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IN ATTENDANCE: Mr G Ballantine (Government Actuary’s
Department), Mr J Gibson (Head of Procurement), Mr T Evans, Mr E Hobson,
Mrs K McCartney, and Mr N Burns
1. STATEMENT OF INVESTMENT PRINCIPLES
Mr Ballantine presented his paper on Review of Investment Strategy to
the
Trustees.
The Trustees agreed to adopt option one of paragraph nine – a
reduction in the equity content on a phased basis from its current level
of 80% to perhaps 65% (e.g. gradual reduction over a 5-year period)
The main reason for this more cautious strategy being the increase in
the age profile of the members over the period.
On the issue of Socially Responsible Investment the Trustees agreed
that they should state within the criteria for a fund manager that it
would be “desirable” for the new fund manager to conform
to Socially Responsible Investment.
In terms of the development of a Common Investment Fund the Trustees
agreed that no further action should be taken until April 2006 when
the Inland Revenue are due to publish their proposals on a new tax regime
on simplifying the taxation of pensions.
It was also agreed that Mr Ballantine would draft a Statement of Investment
Principles for the new contract.
2. TENDER FOR INVESTMENT MANAGER
Mr Gibson informed the Trustees on the process involved in tendering
for a new fund manager. Mr Gibson also pointed out that despite the
need for precision in selecting the new fund manager, the extension
to the existing contract is currently on a rolling month basis and it
would be preferable to keep this period to a minimum.
In terms of expected service levels in the new contract the Trustees
agreed that there was a need to specify the requirement for the new
fund manager to provide accurate management information on a monthly,
quarterly and annual basis.
The Trustees agreed that the performance of the new fund manager should
be benchmarked against the league table produced by CAPS and consistent
under performance should be addressed by switching to a new fund manager.
Such a situation could be afforded by recruiting the new fund manager
on a rolling one year contract containing a clause, which would enable
the Trustees to give one months notice to a substandard performer.
The Trustees also agreed on the need to encourage applications from
locally based organisations.
Mr Gibson then agreed to prepare a tender paper with a suggested critical
path to be presented to the Trustees at the next meeting.
3. DATE OF NEXT MEETING
It was agreed that the next meeting would be held in early June.
8 April 2004 / Menu / 8 July 2004
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