Present:-

Devon County Council:-

Councillors Boyd (Chairman) Edgell, Gilbert, Greenslade, Radford, Randall Johnson, Squires.

Unitary and District Councils:-

Councillors Dr Mahony and Fox (Plymouth City Council) and Edwards (Exeter LDA-Devon).

Union and Retired Members: Non-Voting Observers:-

Mr Lomax and Mrs Parker

Apologies:-

Devon County Council: Councillors Hannon and Wright.

Plymouth City Council: Councillors Stark and Smith.

Union Observer Mr Franceschini.

*7 Minutes

RESOLVED that the minutes of the meeting held on 7 June 2013 be signed as a correct record.

*8 Pension Fund Annual Report and Accounts

The Committee considered the report of the County Treasurer (CT/13/41 - text only | pdf CT/13/41) together with the Annual Report document. The Annual Report included a summary of the performance of the Fund s external managers, including stewardship activity and the market outlook going forward, followed by the Statement of Accounts.

Nigel Timmons from Grant Thornton was present for this item and advised that the audit opinion would be presented to the Audit Committee for approval. He further reported that there are no issues with the Pension Fund.

It was MOVED by Councillor Boyd, SECONDED by Councillor Radford and

RESOLVED that the Pension Fund Annual Report and Accounts for 2012/13 be adopted, subject to approval of the Statement of Accounts by the Devon County Council Audit Committee.

(NB: In accordance with Standing Order Councillor Edgell requested that his abstention from voting on this decision be recorded.)

*9 Infrastructure Strategy

The Committee considered the report of the County Treasurer (CT/13/42 - text only | pdf CT/13/42) on potential investment options with two infrastructure funds and outlined the benefits of investing with both First State European Diversified Infrastructure Fund and Aviva REaLM Funds.

It was MOVED by Councillor Greenslade, SECONED by Councillor Randall Johnson and

RESOLVED that an investment be made of 50million (c. 45million) into the First State European Diversified Infrastructure Fund, 20million into the Aviva REaLM Infrastructure Fund and 20million into the Aviva REaLM Ground Rents Fund.

*10 Investment Management Report

The Committee considered the report of the County Treasurer (CT/13/43 - text only | pdf CT/13/43) on the current Fund Value and Asset Allocation against target. The County Treasurer reported a disappointing quarter with Fund return of 1.3% below the Fund s customised benchmark.

Members questioned whether this low return was of a temporary nature or if this was likely to be a continuing trend. The County Treasurer responded that the low return might not be a temporary position and that the situation should continue to be monitored by both the Investments Team and by the Committee. However, it was considered that the Fund s further investment in infrastructure should help contend the dip, providing an improved level of return.

It was MOVED by Councillor Greenslade, SECONDED by Councillor Edgell and

RESOLVED

(a) that the Investment Management Report be noted;

(b) that the Statement of Investment Principles be amended to reflect the revised asset allocation, as agreed at the last meeting of the committee;

(c) that the County Treasurer, in consultation with the Chairman, take appropriate action in accordance with the Fund s rebalancing policy to fund the agreed allocation to infrastructure;

(d) that a full schedule of the Fund s investments be distributed to Members of the Committee.

*11 Governance Issues

The Committee considered the report of the County Treasurer (CT/13/44 - text only | pdf | supplementary information CT/13/44) on the latest consultation on governance arrangements for the Local Government Pension Scheme (LGPS). The report also set out a revised Governance Policy and Compliance Statement for the Devon Fund.

It was MOVED by Councillor Randall Johnson, SECONDED by Councillor Greenslade and

RESOLVED

(a) that the Committee notes the action of the Chairman in approving the response to the consultation document The Local Government Pension Scheme (England and Wales) new governance arrangements ;

(b) that the revised Governance Policy and Compliance Statement be approved;

(c) that the Committee receives regular updates on new bodies admitted to the pension scheme.

*12 Call for Evidence on the Future Structure of the Local Government Pension Scheme

The Committee considered the report of the County Treasurer (CT/13/45 - text only | pdf | supplementary information CT/13/45) on the Government s Call for Evidence on the question of LGPS Fund sizes, potential mergers and cost management.

It was MOVED by Councillor Edgell, SECONDED by Councillor Gilbert and

RESOLVED that the proposed response to the Government s Call for Evidence be endorsed and that Devon MPs be copied into the response.

*13 Proposed Shared Services Arrangements for Pension Administration

The Committee considered the report of the County Treasurer (CT/13/29 - text only | pdf CT/13/29) providing an update on the shared service arrangement with Somerset County Council for Pension Administration.

It was MOVED by Councillor Randall Johnson, SECONDED by Councillor Greenslade and

RESOLVED that the successful implementation of the shared service arrangement for Pension Administration Services with Somerset County Council be noted.

*14 Member Training

The County Treasurer reported that a joint training day with Cornwall Investment Committee had been arranged for Friday 25 October 2013. Members were asked to hold the date in their diaries.

*15 Dates of Future Meetings

22 November 2013

28 February 2014

*16 Exclusion of Press and Public

RESOLVED that the press and public be excluded from the meeting for the following item of business under Section 100(A)(4) of the Local Government Act, 1972 on the grounds that it involves the likely disclosure of exempt information as defined in Paragraph 3 of Schedule 12A of the Act, namely information relating to financial or business affairs of a person other than the County Council and disclosure of which would be likely to inhibit the free and frank provision of advice and exchange of views for the purposes of deliberation, in accordance with Section 36 of the Freedom of Information Act 2000, by virtue of the fact that the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

*17 Independent Advisor Arrangements

Mr Harrison, the Fund s Independent Advisor left the room for this item.

The Committee considered the report of the County Treasurer (CT/13/47) on the proposed revised arrangements with regard to the Fund s Independent Advisor.

It was MOVED by Councillor Randall Johnson, SECONDED by Councillor Edgell, and

RESOLVED that the revised arrangements with regard to the Fund s Independent Advisor are agreed.

*DENOTES DELEGATED MATTER WITH POWER TO ACT

The meeting started at 10.00am and finished at 11.20am.

The Minutes of the Committee are published on the County Council s Website at: