See the report of the Chief Financial Officer – Agenda Item 9.

Mike Rust, Treasury Management Officer, introduced the report. He pointed out that the total value of the Fund as compared at the end of February 2012 was 4% higher than a year earlier.

Lorelei Watson, Chief Technical Officer, drew attention to the responses to the letters sent to the Secretary of State and the Chancellor in respect of the change to the inflation index which were appended to the report. It was further noted that the Court of Appeal ruling in the case taken by six unions agreed with the Government that they could use CPI.

Ms Watson also pointed out to members that six months previously the Panel had agreed to revisit the issue of stocklending in six months time. She also noted that the tendering process for a new provider for Proxy Voting had commenced and a recommendation for approval for the new contract would come to the Panel in June.

Considering the figures for the value of the Fund, Councillor Todd asked about the position with regard to internally managed cash and was informed that money had been drawn down for private equity schemes. Councillor Todd questioned the reconciliation of the figures as private equity had not gone up by £2m. It was explained that the amounts drawn down varied fund by fund. The portfolio required contributions and at certain points a number of contributions came together. Stephen Fitzgerald reminded members part of the Strategic Review was to wind down the private equity portfolio.

The Chair referred to the recommendations of the report and in particular the recommendation to revisit the issue of stocklending. The Chair suggested that the Panel might agree to reconsider stocklending in a year’s time. Councillor Hearn explored what the implications would be during the period of change following the strategic review. Karen Shackleton advised that it would be more sensible to wait until the transition was over. She hoped the changes would be in place by the end of March 2013. So the Panel agreed to reconsider stocklending in a year.

Resolved:

The Panel agreed the recommendations of the report as follows:

1. The Panel noted the report.
2. The Panel considered the Fund’s position with respect to stocklending as set out in section 4 of the report and agreed to reconsider the position in a year’s time.