Minutes of a meeting of the Pension Fund Management Board held at County Hall, Glenfield on Friday, 10 November PRESENT

Transcription

1 Minutes of a meeting of the Pension Fund Management Board held at County Hall, Glenfield on Friday, 10 November A PRESENT County Council Members Mr M B Page (Chairman) Mr N J Brown Prof M E Preston Mr G A Boulter Mr D Houseman Leicester City Council Member Cllr A O Brien District Council Representative Cllr F Straw Staff Representatives Mr N Bennett Mr J Kassim Mr. R. Bone Independent Advisors and Managers Mr S Jamieson Mr K Callahan Mr D MacLennan ) Mr E Sterling ) Hymans Robertson Adams Street Partners Standard Life Investments Mr K Baker ) Capital International Mr P Winston ) 112. Minutes of Previous Meeting The minutes of the meeting held on 15 September 2006, having been previously circulated were taken as read, confirmed and signed Question Time The Chief Executive reported that he had not received notice of any questions under Standing Order 8(A) Questions asked under Standing Order 7(3) and 8(5) The Chief Executive reported that he had not received notice of any questions under Standing Order 7(3) and 8(5).

2 Urgent Items There were no items for urgent consideration Declarations of Interest There were no declarations of interest by members in respect of items on the agenda Summary Valuation of Pension Fund Investments The Board considered a report of the Director of Resources concerning a summary valuation of the Fund s investments at 30 September A copy of the report marked B is filed with these minutes. The Director of Resources suggested, and it was accepted, that he would include an additional column in future reports which readily illustrated the effect of hedging Draft Pension Fund Annual Report 2005/06 The Board considered a report of the Director of Resources on the draft Pension Fund Annual Report and Accounts for 2005/06. A copy of the report marked C is filed with these minutes. That the draft Pension Fund Annual Report 2005/06 be approved Proposed Meeting Schedule for Calendar Year 2007 The Board considered a report of the Director of Resources proposing the dates of meetings in A copy of the report marked D is filed with these minutes. The Director of Resources reported that there had been in the region of 60 expressions of interest in the proposed appointment of a Targeted Return Manager, the closing date for which had been the previous day. A rigorous shortlisting would now be undertaken and a number of candidates would be interviewed by the Working Party. The Working Party would then make a recommendation to the Board, hopefully at its 9 March 2007 strategy meeting. The Director of Resources explained that a staff representative would also be a member of the standing Working Party suggested in paragraphs 5 7 of his report, although the actual representative might change from topic to topic.

3 3 (a) (b) That an annual strategy meeting be introduced into the cycle of Board meetings; That a standing Working Party be established for dealing with adhoc issues and projects devolved to it by the Board; and (c) That the Board meet on the following dates in 2007: 9 February review of December 2006 quarter 9 March annual strategy meeting 18 May review of annual/longer term performance and March quarter 7 September review of June quarter 9 November review of September quarter. (With the agreement of the Chairman the 9 March meeting was subsequently postponed until 16 March.) 120. UBS Global Asset Management Use of Pooled Funds for the Implementation of Asset Allocation The Board considered a report of the Director of Resources suggesting that a decision in respect of allowing UBS Global Asset Management to implement asset allocation views within their portfolio via the use of their Market Absolute Return Strategy and Currency Absolute Return Strategy funds be deferred until a decision in respect of other long term strategy issues has been taken. A copy of the report marked E is filed with these minutes. That the report be noted and that the matter be deferred until after the Strategy meeting on 9 March Proposed use of G7 Hedge Fund within Morley Fund Management Investment Portfolio The Board considered a report of the Director of Resources suggesting that Morley Fund Management be allowed to invest in their G7 hedge fund as part of the fixed interest property portfolio that they manage on behalf of the Pension Fund. A copy of the report marked F is filed with these minutes. (a) That Morley Fund Management be allowed to utilise the G7 hedge fund for investing part of their portfolio;

4 4 (b) (c) That a control range of 0% - 6% of the total Morley Fund Management portfolio be allowed as an investment in the G7 fund; That the performance objective for the Morley Fund Management portfolio be amended to benchmark + 1% p.a. (over rolling three year periods), effective from 1 April Navigator The Board considered a report by the Investment Consultant, in his capacity as Actuarial Adviser, illustrating the development of the funding position of the Pension Fund at 30 September A copy of the report marked G is filed with these minutes Exclusion of the Public That under Section 100(A)(4) of the Local Government Act 1972 the public be excluded from the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information as defined in Part 1 of Schedule 12(A) of the Act: Item: Exempt under Paragraph: Report of the Investment Consultant 3 and 10 Adams Street Partners Private Equity Portfolio Review 3 and 10 Standard Life Valuation and Report 3 and 10 Capital International Valuation and Report 3 and 10 UBS Global Asset Management Valuation and Report 3 and 10 Goldman Sachs Asset Management Valuation and Report 3 and 10 Morley Fund Management Valuation and Report 3 and 10 Millennium Global Investments Valuation and Report 3 and 10 Mellon Global Investments Valuation and Report 3 and 10

5 124. Report of the Investment Consultant 5 The Board considered a report of the Investment Consultant concerning a review of the performance of the respective Investment Managers for the second quarter of A copy of the report marked H is filed with these minutes. The report was not for publication by virtue of paragraphs 3 and 10 of Part 1 of Schedule 12(A) of the Local Government Act At this point the representative of Adams Street Partners joined the meeting Adams Street Partners Private Equity Review The Board considered the private equity review of Adams Street Partners. A copy of the report marked I is filed with these minutes. The report was not for publication by virtue of paragraphs 3 and 10 of Part 1 of Schedule 12(A) of the Local Government Act At this point the representative of Adams Street Partners withdrew from the meeting and representatives of Standard Life Investment joined the meeting Standard Life Investments Valuation and Report The Board considered the investment report of Standard Life Investments. A copy of the report marked J is filed with these At this point representatives of Standard Life Investments withdrew from the meeting and representatives of Capital International joined the meeting.

6 127. Capital International Valuation and Report 6 The Board considered the investment report of Capital International. A copy of the report marked K is filed with these minutes. The report was not for publication by virtue of paragraphs 3 and 10 of Part 1 of Schedule 12(A) of the Local Government Act At this point the representatives of Capital International withdrew from the meeting UBS Global Asset Management Valuation and Report The Board considered the investment report of UBS Global Asset Management. A copy of the report marked L is filed with these That the report be noted; 129. Goldman Sachs Asset Management Valuation and Report The Board considered the investment report of Goldman Sachs Asset Management. A copy of the report marked M is filed with these 130. Morley Fund Management Valuation and Report The Board considered the investment report of Capital International. A copy of the report marked N is filed with these minutes. The report was not for publication by virtue of paragraphs 3 and 10 of Part 1 of Schedule 12(A) of the Local Government Act 1972.

7 131. Millennium Global Investments Valuation and Report 7 The Board considered the investment report of Millennium Global Investments. A copy of the report marked O is filed with these 132. Mellon Global Investments Valuation and Report The Board considered the investment report of Mellon Global Investments. A copy of the report marked P is filed with these a.m p.m. CHAIRMAN