Archived decisions

AT A MEETING of the PENSION FUND PANEL held at The Castle, Winchester on Friday 11 May 2007.

Chairman:

a Councillor T.K. Thornber, CBE

Vice Chairman:

p Councillor M.F. Cartwright

Councillors:

p F.G. Allgood p M.N. Kemp-Gee

p B.D. Dash p A.R. Ludlow

p A.G. Dowden p J.J.W. Maxwell

p P.R.C. Hutcheson

Co-opted members:

p Councillor I.R. Carr (Test Valley Borough Council)

p Councillor J. Moulton (Southampton City Council)

p Mr E.W. Hughes (pensioners' representative)

p Mr P Reynolds (employee representative)

Independent adviser:

p Mr H. Cole.

138 APOLOGIES FOR ABSENCE

Councillor T.K. Thornber gave his apologies as he was on County Council business. Councillor M.F. Cartwright took the chair.

139 DECLARATIONS OF INTEREST

Members were mindful that, where they believed they had a personal or prejudicial interest in any matter to be considered at the meeting, they should, normally at the time of the debate, declare their interest and, having regard to the circumstances described in paragraphs 9, 10, 11 and 12 of the County Council's Code of Conduct, consider whether to leave the meeting whilst the matter was discussed.

140 CHAIRMAN'S COMMUNICATIONS

The Chairman welcomed Mr Phillip Reynolds to his first meeting of the Pension Fund Panel who replaced Mr Offord as the employee representative (see report relating to Minute no. 143).

The Chairman announced that the Panel's meeting on Friday, 25 May 2007 would extend into the afternoon so that the firms shortlisted for the position of the adviser on alternative investments could make presentations to the Panel. Councillors A.G. Dowden and I.R. Carr reported that they would be unable to attend this meeting.

141 DEPUTATIONS

No deputations were received.

142 MINUTES

The Minutes of the meeting held on 17 November 2006 were confirmed as a correct record and signed by the Chairman.

Matters arising thereon:

Investment Matters - Update Including Recent Performance Returns (Exempt) (Minute 136)

The County Treasurer reported on further developments with the alternative investments portfolio. The Sub Group on Alternative Investments had confirmed a £7.5m investment in SVG Capital Strategic Recovery Fund II. Approval in principle was given to considering co-investment opportunities in private equity and infrastructure funds, subject to the business case for each investment, due diligence and the outcome of the tendering exercise for alternative investment adviser arrangements.

143 NEW EMPLOYEE REPRESENTATIVE

The Panel considered a report of the County Treasurer (Item 6 in the Minute Book) regarding the appointment of a new employee representative to the Panel. The nomination by UNISON of Phillip Reynolds had now been confirmed by AMICUS and the GMB. No further progress had been made on nominating a deputy employee representative.

RESOLVED:

(a) That Mr Phillip Reynolds be welcomed to the Panel.

(b) That the remainder of the report be noted.

144 MEETING WITH INVESTMENT MANAGERS - PROPOSED TIMETABLE

The Panel considered a report of the County Treasurer (Item 7 in the Minute Book) on the timetable and frequency of meetings with the investment managers. The review of investment management arrangements had resulted in an increase in the number of managers with effect from 1 January 2007. It was proposed that the frequency of the Panel's meetings with the managers should reflect the degree of risk associated with each manager's portfolio. The high performance equity managers Aberdeen, AllianceBernstein, Newton and SGAM would meet the Panel twice a year. The low risk equity managers,

Schroders in addition to Aberdeen, the global bonds manager Western, and the

property managers CB Richard Ellis and Arlington, would meet the Panel annually. The frequency of these meetings, particularly those with CB Richard Ellis and Western will be reviewed after the first year.

It was considered unnecessary for the Panel to see the UK index linked bonds managers Legal & General and State Street as their portfolios should simply track the index.

The County Treasurer would continue to meet all managers twice a year in addition to the Panel meetings and would report any matters of importance.

It was also proposed that the adviser on alternative investments, currently Bramdean on a short term contract, should meet the Panel annually in addition to reporting regularly to the Panel's sub group on alternative investments.

RESOLVED:

(a) That the Panel meets Aberdeen, AllianceBernstein, Newton and SGAM every six months, Schroders, Western, CB Richard Ellis and Arlington annually, and Legal & General and State Street not at all.

(b) That the Panel meets the adviser on alternative investments annually.

(c) That the pattern of meetings be reviewed after the first year.

145 ECONOMIC AND FINANCIAL BACKGROUND

The Panel received and noted a revised report of the Panel's adviser Mr Harvey Cole (Item 8 in the Minute Book) on the economic and financial background.

146 EXCLUSION OF PRESS AND PUBLIC

RESOLVED:

That the public be excluded from the meeting during the following items of business, as it is likely, in view of the nature of the business to be transacted or the nature of the proceedings, that if members of the public were present during that item there would be disclosure to them of exempt information within Paragraph 3 of Part 1 of Schedule 12A to the Local Government Act 1972, and further that in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information, for the reasons set out in the reports.

147 INVESTMENT MATTERS - UPDATE INCLUDING RECENT PERFORMANCE RETURNS (EXEMPT)

The Panel considered an exempt report of the County Treasurer (Item 10 in the Minute Book) on the performance of the Fund's former investment managers up to the transition to the new investment management arrangements in December 2006 and the performance of the new managers from 1 January 2007.
[SUMMARY OF A MINUTE WHICH CONTAINS EXEMPT INFORMATION]