Private Equity Commitments

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Private Equity Commitments Council Extraordinary Meeting (29 November 2018) inc Public Excluded - Agenda MEETING AGENDA EXTRAORDINARY COUNCIL Thursday 29 November 2018 at 3.30pm COUNCIL CHAMBER LIARDET STREET NEW PLYMOUTH Chairperson: Mayor Neil Holdom Members: Cr Richard Jordan (Deputy) Cr Shaun Biesiek Cr Gordon Brown Cr Murray Chong Cr Harry Duynhoven Cr Richard Handley Cr Stacey Hitchcock Cr Colin Johnston Cr John McLeod Cr Alan Melody Cr Mike Merrick Cr Marie Pearce Cr Roy Weaver Cr John Williams 1 Council Extraordinary Meeting (29 November 2018) inc Public Excluded - Agenda Purpose of Local Government The reports contained in this agenda address the requirements of the Local Government Act 2002 in relation to decision making. Unless otherwise stated, the recommended option outlined in each report meets the purpose of local government and: Will help meet the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost-effective for households and businesses; Would not alter significantly the intended level of service provision for any significant activity undertaken by or on behalf of the Council, or transfer the ownership or control of a strategic asset to or from the Council. END 2 Council Extraordinary Meeting (29 November 2018) inc Public Excluded - Health and Safety Health and Safety Message In the event of an emergency, please follow the instructions of Council staff. Please exit through the main entrance. Once you reach the footpath please turn right and walk towards Pukekura Park, congregating outside the Spark building. Please do not block the foothpath for other users. Staff will guide you to an alternative route if necessary. If there is an earthquake – drop, cover and hold where possible. Please be mindful of the glass overhead. Please remain where you are until further instruction is given. 3 Council Extraordinary Meeting (29 November 2018) inc Public Excluded - Apologies APOLOGIES None advised 4 Council Extraordinary Meeting (29 November 2018) inc Public Excluded - Deputations ADDRESSING THE MEETING Requests for public forum and deputations need to be made at least one day prior to the meeting. The Chairperson has authority to approve or decline public comments and deputations in line with the standing order requirements. PUBLIC FORUM Public Forums enable members of the public to bring matters to the attention of the committee which are not contained on the meeting agenda. The matters must relate to the meeting’s terms of reference. Speakers can speak for up to 5 minutes, with no more than two speakers on behalf of one organisation. None advised DEPUTATIONS Deputations enable a person, group or organisation to speak to the meeting on matters contained on the agenda. An individual speaker can speak for up to 10 minutes. Where there are multiple speakers for one organisation, a total time limit of 15 minutes, for the entire deputation, applies. None advised 5 Council Extraordinary Meeting (29 November 2018) inc Public Excluded - Table of Contents REPORTS 1 PIF Quarterly Report 2 PRIP Quarterly Report 3 TRFU Venue Hireage 4 Proposed Freedom Camping Bylaw Review 5 Exclusion of the Public END 6 1 Council Extraordinary Meeting (29 November 2018) inc Public Excluded - PIF Quarterly Report PERPETUAL INVESTMENT FUND PERFORMANCE REPORT SEPTEMBER 2018 PURPOSE 1. The purpose of this report is to present the performance of the Perpetual Investment Fund (PIF) for the quarter ended 30 September 2018. RECOMMENDATION That having considered all matters raised in the report, the report be noted. SIGNIFICANCE AND ENGAGEMENT 2. This report is provided for information purposes only, and has been assessed as being of some importance. DISCUSSION Fund Performance 3. Attached is the summary report from Mercer’s. 4. The performance of the fund over the past 12 months is 8.6% after costs. The fund balance is currently $294.4 million. Release payments total of $8.2 million over the past 12 months are in line with the budget and have been paid out from the fund. 5. As outlined in the Mercer’s report the Fund is sitting within all its Strategic asset allocation ranges as per the SIPO (Statement of Investment Policy and Objectives). Tasmanian Land Company Ltd Group 6. A dispute over an additional milk solids payment from Fonterra Australia has delayed the windup of the group until such time that this is resolved. 