Pension Fund Annual Report Is Available on Acquisition and Disposal Costs Request from the Corporate Service Group Director
Total Page:16
File Type:pdf, Size:1020Kb
40690-40 Pension 2013 Cover IMPOSED_Layout 1 11/10/2013 11:06 Page 1 40690-40 Pension 2013 Cover IMPOSED_Layout 1 11/10/2013 11:06 Page 2 Contents Barn yr Archwilwyr yr Barn Nodiadau ar Gyfrifon Cronfa Pensiynau Cronfa Gyfrifon ar Nodiadau Datganiad o’r Gwir Asedau Asedau Gwir o’r Datganiad Introduction........................................................................1 Gronfa y Cyfrifon doda ryCfio ........................................27 Cyfrifon y ar Adroddiad Summary..............................................................................2 ..............................44 Cyfranwyr y Cyswllt Manylion Participating Employers Gydymffurfiaeth o Datganiad - Myners Buddsoddi Egwyddorion Datganiad o Egwyddorion ar gyfer Buddsoddi gyfer ar Egwyddorion o Datganiad Contributors ............................................43 Cynllun y ar Cipolwg Pension Panel Members Buddsoddiadau o’r Rhestr Casgliadau o’r Cyfranddaliadau Mwyaf Cyfranddaliadau o’r Casgliadau Partners Ychwanegol Gwirfoddol Cyfraniadau Sut mae’r cyfranddaliadau wedi’u rhannu ymhlith y gwledydd y ymhlith rhannu wedi’u cyfranddaliadau mae’r Sut Cyflwyniadau Dadansoddiad o’r Buddsoddiadau o’r Dadansoddiad Administration Report ............................................7 Gwefan Trefniadau Gwarchod Trefniadau Introduction Gymorth Desg Gwir golledion / Elw drwy Werthu Buddsoddiadau Werthu drwy Elw / golledion Gwir 2014 Scheme Reforms Llywodraethu Trefnau Manylion Rheolwyr y Gronfa y Rheolwyr Manylion HMRC Pension Tax Changes ........................39 Cyfathrebu Faterion ar Adroddiad State Pension Reform Gronfa y Rheolwr Cyflawniad Hynt y Buddsoddiadau y Hynt Auto-Enrolment Actwari yr Adroddiad Rheolaeth ar Faterion Buddsoddiadau Faterion ar Rheolaeth Pension Liberation Cyflwyniad Cyflwyniad All Wales Collaboration ............................................35 Actwari yr Adroddiad Performance Information ................15 Buddsoddiadau Faterion ar Adroddiad Membership Numbers Membership Analysis Actuary’s Report ....................................................35 Introduction Aelodaeth o'r Dadansoddiad Actuarial Position Aelodau yr Nifer Gwybodaeth ynghylch Cyflawniad ynghylch Gwybodaeth Investment Report ................................................15 Communication Report ........................................39 Awtomatig Cofrestru’n Introduction Governance Arrangements 2014 Cynllun i’r Diwygiadau Investment Management Helpdesk Cyflwyniad Investment Performance Website ............................7 Gweinyddu Materion Adroddiad Fund Manager Performance Presentations Details of Fund Managers Additional Voluntary Contributions Partneriaid Realised Profits/Losses on Sale of Investments Pensiynau Panel o’r Aelodau Custodial Arrangements The Scheme at a Glance ........................................43 Cyfranwyr Fund Manager and Advisor Fees cynllun y yn rhan cymryd sy’n Cyflogwyr .............................................................................. 2 Analysis of Investments at Fair Value Contributors Contact Information ........................44 Crynodeb Geographical Spread of the Fund .......................................................................... 1 Largest Share Holdings Cyflwyniad Statement of Investment Principles Myners Compliance Statement Accounts Report ....................................................27 Cynnwys Fund Account Net Asset Statement Notes to the Pension Fund Accounts Audit Opinion Steve Merritt, C.P.F.A. Group Director Corporate Services Introduction Welcome to this year’s Pension Fund Report, which provides an overview of the Fund’s performance and key activities over the past year. As reported in recent years and since the financial turmoil of 2008, the resulting uncertainty across the global economy over the last twelve months have yet again proved another challenging period for investors. However, I am pleased to report that against the continued backdrop of volatile financial markets, sovereign debt concerns and government austerity interventions, the RCT Fund was able to deliver a healthy investment return of 16%, with the Fund value breaching £2 billion in the last quarter of 2012/13. Looking ahead, it is anticipated that the economic uncertainty and austerity measures are likely to continue for some time yet. Recent market volatility was caused by unease over whether the US Federal Reserve would scale back its stimulus, and whilst the subsequent decision to postpone spurred a rally, we are mindful that the global markets will react when the policy decision is eventually taken. This instability does not bode well for investors or Employers alike in the short term, and although our diverse range of assets and