Present:-

Devon County Council:-

Councillors Gilbert (Chairman), Brook, Dezart, Greenslade, Hill, Hosking, Radford, Randall Johnson and Squires

Unitary and District Councils:-

Councillors Edwards (Exeter LGA), Dr Mahony (Plymouth City Council) and Parker Delaz Ajete (Plymouth City Council)

Union and Retired Members: Non-Voting Observers:-

Mr Franceschini, Mr Lomax and Ms Rimron

Also in Attendance

Councillors Hicks and Smith

(NB: Councillor Hosking present from Minute 61 onwards and Councillors Brook and Dr Mahony present from Minute 66 onwards)

Apologies:-

Councillors Edgell (Devon County Council), Hannon (Devon County Council) and Wright (Devon County Council)

*59 Minutes

RESOLVED that the minutes of the meeting held on 12 September 2014 be signed as a correct record.

*60 Pension Fund Governance Arrangements

The Committee considered the Report of the County Treasurer (CT/14/67 - text only | pdf | supplementary information CT/14/67) outlining proposals for a new Pension Board, as required as part of revised governance arrangements introduced by the Public Sector Pensions Act 2013 and the possible consequential impact on the membership of the Investment and Pension Fund Committee.

It was MOVED by Councillor Randall Johnson SECONDED by Councillor Squires and

RESOLVED

(a) that the requirement for the Council to establish a Pension Board by 1 April 2015 be noted;

(b) that the terms of reference for the Pension Board, as set out at Appendix 1, be commended to the Procedures Committee, and for subsequent approval by County Council;

(c) that the Procedures Committee be also recommended to revise the membership of the Investment and Pension Fund Committee as set out in the Report, for implementation from 14 May 2015;

(d) that following consultation with the Pension Scheme employers, a revised Governance Policy and Compliance Statement incorporating the revised governance arrangements be brought to the next meeting of the Committee.

*61 Investment Management Report

The Committee considered the Report of the County Treasurer (CT/14/68 - text only | pdf CT/14/68) outlining the fund value and asset allocation against target, the performance of the Pension Fund and cashflow and cash management, acknowledging a disappointing latest quarter with a Fund return of 0.5% below the Fund s customised benchmark.

The County Treasurer advised that some funds had not performed as well as expected over the last quarter but that this was in part due to cyclical issues. The Committee discussed the benefits of investing in actively managed funds which had higher management costs, versus passive funds.

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

RESOLVED that the Report and compliance with 2014/15 Treasury Management Strategy be noted.

*62 Applications for Admitted Body Status

The Committee noted that the following applications for admitted body status had been approved by the County Treasurer under delegated powers:

(a) PAPH, who have entered a contract with Plymouth City Council for the provision of

services under the Plymouth Excellence Cluster helping children with mental health and

behavioural problems;

(b) Innovate, who have entered into a contract with Torquay Girls Academy to run catering

services.

*63 Dates of Future Meetings

2015

Friday 27 February

Friday 12 June

Friday 18 September

Friday 20 November

2016

Friday 26 February

*64 Exclusion of Press and Public

RESOLVED that the press and public be excluded from the meeting for the following items

of business under Section 100(A)(4) of the Local Government Act, 1972 on the grounds

that they involve 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 the

County Council and of another person 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.

*65 Review of Activism Funds

The Committee considered the Report of the County Treasurer (CT/14/69) reviewing the

Pension Fund s current investment in activism funds. The managers of the funds

concerned sought to actively involve themselves in making improvements in the

management of the companies in which they were invested in order to add value to their

investments.

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

RESOLVED

(a) that the Report be endorsed;

(b) that Officers continue discussions on future investment plans as set out in the report;

(c) that the County Treasurer be authorised to approve any changes, in consultation with

the Chairman.

*66 Future Cashflow

The Committee received the Report of the County Treasurer (CT/14/70) outlining future

cashflow projections for the Pension Fund, following the 2013 Actuarial Review.

*DENOTES DELEGATED MATTER WITH POWER TO ACT

The meeting started at 10.00am and finished at 11.05am.

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

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