Meeting documents

Purpose of the Report

1 To provide the Committee with an overview of the transactions undertaken during the period 1st October 2007 to 31st December 2007, 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 2007 Barings had £41,915,256, Morley had £72,244,166 and Legal and General had £9,008,426 available for investment. During the quarter, Barings has invested a net amount of £390,914, Morley has disinvested a net amount of £4,329,967 and Legal and General has invested a net amount of £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	2.6	10.1	16.2
Morley	1.8	9.3	12.9
Legal & General	0.7	8.5	14.2
Median	0.6	7.9	13.9

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 2008 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 2007 and to the forthcoming Fund restructure it is recommended that there be no allocation of monies to the Managers.

The Value of the Fund

7 The changes in the value of the Fund during the period 30th September 2007 to 31st December 2007 are shown in Table 2 in the Appendix.

Recommendation

8 Having regard to the cash balance of the Fund at 31st December 2007 and to the forthcoming restructure of the Fund. It is recommended that there be no allocation of monies to the Managers.

Contact: Paul Turner Ext: 3571

Attachments