Councillors' Attendance Statistics
Agenda and minutes
Pension Fund Committee
Tuesday, 28 September 2010 6:00 pm
Venue: Terrace Room - York House. View directions
Contact: Louise Hall, 020 8891 7813, Email: firstname.lastname@example.org
No apologies were received.
DECLARATIONS OF INTEREST
Members of the Committee are asked to declare any interests in matters appearing on the agenda.
No declarations of interest were received
To approve the minutes of the meeting held on 24 June 2010
The minutes of the meeting held on 24 June 2010 were approved as a correct record of proceedings.
To report performance, investment activity and the latest portfolio valuation.
It was AGREED that items 4 and 5 be heard together.
The Committee received a series of presentations on matters relating to the fund and its investments.
The first presentation was from Hymans Robertson and included the following:
Tamsin Frost of Schroders addressed the Committee on the subject of the fund’s investment in the Schroder Exempt property Unit Trust (SEPUT). The presentation referred in particular to the following:
In conclusion, it was reported that although there had been difficult circumstances to address, the actions taken had mitigated some potential negative effects of these.
In response to comments made and questions raised, it was reported:
Mark Fulwood and Robert Villiers of Henderson Global Investors addressed the Committee and referred, in particular, to the following:
that Henderson (as a business) was performing
strongly, having improved its position in the last year;
that in the quarter ending 30 June, the portfolio
managed for the Council had performed negatively on an absolute
basis, but relative performance was positive to the benchmark to
the extent of 0.3% in aggregate (attributable to the equity rather
than bond components of the portfolio);
the strategies that Henderson applied to add value
in the “enhanced index” (equity) funds. Value-added was targeted at 75 bps above index,
with a “tracking error” (expected variance) of 50
· the four strategies were:
all of the strategies had performed well in the
year-to-date, with the exception of Fundamental which performed
that the portfolio at year-to-date, 1-year and
3-years was outperforming the benchmark (although over 3 years,
absolute performance was still marginally negative).
In response to comments made and questions raised, the Committee heard:
To note the fund managers’ quarterly
reports, approve the proposed investment policies and agree the
fund’s overall approach to asset allocation.
See Minute 57.
The Committee received a report of the Director of Finance and Corporate Services the purpose of which was to consider the ISA 260 report prepared by the auditor in relation to the 2009/10 Pension Fund accounts, prior to the issue of the auditors’ opinion.
Leigh Lloyd-Thomas, partner at the Council’s external auditors, PKF, introduced the report and commended Council officers for producing an excellent set of accounts. He referred to the main issues raised within the ISA 260 report, which were:
In response to comments made and questions raised, the Committee heard that:
It was RESOLVED:
That the final report of the Auditor to those
charged with governance be noted.
2. That the need for the Auditor to review the Pension Fund Annual Report be noted and authority delegated to the Director of Finance & Corporate Services to make any consequential amendments required.
The Committee received a report
of the Director of Finance and Corporate Services the purpose of
which was to provide information on the audit fees for the Pension
Fund and agree the fees for the 2010/11 audit.
Chris Smith, Project
Accountant, and Mark Maidment, Director of Finance and Corporate
Services introduced the report and in particular advised the
Committee of the following:
The Committee expressed concern with the level of fees but agreed that the representations made to date were sufficient.
The Committee expressed concern
regarding the uncertainty surrounding the abolition of the Audit
It was RESOLVED:
That the issues reported be noted.
2. That the level of audit fees for 2010/11 be agreed.
The Committee received a report of the Director of Finance and Corporate Services the purpose of which was to advise members of training opportunities available to them and to introduce the recently published “Training Needs Analysis for Elected Representatives and Non-Executives in the Public Sector” (TNA), the result of a joint enterprise between CIPFA and Hymans Robertson.
Copies of the TNA were distributed to members of the Committee and its purpose explained. Members were asked to review the TNA in order to identify which of the high level subject areas it would be most useful for them to receive training in. This would then be taken into account in planning any bespoke training to be provided in the future.
It was RESOLVED:
That training opportunities be noted.
2. That TNA documents be completed and returned to officers for assessment.