Agenda and minutes

There were no membership changes.

Cllr Bill Moss attended the meeting.

Apologies for absence were received from Cllr Moffatt.

To confirm the minutes of the meeting held on 25 February 2010 (copy attached)

Resolved:

To confirm and sign the minutes of the meeting held on 25^th February 2010.

The Chairman welcomed Bob Summers and Catherine Dix to their first meeting. 

Bob Summers is one of the two appointed Independent Pension Fund Advisors to the Committee.  He is highly respected figure in the local government pensions arena, his achievements include Chairman of the CIPFAs Pensions Panel, establishing the Pensions Network, being a lead financial advisor to the Local Government Association and leading the Norfolk Pension Fund to achieve nation awards for governance and performance.

Catherine Dix is the new Fund Investment and Accounting Manager. She has previously worked in the Treasury team in Corporate Finance and was involved with the Pension Fund investments four years ago when she first joined Wiltshire Council.

The Chairman reminded the Committee that the next training session has been arranged for Thursday 17^th June 1000hrs.  The training session will be on Corporate Governance and Social Responsible Investment issues.  

With the introduction of the CIPF Knowledge and Skills Framework, the current Members training plan will be reviewed and a more formal approach will be required to ensure skills gaps can be identified and training arranged to meet these priorities.  Failure to comply with the Framework will require disclosure in the future Annual Reports.  A detailed report will be on the July Committee agenda to look at way to ensure compliance.

Councillors are requested to declare any personal or prejudicial interests or dispensations granted by the Standards Committee.

There were none.

The Council welcomes contributions from members of the public.

If you would like to make a statement at this meeting on any item on this agenda, please register to do so at least 10 minutes prior to the meeting.  Up to 3 speakers are permitted to speak for up to 3 minutes each on any agenda item. Please contact the officer named above for any further clarification.

Members of the public wishing to ask a question should give written notice (including details of any question) to the officer named above by  12.00noon on Tuesday 11 May 2010.

There were no members of the public present.

A report prepared by the Fund’s Auditors KPMG is circulated and Gemma Broom (KPMG) will be at the meeting to present and answer questions. (10.35)

David Anthony, Head of Pensions delivered a high level overview of the 2^nd Annual Report from KPMG on the Interim Audit Report for the Wiltshire Pension Fund.  He drew the Committees attention to the following points,

• The interim report does not raise any areas of concern to KPMG.

• The Wiltshire Pension Full Annual Report for 2009-10 would be presented to the Committee at the September Meeting.

Resolved

That the Committee note the Interim Audit Report.

An update from the Chief Finance Officer on the Wiltshire Pension Fund Risk Register is circulated for Members’ consideration. (10.45)

David Anthony, Head of Pensions delivered an update on the Risk Register for the Wiltshire Pension Fund, and detailed the significant changes in the Risk Register.

• RISK PEN002 Failure to collect and account for contributions from employers and employees on time – has improved from red to green.

• RISK PEN011 Lack of expertise of Pension Fund Officers and Chief Finance Officer – has been amended in line with CIPFA Skills Framework.

• RISK PEN 12 Over reliance on key officers – has improved from Amber to Green after successful recruitment of staff and handovers.

• RISK PEN 15 Failure to collect payments form ceasing employers – and Risk Pen 16 Treasury Management - were new additions to the register.

Resolved

That the Committee note the Wiltshire Pension Fund Risk Register Report.

To consider and approve the updated Statement of Investment Principles which is circulated. (10.55)

Martin Donovan, Chief Finance Officer, updated the Committee on the recent changes to the Fund’s investment strategy, addressing in particular,

• The implementation of the Committees decision to terminate the Baillie Gifford UK mandate.  The decision was made in line with the Fund’s long term Investment Strategy.

• The requirement to report the Funds compliance in line with the 6 revised Myners principles.  The team will particularly concentrate upon,
  • Effective Decision making
  • Performance Assessment
  • Responsible Ownership

Resolved

That the Committee approve the report on the 2010 Statement of Investment Principles.