Fund Manager styles has served us well to date, I do believe that this is an opportune time to reflect on our current position and exposure. The Investment Panel have instigated an asset liability review to ensure that we continue to balance risk and reward, with our ability to match the Fund’s liability profile over the long-term. The consultation in respect of the new LGPS Scheme has concluded, as the implementation date of April 2014 looms ever closer. It is hoped that the detail is disseminated at the earliest opportunity in order to afford adequate implementation planning and preparatory time. The next actuarial valuation of the Fund effective from 01st April 2014 is fully underway. We have commenced the relevant work in earnest and agreed the actuarial assumptions. Employers will be notified at the earliest opportunity on concluding the results to help support their budget setting process. During the year in collaboration with the other Welsh Pension Funds, the RCT Fund actively participated in a review which examined the future organisational structure of LGPS Funds in Wales, with the aim of improving efficiency and service standards across Wales. Following an interim ‘Working Together’ report in March 2013, it was agreed that this project would be explored further during 2013/14. As ever, I hope that the information held in the report is helpful, and if you feel it could be improved we would welcome your suggestions. Steve Merritt, C.P.F.A. 1 Group Director Corporate Services Summary Participating Employers Administering Authority Scheduled & Designated Bodies Rhondda Cynon Taf County Borough Council Amgen Cymru Admitted Bodies Brackla Community Council Bridgend College Agored Cymru Bridgend County Borough Council Capita Glamorgan Consulting Bridgend Town Council (no active members at present) Care Council for Wales Careers Wales Association Central South Consortium Careers Wales - Mid Glamorgan and Powys Limited Coleg Morgannwg Finance Wales Investment Coychurch Crematorium Joint Committee Finance Wales Plc ESIS Halo Leisure Garw Valley Community Council Local Government Data Unit Gelligaer Community Council Maesteg Town Hall Llanbradach Community Council Merthyr Tydfil Institute for the Blind (no active members at present) Llanharry Community Council Merthyr Valley Homes (no active members at present) Penywaun Enterprise Partnership Llantrisant Community Council RCT Homes Llantwit Fardre Community Council Valleys to Coast Housing Llwydcoed Crematorium Joint Committee VINCI Construction UK Limited Maesteg Town Council Welsh Government (former Welsh Development Agency) Merthyr College Welsh Joint Education Committee (WJEC) Merthyr Tydfil County Borough Council Police and Crime Commissioner for South Wales Definition of Bodies Pontyclun Community Council Scheduled Bodies Pontypridd Town Council These include County Councils, Police Authorities and the Environment Agency among many others. Royal Welsh College of Music & Drama South Wales Fire Authority Designated Bodies Designated bodies, such as Community Councils have to South Wales Valuation Tribunal pass a resolution stating whom within their employment Tonyrefail Community Council can join the scheme. University of Glamorgan Admitted Bodies Wales Probation Trust Admitted Bodies can participate in the scheme by means Ystrad Mynach College of an admission agreement. These Admitted Bodies may state whether all or some of their employees can join the Scheme. 2 Contributors page (Who’s Who) Head of Service Pensions, Payroll & Payments - Ian Traylor Ian joined Local Government in 1990 with the former Mid Glamorgan County Council and transferred to Rhondda Cynon Taf during the 1996 re-organisation. Ian has a well-established background in financial control / risk management with a primary career spent in Internal Audit. More recently joined the Pensions Service in 2006 and is an active member of the Pensions Investment Panel. Senior Accountant, Treasury and Pension Fund Investments - Yvonne Keitch With 31 years experience within local government, Yvonne is responsible for the administration of the pension fund investments. Yvonne has been the fund’s Investment Manager since 1995. Pension Fund Accountant - Ryan Emmett Ryan is responsible for assisting the Investment Officer in the maintenance and closure of the Pension Fund accounts, having gained a BSC in Mathematics from Cardiff University; Ryan has 17 years experience with Rhondda Cynon Taf County Borough Council and has been in his current post since January 2003. Communications - Catherine Black Catherine joined us in 2013. Previously she worked in an in-house pension administration department of a large multi-national retailer, where her role involved implementing regulatory changes, calculating member benefits and delivering presentations to scheme members. 3 Pension Panel Members