Agenda item

Consideration was given to the report of the Corporate Director, Resources which informed Members of the overall value of the Pension Fund as at 30 September 2013, and of any additional sums available to the Managers for further investment, or amounts to be withdrawn from Managers (for copy see file of Minutes).

In presenting the report Hilary Appleton, Strategic Finance Manager – Corporate Finance advised that the amount allocated to each Manager was subject to the need to retain money in the Durham County Council Pension Fund bank account to meet the Fund’s net cash outflow. It was recommended that £15m be withdrawn from the sums allocated to the Managers for investment in the quarter. To reduce transaction costs pending a full re-balancing upon completion of the review, it was recommended that this amount be withdrawn from the BlackRock Pooled Fund.

Councillor Martin asked if the position had been reached where there should be no further investment of dividend income, in view of the cash flow position per quarter and the need to shift money between Managers. Robbie Bowker, Adviser responded that this could be explored given that new Managers were to be appointed.

In response to a question from Councillor Carr about the impact of a further reduction in the number of employees in the Scheme, Hilary Appleton explained that the Triennial Valuation would take into account the downward trend of contributing employees. It was also pointed out that an increase in the number of employees eligible to claim a pension would have a greater impact on the Pension Fund.

Don McLure added that the cautious and prudent approach taken in the last Triennial Review would have a positive impact this time around.

Resolved:

That the information given be noted and £15m be withdrawn from the BlackRock Pooled Fund for the reasons outlined in the report.