Agenda and minutes

RESOLVED that the minutes of the meetings held on 22 March and 23 May 2013 relating to the unrestricted items on the agenda are correctly recorded and that they be signed as a correct record by the Chairman.

RESOLVED that under Section 100A of the Local Government Act 1972 the press and public be excluded from the meeting for the following business on the grounds that it involves the likely disclosure of exempt information as defined in paragraph 3 of part 1 of Schedule 12A of the Act.

RESOLVED that the minute relating to the restricted item - Fund Structure- from the meeting held on 22 March 2013 is correctly recorded and that it be signed as a correct record by the Chairman.

(GMO – Management Investment Review – Quarter Ending 31 March 2013 – attached separately for Members of the Committee)

(1)       The Chairman welcomed Mr Hene and Mr Garvey from GMO to the meeting and invited them to give a presentation to the Committee on the value-oriented global equity portfolio which they have managed on behalf of the Kent County Council Superannuation Fund since 2006.

(2)       Mr Hene and Mr Garvey answered questions from Members of the Committee.

(3)       RESOLVED that the presentation, papers circulated and the response to questions asked by the Committee be noted.

(KCC Superannuation Fund – Quarterly Portfolio Report Q1 2013 - separate document attached for Members of the Committee)

(1)       The Chairman welcomed Mr O’Gorman and Ms Linacre from DTZ to the meeting and invited them to present their quarterly portfolio report for quarter 1 2013.  Mr O’Gorman and Ms Linacre answered questions from Committee members.

(2)       Mr Vickers undertook to email to the members of the Committee the original book value of the assets that DTZ managed on behalf of the Kent County Council Superannuation Fund. 

(3)       RESOLVED that the presentation and the response to the questions from the Committee be noted.

(1)       Mr Vickers introduced a report which set out options for managing Cash if the funds held in equities were reduced.

(2)       The Committee discussed the overweight position in equities as at 31 March 2013 which had arisen as the result of the strong returns from equity markets.

(3)       RESOLVED that:

   (a)       a £50m deposit limit with HSBC be agreed

            (b)       the use of Treasury Bills be agreed

            (c)        the Head of Financial Services arrange for the Absolute Return                        Manager referred to in the report to meet with as many                                  Members of the Committee as possible and;

            (d)       authority be delegated  to the Corporate Director of Finance &                         Procurement in consultation with Members of the Committee to               implement changes

(1)       Mr Vickers introduced a report which followed on from DTZ’s investment strategy report to the Committee earlier in the meeting and set out a range of options for the Committee’s consideration.  Advice was given to the Committee by Mr Elliott from Hymans Robertson. 

(2)       RESOLVED that the position on DTZ be noted and arrangements be made for the Committee to meet with two property managers recommended by Hymans Robertson. 

(1)       Mr Vickers presented a report which updated the Committee on the tender process being managed by Hymans Robertson for a Global Equality Manager as  agreed at 16 November 2012 meeting of the Committee.

(2)       RESOLVED that the tender process be noted and responsibility be delegated to the Corporate Director of Finance & Procurement to appoint the Global Equity Manager following interviews by Members.

The Committee considered the following items in open session.

(1)       Mr Vickers introduced a report which provided a summary of the Fund’s asset allocation and investment performance to 31 March 2013 and answered questions from Members of the Committee.

(2)       RESOLVED that the Fund Position Statement be noted.

 (1)      Mr Vickers introduced a report which set out information on a number of admission matters and the recovery of actuary fees from academies.

(2)       A Member suggested that consideration should be given as to whether it was possible to charge a fee for the administrative costs to process admissions to the Fund.

RESOLVED that the Committee:

(1)     Agree to the admission to the Kent County Council Pension Fund of Tonbridge and Malling Leisure Trust, and

(2)     Agree that the admission agreements made by Agincare relating to Robert Bean Lodge and Nelson Court, provide for guarantees from Medway Council, and

(3)     Agree to the admission to the Kent County Council Pension Fund of Pie Factory Music Group, and

(4)     Agree to the admission to the Kent County Council Pension Fund of the successful bidder for the Shepway District Council grounds maintenance contract, and

(5)     Agree to the admission to the Kent County Council Pension Fund of Amey OW Ltd, and

(6)     Agree that pending receipt of the actuary’s confirmation of the level of the bond and employer’s contribution rate, agreement to the admission to the Kent County Council Pension Fund of Westgate Community Trust (Canterbury) Limited is delegated Director of Finance and Procurement in consultation with the Chairman of the Committee, and

(7)     Note the withdrawal of MCCH Ltd as a participating employer in the Pension Fund, and

(8)     Note the withdrawal of Roffa Limited as a participating employer in the Pension Fund, and

(9)    Agree that an admission agreement can be entered into with Capita Managed IT Solutions Ltd Limited, and

.

(10)  Agree to recover the August 2013 FRS17 charges from academies, and

(11)   Agree that once legal agreements have been prepared for the matters (1) to (5) and (7) to (9) above, the Kent County Council seal can be affixed to the legal documents.

(12)   Agree that a report be submitted to a future meeting of the Committee on arrangements for charging for the administration of admissions to the Fund.

(Councillor Eden-Green declared an interest as a member of the Westgate Community Trust and took no part in the discussion or voting on this decision)