7. TLC have been unable to reach a commercial settlement with Moon Lake and have instigated legal proceedings. A jurisdiction hearing has directed the case be heard in Tasmanian. It is hoped that an initial directions hearing will be held before the end of the Calendar year. 8 1 Council Extraordinary Meeting (29 November 2018) inc Public Excluded - PIF Quarterly Report FINANCIAL AND RESOURCING IMPLICATIONS 8. This report is produced within existing resources and budgets. IMPLICATIONS ASSESSMENT This report confirms that the matter concerned has no particular implications and has been dealt with in accordance with the Local Government Act 2002. Specifically: Council staff have delegated authority for any decisions made; Council staff have identified and assessed all reasonably practicable options for addressing the matter and considered the views and preferences of any interested or affected persons (including Māori), in proportion to the significance of the matter; Any decisions made will help meet the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost-effective for households and businesses; Unless stated above, any decisions made can be addressed through current funding under the Long-Term Plan and Annual Plan; Any decisions made are consistent with the Council's plans and policies; and No decisions have been made that would alter significantly the intended level of service provision for any significant activity undertaken by or on behalf of the Council, or would transfer the ownership or control of a strategic asset to or from the Council. APPENDICES Appendix One Mercer Quarterly PIF Performance June 2018 REPORT DETAILS Prepared By: Alan Bird (CFO) Team: Business Services Approved By: Alan Bird (CFO) Ward/Community: District Wide Date: 21 November 2018 File Reference: ECM -------------------------------------------------------End of Report --------------------------------------------------- 9 1.1 Council Extraordinary Meeting (29 November 2018) inc Public Excluded - PIF Quarterly Report QUARTERLY REPORT NPDC PERPETUAL INVESTMENT FUND September 2018 10 1.1 Council Extraordinary Meeting (29 November 2018) inc Public Excluded - PIF Quarterly Report CONTENTS • Fund overview – Fund size, returns and distributions – Financial markets update – Market outlook • Fund performance • Asset allocation • Compliance statement • Appendices – Additional performance information – Manager list – Manager ratings – DAA – Portfolio characteristics – Benchmarks – Fees © MERCER 2018 1 11 1.1 Council Extraordinary Meeting (29 November 2018) inc Public Excluded - PIF Quarterly Report FUND OVERVIEW © MERCER 2018 2 © MERCER 2018 2 12 1.1 Council Extraordinary Meeting (29 November 2018) inc Public Excluded - PIF Quarterly Report FUND OVERVIEW Fund size $294.4m Returns (after fees) Since inception 5 years 1 year 3 months (Nov 2004) 6.8%p.a. 9.9%p.a. 8.6% 3.0% Distributions to Council (Release payments) Since inception 5 years 1 year (Nov 2004) $206.3m $39.8m $8.2m Nb – Implementation of Guardian and Full Outsource Agent (Mercer) model took effect March 1 2017. Results and distributions incorporate TIML results for period prior to March 1. © MERCER 2018 3 13 1.1 Council Extraordinary Meeting (29 November 2018) inc Public Excluded - PIF Quarterly Report FINANCIAL MARKETS UPDATE • Overseas Shares continued their trend upwards in the (NZ dollar hedged) ending the quarter roughly where third quarter of 2018. Strong corporate earnings it started. The Fed’s signalling, and then follow results saw markets climb in July, before the through with a rate hike during the quarter drove complications of continued tense trade negotiations down Government bond prices (-0.6%), while between the US and the rest of the world saw tightening credit spreads saw corporate bonds progressively weaker and more disparate returns in (+0.8%) generally move upwards. August and September. Developed market shares returned +5.3% over the quarter in local terms. • The New Zealand dollar continued on its downward trend over the quarter, falling against all major • Global Fixed Interest barely made any ground in July currencies except for the Japanese Yen (+0.4%). and August, before losing gains in September. This saw the Bloomberg Barclays Global Aggregate Index © MERCER 2018 4 14 1.1 Council Extraordinary Meeting (29 November 2018) inc Public Excluded - PIF Quarterly Report MARKET OUTLOOK • The International Monetary Fund (IMF) has just released its latest economic forecast, suggesting that global growth will remain at a healthy level through to 2019. The US continues to lead the way, with low unemployment and rising wages, which is why the Federal Reserve is committed to its path of raising rates. While Europe is not growing as strongly, growth seems quite robust, despite the challenge of Brexit and trouble in Italy. • But as always, there are risks that could derail investment markets. Chief among them is the shift from expansionary to tightening monetary policies, led by the US. Rising US interest rates increase the cost of borrowing, make term deposits more attractive, and push up the US dollar. Add in the negative impacts of trade measures – and the threat of more – and it is easy to see why some markets have been found out, particularly those emerging market economies with high levels of debt. Political risks, Brexit and the US mid-term elections among others, add yet another layer of risk. • Economic growth should continue to support share prices as company earnings benefit from greater economic activity. Tightening monetary conditions will provide headwinds to those assets sensitive to interest rate movements, such as fixed interest and to a lesser extent, property.
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