Agenda item

The Director of Finance, Mr. Travers, presented his report on Fund Performance and Administration to the Panel.

The combined Haringey Fund has increased in absolute terms since inception by

18.72 % in annualised terms. Fund performance was 0.21% below benchmark and 0.62% below target in the quarter to September 2005. Annualised performance since inception was 0.48% below benchmark and 2.13% below target.

Mr. Travers said that Part 1 of the review of strategy had been undertaken at the November meeting of the Panel when the report of Hymans Robertson was presented to it. Parts 2 and 3 would look further at strategy and at what the Panel wanted from its fund managers and would take place at future meetings. He mentioned the scheduled meeting on 2^nd February would be examining issues falling under Part 2.

Mr. Travers assured members that the spend to date was within budget. He commended the approach Hymans Robertson had suggested for trustee training. He mentioned that, after May, he would talk to individual Panel members of the new Pensions Panel about training issues.

The Panel was informed by the Director of Finance that he was awaiting guidance from CIPFA on governance matters. When received, these matters would be referred to members for their attention at the March 2006 meeting. The Chair asked the Director of Finance to circulate the guidance, whenever received, to Panel members with a request to give their suggestions, if any, to him in time before the meeting.

Mr. Travers stated there was uncertainty regarding the 85 year rule. However, it appeared likely that it would cease from 31 October 2006. 

Currently, the earliest age at which an employee can retire is 50. Mr. Travers informed members that it was due to rise to 55 by 2010. Mr. Travers also mentioned to members that there would be rule changes that would allow employees to take a larger lump-sum on retirement.

In reply to the Chair’s concern expressed at past meetings about extra government grant money towards assisting the Haringey LGPS, Mr. Travers informed the Panel that no new government money had been made available by Whitehall to assist local authority pension funds.

A Business Plan will be prepared for the Pensions Fund for 2006/07 as requested by the Chair.

The Chair mentioned that ING have not yet furnished a FRAG-21 certificate. The deadline for this was March 2006. The Chair requested that officers ensure that this date is met.

The Chair concurred with the Director of Finance’s statements on trustee training. The Chair mentioned that he would like training providers to include National Association of Pension Funds (NAPF) and Northern Trust, but personally he did not like to avail himself of any training from the Fund managers, for the interest of better monitoring their performance.

The Panel asked the Director of Finance to ensure that we receive written replies from each Fund Manager regarding our letter on unbundling of commissions and copy these to the Chair.

The Chair mentioned that up to 5% of the fund was in unlisted investments. This was a matter of concern that he had raised with officers previously. He informed the Panel that officers had reassured him that it was prudent for funds to be invested in unlisted companies so long as the percentage was relatively small.

The Chair requested that when guidance is received by officers about governance issues that they forward it to him and other Panel members immediately for their contributions so these can be included in the report to Panel in March 2006.

The Chair requested that in future this report includes the position, regarding compliance of disclosure information, the Data Protection Act and all obligatory information to Fund Members.

RESOLVED:

1. That the Fund Performance position as at the end of September 2005 be noted.

2. That the administration update be noted, with the assurance that a business plan be provided in due course.

3. That the budget monitoring position as at the end of December 2005 be noted.

4. That trustee training requirements be determined after May 2006.