Attendance by Fund Managers
Attendance and presentations by Fund Managers for a 10 minute presentation and 15 minutes of questions from Trustees, the Advisor to Trustees and the Chief Financial Officer.
7:20pm – Capital;
7:45pm – ING;
8:10pm – Fidelity;
8:35pm – Bernstein.
Minutes:
The Committee received presentations from four Fund Managers as follows:
CAPITAL
Fund performance for the equities mandate was 4.16% below the target in annualised terms in the 21-month period to the end of December 2008.
Fund performance for the bonds mandate was 3.93% below the target in annualised terms for the 21-month period to the end of December 2008.
Capital explained the reasons for current performance, answered questions from Trustees and explained their position in respect of the RBS share issue in June 2008.
The Committee asked for Capital’s opinion on bonuses. Capital responded that the previous bonus system in the financial sector had encouraged risk-taking, and that they would support a more sensible, longer-term bonus structure.
The Committee asked about Capital’s arrangements for looking at corporate governance arrangements. Capital reported that this formed an integral part of their research into companies, and that it was their duty as long term shareholders to challenge any areas of concern.
The Committee urged Capital to take further action to improve their performance for the next time they attended the Committee.
ING
Fund performance was 0.5% above the target in annualised terms in the 21-month period to the end of December 2008.
ING explained the reasons for current performance and answered questions from Trustees.
Cllr Basu arrived at 19:45hrs.
The Committee noted the presentation and replies to questions thereto.
FIDELITY
Fund performance for the equities mandate was 0.9% below the target in annualised terms in the 21-month period to the end of December 2008.
Fund performance for the bond mandate was 1.6% below the target in annualised terms in the 21-month period to the end of December 2008.
Fidelity explained the reasons for current performance, answered questions from Trustees and explained their position in respect of the RBS share issue in June 2008.
The Committee noted the presentation and replies to questions, and expressed the hope that performance would improve in the next quarter.
BERNSTEIN
Fund performance for the global equities mandate was 14.51% below the target in annualised terms for the 21-month period to the end of December 2008.
Fund performance for the UK equities mandate was 8.86% below the target in annualised terms for the 21-month period to the end of December 2008.
Bernstein explained the reasons for current performance, answered questions from Trustees and explained their position in respect of the RBS share issue in June 2008.
In response to questions from the Committee, Bernstein confirmed that they took corporate governance issues very seriously in their research, and would challenge and raise concerns where this was necessary.
The Committee hoped that Bernstein would take all possible actions to improve their performance for the next time they attended the Committee.