Present:-

Devon County Council:-

Councillors Gilbert (Chairman), Brook, Dezart, Edgell, Hannon, Hill, Hosking, and Radford.

Unitary and District Councils:-

Councillors Stark (Plymouth City Council), Parker Delaz Ajete (Plymouth City Council), Hicks (South Hams LGA Devon), Thomas (Torbay Council)

Union and Retired Members: Non-Voting Observers:-

Mr Franceschini and Mr Lomax

(NB: Councillor Hosking present from Minute *69 onwards and Councillor Hannon present from Minute *77 onwards)

Apologies:-

Councillors Greenslade, Squires and Randall Johnson (Devon County Council)

Ms Rimron (Union and Retired Members)

*67 Minutes

RESOLVED that the minutes of the meeting held on 21 November 2014 be signed as a correct record.

*68 Governance and LGPS Update

The Committee considered the report of the County Treasurer (CT/15/18 - text only | pdf | supplementary information CT/15/18) updating members on the current position with respect to governance arrangements and other issues in relation to regulation of the Local Government Pension Scheme.

The County Treasurer drew the Committee s attention to the amendment of the Pension Board s membership agreed by the Council s Procedures Committee as a consequence of the changes to the Local Government Pension Scheme (Amendment) (Governance) Regulations 2015.

The Chairman also gave thanks to long serving member Councillor Stark for his contribution to the Investment Pension Fund Committee, as this would be his last meeting.

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

RESOLVED that the report be noted and that the revised Governance Policy be approved.

*69 Administration Strategy

The Committee considered the Report of the County Treasurer (CT/15/19 - text only | pdf | supplementary information CT/15/19) outlining the Pension Administration Strategy 2014 which had been finalised following a consultation with scheme employers. The strategy covered liaison and communication, performance standards for both Peninsula Pensions and employers and financial information.

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

RESOLVED that the Pension Administration Strategy which would come into effect from 1 April 2015 be approved.

*70 Solar PV Energy Scheme

The Committee considered the Report of the County Treasurer (CT/15/20 - text only | pdf CT/15/20) detailing the recommendations of the Energy Policy Task Group which had been endorsed by Cabinet on 10 December. The Report also outlined the key issues which would need to be taken into account if an investment in renewable energy was to be considered, and the criteria that would need to be applied.

The Committee discussed:

the Pension Fund s duty to provide the best return on investment possible;

the potential for a conflict of interest if the Pension Fund were to make an investment into local infrastructure;

the potential risks involved in this type of investment in the long term.

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

RESOLVED that the report be noted.

*71 Investment Management Report

The Committee received the Report of the County Treasurer (CT/15/21 - text only | pdf CT/15/21) on the fund value and asset allocation against target, the Fund s performance and cashflow and cash management. The Committee heard that the Fund s performance over the quarter to 31 December was disappointing and the return for nine months was 1.3% below the Fund s customised benchmark.

*72 Treasury Management and Investment Strategy 2015/16

The Committee considered the report of the County Treasurer (CT/15/22 - text only | pdf | supplementary information CT/15/22) outlining the current treasury position, cash investments prospects for interest rates and the investment strategy.

It was MOVED by Councillor Parker Delaz Ajete, SECONDED by Councillor Dezart and

RESOLVED that the Treasury Management and Investment Strategy for 2015/16 be adopted.

*73 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) On Course SW Ltd, an Adult Community Learning service;

(b) Plymouth Community Healthcare CIC, delivering Adult Social Care services on behalf

Plymouth City Council.

*74 Dates of Future Meetings

2015

Friday 12 June

Friday 18 September

Friday 20 November

2016

Friday 26 February

*75 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

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.

*76 Appointment of Alternative Indexation Manager

The Committee considered the Report of the County Treasurer (CT/15/23) outlining the

appointment process for a new alternative index funds manager.

It was MOVED by Councillor Thomas, SECONDED by Councillor Brook and

RESOLVED that the decision to invest in the alternative index funds managed by UBS be

endorsed.

*77 Employer Risk Assessment and Review of Indemnity Bonds

The Committee considered the Report of the County Treasurer (CT/15/24) outlining the

results of the employer risk review and the review of indemnity bond levels.

It was MOVED by Councillor Parker Delaz Ajete, SECONDED by Councillor Radford and

RESOLVED

(a) that the results of the employer risk review be noted;

(b) that the action taken to notify letting authorities of the revised recommended bond levels

and the employer risk assessment risk scores be noted;

(c) that the required indemnity bonds for the five housing companies be amended to the

2014 total assessed risk as recommended by the Fund Actuary.

*78 Investment Manager Fees

The Committee considered the Report of the County Treasurer (CT/15/25) summarising

the investment management fees currently paid by the Pension Fund.

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

RESOLVED that the report be noted and investment management fees be kept under

review.

*DENOTES DELEGATED MATTER WITH POWER TO ACT

The meeting started at 10.00am and finished at 11.25am.

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

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