An interim update for Members regarding the implementation of the Wiltshire Pension Fund’s Administration Strategy is circulated. (11.05) 

David Anthony, Head of Pensions, advised the Committee, with an interim update on the implementation of the Wiltshire Pension Fund’s Administration Strategy.  He drew members’ attention to the fact that a more detailed report would be delivered to the Committee in September when the strategy would have been in operation for 9 months.

Resolved

That the Committee note the report.

To note that the next regular meeting of the Committee will be held on Wednesday 14 July 2010.  (11.15)

Resolved

To note that the next regular meeting of the Committee would be held on Thursday 14 July  2010.

Any other items of business which, in the opinion of the Chairman, should be considered as a matter of urgency. Urgent items of a confidential nature may be considered under Part II of this agenda.

There were no items of urgent business.

To consider passing the following resolution:

To agree that in accordance with Section 100A(4) of the Local Government Act 1972 to exclude the public from the meeting for the business specified in Item Numbers 15 – 18  because it is likely that if members of the public were present there would be disclosure to them of exempt information as defined in paragraph  3 of Part I of Schedule 12A to the Act and the public interest in withholding the information outweighs the public interest in disclosing the information to the public.

Resolved: 

To agree that in accordance with Section 100A(4) of the Local Government Act 1972 to exclude the public from the meeting for the business specified in Minute Nos. 15 - 21 because it is likely that if members of the public were present there would be disclosure to them of exempt information as defined in paragraphs 1 & 3 of Part I of Schedule 12A to the Act and the public interest in withholding the information outweighs the public interest in disclosing the information to the public.

To consider and approve a report from officers and a presentation from the Actuary recommending the Wiltshire Pension Fund adopts a Stabilisation Policy for secure long term employers ahead of the 2010 Valuation. (11.20)

The Committee considered a confidential report on the implementation of a Stabilisation Policy   Peter Summers from Hymans Robertson answered questions fielded by the Committee.

Resolved

a)     to agree the principle of a Stabilisation policy.

b)     to adopt a mechanism that limits increase/decrease in employer contributions.

c)     to write to Secure employers within the fund explaining the policy.

d)     request officers commence dialogue with the non Secure

employers within the Fund, outlining the likely impact of 2010 Valuation and exploring the options available for them that may be applicable to mitigate the impact of large increases in employers contributions from April 2011.

A confidential report on the investment activity and performance of the Fund for the year to 31 March 2010 is attached for Members’ consideration. (12.05)

The Committee considered the confidential Quarterly Progress Report which addressed the investment activity and performance of the Fund for the year to 31 March 2010.

David Anthony, Head of Pensions, answered various questions surrounding the report.

Resolved

That the Committee note the contents of the report.

A confidential report by the Chief Finance Officer is circulated updating Members in relation to the position of an individual investment manager. (12.30)

BUFFET LUNCH

13.00 – 13.30)

Consideration was given to a report by the Chief Finance Officer which reviewed the Record active currency mandate.

Questions from members were answered by David Anthony, Head of Pensions, and an independent view was given by Bob Summers.

Resolved

a)     to remove assets from the Record active currency fund with intention to reinvest when more ‘normal’ interest rate conditions return.

b)      to agree that the decision to reinvest back in to the Record active currency fund is delegated to the Chief Finance Officer in consultation with Chairman and Vice Chairman and Fund’s advisors.

c)     to use assets removed from the Record active currency fund to rebalance underweight managers in the Pension Fund.

A confidential annual report from Capital International is attached and Members are asked to consider this along with the verbal report at the meeting. (13.30)

Claire Swinton and Martyn Hole from Capital International delivered a review of the Investment Report 2009/10.

The Chairman thanked them for their report.

The Committee, after lengthy debate and discussion,

Resolved

That the Committee note the content of the report.