Agenda and minutes

To note any changes to Membership of the Committee.

There were no changes to Membership of the Committee

None.

To receive any apologies for absence or substitutions.

Apologies were received from Mrs Lynda Croft.

To confirm the minutes of the meeting held on 25 July 2012.

Resolved:

To confirm and sign as a correct record the minutes of the Committee meeting held on 25 July 2012.

To receive any announcements through the Chair.

The Chairman reported that arrangements were being made for a Training Day for Members of this Committee to be held on either 16 or 23 October 2012, the subjects being Investment Management and the Role of the Regulator.  Further details would be sent to all Members of the Committee shortly and he hoped that all Members would be able to attend. 

To receive any declarations of non-pecuniary or pecuniary interests or dispensations granted by the Standards Committee.

There were no declarations of interest.

The Council welcomes contributions from members of the public.

Statements

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.

Questions

To receive any questions from members of the public or members of the Council received in accordance with the constitution. Those wishing to ask questions are required to give notice of any such questions in writing to the officer named above, no later than 5pm on Friday 07 September 2012.Please contact the officer named on the first page of this agenda for further advice. Questions may be asked without notice if the Chairman decides that the matter is urgent.

Details of any questions received will be circulated to Committee members prior to the meeting and made available at the meeting and on the Council’s website.

There were no members of the public present or councillors’ questions.

An update from the Service Director (Finance) on the Wiltshire Pension Fund Risk Register is circulated for the Committee’s consideration.

The Committee received a report by the Service Director, Finance which provided an update in changes to the Fund’s Risk Register.

It was noted that Risk PEN012: Over-reliance on key officers had now reduced from red to green to reflect the implementation of the Pension Team restructure.

Resolved:

To note the update of the Risk Register and measures being taken to mitigate the current high and medium risks.

A report of the current budget monitoring position for the Wiltshire Pension Fund for the year based on the latest position for information.

Consideration was given to a report by the Service Director, Finance about the current budget monitoring position for the Wiltshire Pension Fund for the year based on the latest position.

Resolved:

To note the current position.

A report updating the Committee on the Officers training plans for information.

The Committee received a report by the Service Director, Finance which gave an update on the training plans being implemented for Officers as part of the CIPFA Knowledge & Skills Framework (KSF).

Resolved:

To note the on-going activities in relation to Officers’ training.

A report by KPMG presenting the Final Audit report on the 2011-12 Annual Report for the Wiltshire Pension Fund for information.

The Committee received the draft Final Audit Report for the Wiltshire Pension Fund prepared by KPMG, the Council’s external auditor, which was presented by Ms Gemma Broom assisted by Ms Megan Lumsdaine.   

Ms Broom explained that there were no matters that would cause KPMG to delay issuing their certificate of completion of the audit and it was anticipated that an unqualified audit opinion on the financial statements within the Authority’s report would be issued by 30 September 2012.  KPMG also anticipated that an unqualified opinion on the Annual Report would be issued by 1 December 2012.

Members of the Committee thanked Ms Broom for her report and also the Officers for achieving such a satisfactory external audit.

Resolved:

To note the contents of KPMG’s draft Final Audit on the 2011-12 Annual Report for the Wiltshire Pension Fund.

A report updating the Committee on the actions that have been implemented since the original report was presented on 23 May 2012. 

Consideration was given to a report by the Service Director, Finance which provided an update on actions undertaken since the Internal Auditors’ Report to the Wiltshire Pension Fund from their 2011/12 audit which was presented to this Committee at its meeting on 23 May 2012.

Appended to the report was an Action Plan which highlighted the developments which had taken place since May 2012.   It was noted that although there were no high level risks identified by Internal Audit, three medium level risks had been found.

It was further reported that Officers would continue to work with SWAP to monitor the implementation of all the recommending actions and further updates would be provided at future meetings of this Committee.

Resolved:

To note the Action Plan update to address the issues raised during the 2011/12 Internal Audit of the Wiltshire Pension Fund.

A presentation by the Fund’s actuary of their view on the proposed LGPS changes, the forthcoming triennial valuation and other current issues. 

The Committee received a presentation by Mr Peter Summers of Messrs Hymans Robertson, the Fund’s Actuary, about their view on the proposed Local Government Pension Fund (LGPS) changes, the forthcoming triennial valuation and other current issues. 

To note that the next regular meeting of the Committee will be held on Thursday 06 December 2012.

Resolved:

To note that the next meeting was scheduled to be held on Thursday 6 December 2012, starting at 10.30am.

There were no urgent items.

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 17-20 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:

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 Numbers 110-113 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.

A confidential report is circulated updating the Committee on the implementation of the Dynamic Currency Hedging Programme. 

On considering a confidential report by the Service Director, Finance,

Resolved:

To note the updated position in respect of the implementation of the Dynamic Currency Hedging programme with Berenberg.

A confidential report is circulated updating the Committee on the performance of the Fund’s investments for the quarter.

Consideration was given to a confidential report by the Service Director, Finance on investment activity and performance of the Fund for the quarter to 30 June 2012, together with a review of investment managers’ performance for the same period prepared by Messrs Mercer.

Resolved: To note the Fund’s investment activity and performance.

A report by Mercers that reviews and proposes potential amendments to the Fund’s fixed income allocations will be circulated as a late supplement.

Consideration was given to a confidential report by Messrs Mercer that reviewed and proposed potential amendments to the Fund’s fixed income allocations.

After some discussion,

Resolved:

To continue to monitor the situation and to report further to the next meeting on 6 December 2012.

A confidential Annual Report from M&G is attached and Members are asked to consider this along with the verbal report at the meeting.

The Committee considered the Annual Report by M & G Investments which outlined action taken during the past year and policy for the next period.

Mr J Atkin and Mr G Parker answered questions concerning the report.

Resolved:  To note the information contained in the report and the investment policy proposals as detailed by M & G Investments.