Meeting documents

Apologies were received from Phil Gerrella.

Members were informed that Mr Don Phillips was retiring from the Pension Fund Committee and this would be his last meeting.  The Chairman, on behalf of the Committee, thanked Mr Phillips for his work on the committee and the help and support he has provided over the years.  He would be missed.

To declare any personal and prejudicial interests

There were none.

of the meeting held on 16 December 2008, to be agreed.

The minutes of the meeting held on 16 December 2008 were confirmed.

Report from Julie Edwards, Treasury Manager

Members received the report of the Treasury Manager which presented the performance of the Pension Fund’s fund managers for the fourth quarter of 2008.

During the three months ending 31 December 2008 the market value of the Fund decreased by 3.9% from £1,107m to £1,074m.

Alliance Bernstein and Blackstone underperformed for the quarter, whereas Pantheon and L&G generated positive returns.  The majority of the Pantheon return is due to fluctuations in currency. For the three months to 31 December 2008 Aviva Investors, Capital International, Legal and General, Mirabaud and Pantheon Private Equity fund of funds mandates outperformed their benchmarks.

For the three years to December 2008, the fund achieved a return gross of fees of -1.3% per annum, underperforming its benchmark by 0.2%.  L&G Bonds, BlackRock and Blackstone generated positive returns, but property and equity investments achieved a negative return.  Mirabaud and Aviva also outperformed their benchmarks over that period.

It was estimated that the percentage to which Fund liabilities are funded may have dropped by 10% as a result of the market downturn. Members noted that the interim valuation from Barnett Waddingham (Actuary) will be available after 31 March 2009 and those figures will be presented at the June meeting of the Committee.  Discussion took place regarding the funding level to which a Pension Fund may reduce and become a cause for concern.  However, any drop would only have a real impact if the Scheme ceased and all the money needed to be paid out.

Members also discussed whether the element of risk had increased in investments.  It was noted that there is more short term risk at present because of the volatility of the market.  However, the Pension Fund Strategy will have taken account of this and measures have been taken to reduce volatility through diversification, whilst trying to maintain a steady return.  2009 will continue to be a difficult period.

The next meeting of the Committee will be held on Thursday 2 April 2009 at 10.00am in Mezzanine Room 3.

Dates of future meetings:

19 June

17 September

22 October

17 December

The next meeting of the Committee will be held on Thursday 2 April 2009 at 10.00am in Mezzanine Room 3.

Dates of future meetings

19 June

17 September

22 October

17 December

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

It was AGREED 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)

Of the meeting held on 16 December 2008, to be agreed

The confidential minutes of the meeting held on 16 December 2008 were confirmed.

The Chairman welcomed to the meeting Laurence Jonkler, Principal and Alex Scott, Principal, from Pantheon, who gave a presentation on private equity.

The Chairman thanked the officers for their presentation and members discussed the opportunities which may be available in the private equity sector.

Anwen Owens from Mercers Investment Consulting gave a presentation on transition management should there be a need for this work in the future.