Agenda and minutes

To note the attendance at this meeting of any duly appointed Reserve Members.

Reserve Members may attend meetings:-

(i)                 to take the place of an ordinary Member for whom they are a reserve;

(ii)               where the ordinary Member will be absent for the whole of the meeting; and

(iii)             the meeting notes at the start of the meeting at the item ‘Reserves’ that the Reserve Member is or will be attending as a reserve;

(iv)              if a Reserve Member whose intention to attend has been noted arrives after the commencement of the meeting, then that Reserve Member can only act as a Member from the start of the next item of business on the agenda after his/her arrival.

RESOLVED:  To note that there were no Reserve Members in attendance at this meeting.

To appoint a Vice-chairman of the Pension Fund Investment Panel for the Municipal Year 2011/12.

RESOLVED:  To appoint Councillor Thaya Idaikkadar as Vice-Chairman of the Pension Fund Investment Panel for the 2011/2012 Municipal Year.

To note the appointment of a non voting co-optee to the Pension Fund Investments Panel for the Municipal Year 2011/12 at the Licensing and General Purposes Committee on 12 May 2011.

RESOLVED:  To note the appointment of Howard Bluston as a non-voting co?optee to the Pension Fund Investment Panel for the Municipal Year 2011/12 at the Licensing and General Purposes Committee on 12 May 2011.

To receive declarations of personal or prejudicial interests, arising from business to be transacted at this meeting, from:

(a)               all Members of the Committee, Sub Committee, Panel or Forum;

(b)               all other Members present in any part of the room or chamber.

RESOLVED:  To note that the following interests were declared:

Agenda Item 11 – Tender for Invesment Consulting Services

Mr Howard Bluston declared a personal interest in that he had worked closely with the Aon Hewitt team based in St. Albans and as a Member of the North London Local Authority Pension Fund Committee.

That the minutes of the following meetings be taken as read and signed as a correct record:

RESOLVED:  That the minutes of the meeting held on 5 April 2011 and the special meeting on 3 May 2011, be taken as read and signed as correct records.

To receive questions (if any) from local residents/organisations under the provisions of Committee Procedure Rule 17 (Part 4B of the Constitution).

RESOLVED:  To note that no public questions were put, or petitions or deputations received at this meeting.

To resolve that the press and public be excluded from the meeting for the following item of business, on the grounds that it involves the likely disclosure of confidential information in breach of an obligation of confidence, or of exempt information as defined in Part I of Schedule 12A to the Local Government Act 1972:

RESOLVED:  That the press and public be excluded from the meeting for the following item for the reasons set out below:

Report of the Interim Director, Finance.

The Panel received a report of the Interim Director Finance that set out the process the appointment of an investment adviser that had taken place.

The Panel had discussed the suitability of appointing Aon Hewitt as an Investment Advisor at the PFIP meetings on 5 April and 3 May.  At the 3 May 2011 meeting, the Panel agreed to submit questions for the proposed lead consultant in advance of the meeting and meet with representatives of Aon Hewitt to have an informal discussion.

An officer advised that the Panel had the option to appoint one of the two consultants from Aon Hewitt who were in attendance at the meeting.  It was agreed that Aon Hewitt would be advised of the consultant chosen subsequent to the meeting.

The representatives from Aon Hewitt answered questions raised by the Panel to which they responded to as follows:

·                    Aon Hewitt appointed experienced staff from a broad range of consulting and investing backgrounds.  This provided the opportunity for clients to receive robust investment advice;

·                    the number of clients managed by investment consultants at Aon Hewitt varied according to the complexity of the client investment portfolio.  Lead consultants had an average total of ten to twelve clients;

·                    officers were the main point of contact for investment consultants. Key issues relating to investment decisions would be presented and discussed with the Panel;

·                    a good client/consultant relationship existed where both parties had agreed a defined set of objectives and the client considered the advice provided by the investment consultant that would maximise the performance potential of individual pension fund portfolios.

RESOLVED:  That

(1)               Aon Hewitt be appointed as Investment Adviser to the Panel;

(2)               the Panel’s preferred lead consultant was John Harrison;

(3)               the s151 or deputy s151 officer be authorised to sign any documentation necessary or desirable to formalise the appointment.