Meeting documents

There were no apologies.

The Chairman welcomed to the meeting Mr Phil Gerrella who is representing Milton Keynes Council on the Committee, in place of Cec Tallack.

To declare any personal and prejudicial interests

There were none.

of the meeting held on 31 May 2007, to be confirmed.

The minutes of the meeting held on 31 May 2007 were agreed as a true record.

The Report of the Treasury Manager and Annual performance review by WM Company is attached.  A copy of the WM Performance Commentary for Buckinghamshire County Council is attached.  The WM Annual Review UK Local Authority 2006/07 will follow shortly.

Members received the report of the Treasury Manager, the purpose of which was to outline the performance of the Pension Fund for the year 2006/07.  Attached to the report was the Annual Performance Review by WM Performance Company.  A copy of the Annual Review by WM was sent out under separate cover.  The Chairman welcomed to the meeting Louis-Paul Hill from WM Performance Company.

Over the year, theFund under performed its benchmark by -0.3%.  In 2006/07 the Fund ranked in the 55^th percentile compared to 22^nd in 2005/06 and 86^th in 2004/05.  However, this the third best performance in 10 years and the trend is improving.  There will be further opportunities to improve on this during the Investment Strategy Review.

The representative from WM suggested areas where there was more opportunity to add value to overseas equities would be Japan and the Pacific.

Over last two years the Fund has performed well and has over performed the last benchmark since changes in investment have been made. 

The following was discussed:

·         The performance of the fund managers and the need to look at the amount of investment placed with each of them.

·         The fact that gross fees were included in the benchmarking figures.  Since this was the way the market compared results there was little that could be done to make changes.

·         What Funds in the top 10% were doing differently to achieve this level. It was noted that not many Funds consistently maintained this level and higher returns mean higher risks in the main.

·         Internal management of Pension Funds. It was noted that specialist managers have set targets in which to prove themselves, whereas internal managers are able to take a longer term view of investment.  The negative impact of managing funds ‘in house’ is that a successful team is more likely to move on.

The Chairman thanked Louis-Paul Hill for his report.

The next meeting of the Pension Fund Committee will be held on 20 September 2007 in the New Ireland Room.

Dates of future meetings:

The next meeting of the Committee will be held on Thursday 20 September 2007 at 9.30am in the New Ireland Room.

Members also agreed the following dates for training sessions:

11 October 2007 from 9.30am to 1.00pm

30 October 2007 from 9.30am to 1.00pm

To resolve to exclude the press and public as the following item is exempt by virtue of Paragraph 3 of Part 1 of Schedule 12a of the Local Government Act 1972 because it contains information relating to the financial or business affairs of any particular person (including the authority holding that information)

RESOLVED

That the press and public be excluded for the following item which is exempt by virtue of Paragraph 3 of Part 1 of Schedule 12a of the Local Government Act 1972 because it contains information relating to the financial or business affairs of any particular person (including the authority holding that information)

Members received a presentation from Robin Goodchild, International Director and Head of European Strategy, La Salle Investment Management, the purpose of which was to introduce members to global real estate properties.

LaSalle is involved in all global markets in the world and real estate in all forms.  It has its own private funds and is also a major player in real estate securities and Real Estate Investment Trusts (REITs) which more recently has become a global phenomena.  LaSalle is a leading manager around the world.

The Chairman thanked Mr Goodchild for his presentation.

Members discussed the contents of the presentation.

Of the meeting held on 31 May 2007, to be confirmed.

The confidential minutes of the meeting held on 31 May 2007 were confirmed as a true record.

Report by Mercer Investment Consulting.

Members received the report of Mercer Investment Consulting which gave an executive summary of considerations for investment Strategy.  The main report was circulated to members at the meeting.  The report was produced as a result of members wishing to be provided with background information prior to the Strategy Review which will take place in the Autumn.

Members discussed the contents of the main report and agreed that it needed to be looked at in greater detail before coming to any conclusions with regard to the Strategy Review.

Members also discussed options for the investment of the monthly cash flows.