Meeting documents

Agenda Item No. 4

Purpose of the Report

1 To provide the Committee with an overview of the transactions undertaken during the period 1st October 2006 to 31st December 2006, to show how the value of the portfolio has changed during the period, the overall performance of the Managers and to consider the allocation of additional sums to the Managers for further investment.

Transactions

2 Reports from the three appointed managers - Baring Asset Management Limited, Morley Fund Management Limited and Legal and General Investments Limited are included on the agenda and a summary is attached in the Appendix, Table 2.

3 As at 1st October 2006 Barings had £28,222,513, Morley had £27,220,860 and Legal and General had £10,029,379 available for investment. During the quarter, Barings has invested a net amount of £13,094,057, Morley has disinvested a net amount of £8,298,318 and Legal and General has invested a net amount of £1,600,000.

Managers’ Performance

4 The table below shows how the Managers of the three parts of the Fund have performed over the last quarter, year and three years against agreed benchmarks:

Manager	Quarter	Last 12 months	3 years
BAM	6.3	14.8	16.3
Morley	4.7	10.6	13.6
Legal & General	5.6	13.3	15.3
Median	5.1	12.6	15.3

Allocation of “New Money”

5 A summary of the cash position of the Fund and estimates/actuals of cashflow over the last four quarters is contained in Table 1 on the Appendix.

6 The uninvested cash balance at the end of the previous quarter, together with interest and dividend received during the quarter, is available for investment during the quarter ending 31st March 2007 subject to the need to retain money to meet the Fund’s net cash outflow. Having regard to the cash balance of the Fund at 31st December 2006, it is recommended that £8,000,000 be added to the money available to the managers for investment.

The Value of the Fund

7 The changes in the value of the Fund during the period 30th September 2006 to 31st December 2006 are shown in Table 2 in the Appendix.

Recommendation

8 Having regard to the cash balance of the Fund at 31st December 2006, it is recommended that £8,000,000 be added to the money available to the managers for investment.

Contact: Paul Turner Ext: 3571

25 January 2007Superan/Sup2nf
TABLE 1

	31.03.06	30.06.06	30.09.06	31.12.06	31.03.07
Quarter Ended	Estimate	Actual	Estimate	Actual	EstimateActualEstimateActualEstimate
(1)	(2)	(3)	(4)	(5)	(6)(7)(8)(9)(10)
			£	£	£££££
Contributions - DCC	9,200,000	9,182,707	9,200,000	9,682,792	9,700,00010,001,47710,000,00010,027,69010,000,000
- Other	9,500,000	9,625,561	9,600,000	10,999,583	11,000,0009,348,9749,700,00010,208,16710,000,000
Pensions Increase	1,100,000	1,260,648	1,200,000	1,178,452	1,200,0001,094,1131,000,0001,051,7161,000,000
Transfer Values	2,500,000	2,634,996	2,500,000	1,681,915	1,500,0001,625,9571,500,0002,065,5651,500,000
Loans Repaid	8,000	0	0	0	90900
Gross Dividend & Interest	6,500,000	7,305,726	5,700,000	10,786,724	7,000,0009,085,3977,000,0009,601,2577,000,000
Total Income	28,808,000	30,009,638	28,200,000	34,329,466	30,409,00031,155,91829,209,00032,954,39529,500,000
Payroll Paysheets	14,000,000	13,685,036	14,000,000	13,911,002	14,100,00014,150,91814,200,00014,210,08514,300,000
Payables Paysheets (incl. Managers’ fees)	6,280,000	3,534,294	6,300,000	5,889,571	6,000,0005,051,7906,000,0006,837,7315,000,000
Total Expenditure	20,280,000	17,219,330	20,300,000	19,800,573	20,100,00019,202,70820,200,00021,047,81619,300,000
Surplus / (Deficit)	8,528,000	12,790,308	7,900,000	14,528,893	10,309,00011,953,2109,009,00011,906,57910,200,000
Net Capital payments/(receipts)		5,200,000		3,050,000	16,200,00016,200,000
Balance at Bank (opening)		27,497,637		34,897,559	49,287,11347,387,934
Balance at Bank (closing)		34,897,559		49,287,113	47,387,93442,943,996
Allocated to Managers		26,040,500		35,012,303	38,560,01626,854,989
Money paid/(recovered) to/(from Manager)		3,000,000		5,000,000	9,000,0004,000,000

