility for local authority pension funds. It is a three-day course presented annually by the LGPC, and details are attached at Appendix 2. Members can enrol on the course directly, or contact the County Treasurer, who will be pleased to make the necessary arrangements.

1.6 The County Treasurer will report back to the Panel in a year's time on training progress.

Recommendations

1 That all Panel members consider the training options set out in the Appendices 1 and 2 and pass their requirements to the County Treasurer, who will make the necessary arrangements.

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

None.

Appendix 1

List of courses and seminars currently available

LGPS Fundamentals

Supplier: Local Government Pensions Committee

Officially approved by the Office of the Deputy Prime Minister

Full course takes 3 days

Annually

London

17 October 2005 (day 1)

7 November 2005 (day 2)

29 November 2005 (day 3)

Courses also being held in Cardiff, Edinburgh and Leeds - dates available on request.

Subject matter: duties and responsibilities of Panel members, changes to and future of the Local Government Pension Scheme, portfolio construction, risk and diversification, manager selection, managing relationships with managers. Specifically designed for councillors responsible for local government pension funds.

Local Authority investment training

Supplier: National Association of Pension Funds

One-day course

London

Two courses a year - 2005 dates to be announced

Subject matter: Local Government Pension Scheme legal background, investment powers, asset allocation and characteristics of asset classes, hiring and firing managers, corporate governance, environmental and ethical issues.

NAPF will also deliver tailor-made courses for individual county councils.

A selection of regular courses is also offered by the NAPF, including courses on trustees' duties and investment fundamentals. Dates for 2005 have not yet been fixed.

Local Government Chronicle - members' role in pensions seminar

Supplier: Local Government Chronicle

One-day seminar

Usually London

May 2005? - date to be announced

Subject matter: market outlook, performance measurement, discussion forum, the actuary's role, the Treasurer's role.

Trustees' essentials

Supplier: Hewitt Bacon & Woodrow

One-day course

London

7 July 2005

Later 2005 dates to be confirmed

Subject matter: trustees' duties and responsibilities, trust law and pensions law, basics of investment management, risk management. Aimed at pension trustees generally. Some aspects may not be applicable to the Local Government Pension Scheme.

Current investment issues

Supplier: Hewitt Bacon & Woodrow

Half-day course

London

2005 dates to be determined

Subject matter: alternative investments (hedge funds, private equity), investment strategies, risk management, portfolio construction.

Managing investments

Supplier: Hewitt Bacon & Woodrow

Half-day course

London

8 June 2005

Later 2005 dates to be determined

Subject matter: Statements of Investment Principles, monitoring investments and their performance, meetings with fund managers, performance criteria, custody and governance, portfolio structure.

Fund management overview

Supplier: Investment Education plc

Three-day course

London

22-24 June 2005

19-21 September 2005

28-30 November 2005

Subject matter: fund management in detail, including the opportunity to manage a simulated portfolio.

Courses run by Deutsche Asset Management

Half-day seminars

Several levels - introductory, advanced and "Chairman of Trustees" courses

Specialist investment courses

London

Equity investment 24 June 2005

Liability-driven investment 15 July 2005