TABLE 2

	BARINGS	MORLEY	LEGAL AND GENERAL	TOTAL
TRANSACTIONS	Purchases	Sales	Purchases	SalesPurchasesSalesPurchasesSales
(1)	(2)	(3)	(4)	(5)(6)(7)(8)(9)
	£	£	£	£££££
(a) Gilts	0	0	9,808,365	9,708,187225,000010,033,3659,708,187
(b) Other Fixed Interest UK	0	0	333,330	000333,3300
(c) Other Fixed Interest Overseas	6,796,348	6,769,351	4,535,450	5,673,4900011,331,79812,442,841
(d) UK Equities	54,740,618	49,026,419	13,291,526	17,182,8461,000,000069,032,14466,209,265
(e) Overseas Equities Europe	9,505,753	7,094,660	5,819,457	6,813,204200,000015,525,21013,907,864
USA and Canada	1,975,942	2,013,783	1,991,995	2,068,940100,00004,067,9374,082,723
Japan	6,186,583	1,319,060	430,273	(50)006,616,8561,319,010
Smaller Pacific Markets	1,623,775	2,850,681	0	2,400,00075,00001,698,7755,250,681
Australia and New Zealand	1,122,576	2,183,584	0	0001,122,5762,183,584
Emerging Markets	2,400,000	0	10,910	673,007002,410,910673,007
(f) Property Unit Trusts	0	0	0	00000
	84,351,595	71,257,538	36,221,306	44,519,6241,600,0000122,172,901115,777,162

TABLE 3

APPENDIX

	BARINGS	MORLEY	LEGAL AND GENERAL	TOTAL
	30.09.06	31.12.06	Increase/ (Decrease)	30.09.0631.12.06Increase/ (Decrease)30.09.0631.12.06Increase/ (Decrease)30.09.0631.12.06Increase/ (Decrease)
(1)	(2)	(3)	(4)	(5)(6)(7)(8)(9)(10)(11)(12)(13)
	£	£	£	£££££££££
Gilts		19,248,843		19,164,903(83,940)22,825,94122,818,035(7,906)*27,904,147*28,067,548163,40169,978,93170,050,48671,555
Other Fixed Interest
UK		3,689,210		3,631,899(57,311)411,480332,469(79,011)0004,100,6903,964,368(136,322)
Overseas		12,843,899		12,247,834(596,065)12,447,51310,777,171(1,670,342)*13,084,539*12,675,433(409,106)38,375,95135,700,438(2,675,513)
UK Equities		253,242,132		274,352,79621,110,6643232,976,9441239,951,6106,974,666*259,193,740*276,263,20717,069,467745,412,816790,567,61345,154,797
Overseas Equities
Europe		51,336,315		58,278,0036,941,68847,113,37748,765,5451,652,168*58,767,861*63,062,5644,294,703157,217,553170,106,11212,888,559
USA and Canada		10,892,252		11,029,233136,98120,421,99820,607,164185,166*21,363,294*21,874,517511,22352,677,54453,510,914833,370
Japan		22,097,786		26,958,7804,860,994620,145,269520,514,787369,518*20,077,436*19,993,248(84,188)62,320,49167,466,8155,146,324
Smaller Pacific Markets		12,469,846		14,220,3201,750,474224,963,325424,987,01823,693*31,105,759*34,837,9483,732,18968,538,93074,045,2865,506,356
Australia & New Zealand		14,104,886		14,374,071269,18500000014,104,88614,374,071269,185
Emerging Markets		13,254,396		17,213,5643,959,168812,097,933712,818,161720,22800025,352,32930,031,7254,679,396
Property Unit Trusts		20,763,549		21,712,602949,05312,572,96313,064,564491,60100033,336,51234,777,1661,440,654
Cash		23,047,017		15,179,913(7,867,104)24,137,45932,762,3378,624,8785,534,4066,046,812512,40652,718,88253,989,0621,270,180
		456,990,131		488,363,91831,373,787430,114,202447,398,86117,284,659437,031,182462,821,27725,790,0951,324,135,5151,398,584,05674,448,541

	Includes £28,650,943 which is held in Managed Unit Trusts
	Includes £32,203,124 which is held in Managed Unit Trusts
*	Held in Managed Insurance Funds
	Held in Baring Emerging Markets Umbrella Fund
1	Includes £9,683,798 which is held in Norwich Union UK Smaller Companies’ Account
2	Includes £24,974,926 held in Morley Pooled Pensions South East Asia Fund
3	Includes £8,650,105 which is held in Norwich Union UK Smaller Companies’ Account
4	Includes £24,987,018 which is held in Morley Pooled Pensions South East Asia Fund
5	Includes £20,514,787 held in Morley Pooled Pension Japan Fund
6	Includes £20,145,269 held in Morley Pooled Pension Japan Fund
7	Includes £12,818,161 held in Aviva Portfolio Emerging A1
8	Includes £12,109,548 held in Aviva Portfolio Emerging A1

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