Cheshire Pension Fund Annual Report 2008-09 Forward 1
Annual Report 2008-09
Management Structure 2
Governance Report 4
Administration Report 8
Investment Report 14
Auditor’s Report 24
Financial Statements 28
Notes to the Accounts 32
Actuarial Statement 42
Participating Employers & Publications 44
Contacts & Further Information 45
Cheshire Pension Fund Annual Report 2008-09 Foreword 1
Welcome to the Annual Report of the Cheshire A new Pension Fund Committee and The Fund’s investments were a victim of the
Pension Fund for the financial year 2008-09. governance arrangements came into being on collapse in equity markets and other asset prices as
the 1 April 2009 and this is covered in more detail investors sold out of risky assets. A negative return
2008-09 was a year of landmark events being the
in the Governance section of this report. Governance of -21.5% against a benchmark return of -16.8% was
lead up to Local Government Reorganisation (LGR)
arrangements and transparency continue to be major disappointing as the Fund’s investment managers
This saw the disbanding of the former administering
themes for Local Government Pension funds so we struggled in such a difficult environment. At the time
authority to the Fund, Cheshire County Council and
have also set up a new Pension Consultative Forum of writing, markets have appeared to stabilise and
also the six district councils to be replaced from
to provide a platform for stakeholders in the Fund recover some of these losses and with a valuation year
1st April 2009 by two new unitary authorities –
to participate in our Governance Arrangements. fast approaching we hope this recovery continues.
Cheshire West and Chester and Cheshire East
Councils respectively. I would like to thank all employers and their Mark Wynn
HR and payroll teams who worked with us Head of Finance, Cheshire West and Chester Council.
Responsibility for the administration of the Fund
to deliver a seamless implementation of
transferred by statute to the new Cheshire West and
the “New Look” LGPS from 1 April 2008.
Chester Council and it is in my responsibility as Head
of Finance of this authority that I write this foreword. And last but not least, 2008-09 will long
be remembered as the year when the global
LGR brought many challenges, most notably on
financial markets went into meltdown requiring
the workloads of the department, further details of
unprecedented Government intervention
which are included in the Administration section of
across the globe to prop up the banking
this report. LGR also brought about the end of long
systems, followed by every major developed
established governance arrangements and I would
market entering recession as the world
like to take this opportunity to thank former Officers
faced a global recession.
of Cheshire County Council and former members
of the Pensions Investment Panel for the skills,
experience, knowledge and unstinting commitment
and dedication they brought to the management
of the Fund’s business over many years.
Administering Authority up to 31 March 09
Cheshire County Council
Administering Authority post 1 April 09
Cheshire West and Chester Council
Pensions Investment Panel up to 31 March 09
Councillor C Bain
Cheshire County Council, Chairman
Councillor P Mason
Cheshire County Council, Vice Chairman
Councillor G Cousins
Cheshire County Council
Councillor D Newton
Cheshire County Council
Councillor A Richardson (Deceased)
Cheshire County Council
Councillor L Toale
Cheshire County Council
Councillor B Wolstencroft
Cheshire County Council
Councillor F Bruce
Warrington Borough Council
Councillor M Wharton
Halton Borough Council
Councillor F Keegan
Cheshire District Councils
Mr M Dolman
Unison, Employee Representative
Cheshire Pension Fund Annual Report 2008-09 Management Structure 3
Pension Fund Committee post 1 April 09 Cheshire County Council Officers Investment Managers Custodian
up to 31 March 09
Councillor P Mason Adams Street Partners BNY Mellon Asset Servicing
Cheshire East Council, Chairman Paul Heath Private Equity
Director of Policy & Resources
Councillor W Fitzgerald* Baillie Gifford AVC Providers
Cheshire East Council Bill Tunnicliffe Fixed Income & Equities
County Finance Officer Clerical Medical
Councillor F Keegan European Credit Management
Cheshire East Council Mark Wynn Secured Loans Equitable Life
Head of Corporate Finance Standard Life
Councillor J Narraway* GMO
Cheshire East Council Nick McGinn Global Equities
Principal Solicitor Investment Consultant
Councillor D Beckett* Goldman Sachs Asset Management
Cheshire West and Chester Council Fixed Income
Cheshire West and Chester Council John Hastings
Councillor K Birtwistle* Henderson Hymans Robertson LLP
Officers post 1 April 2009
Cheshire West and Chester Council Fixed Income
Councillor B Crowe* Julie Gill Legal & General Actuary
Cheshire West and Chester Council Director of Resources Equities, Index Tracking
Mark Wynn John Wright
Councillor H McNae* Lexington Capital Partners
Head of Finance Hymans Robertson LLP
Cheshire West and Chester Council Private Equity
Stephan Van Arendsen Mellon Capital
Councillor F Bruce Senior Manager, Corporate Finance Auditors
Global Tactical Asset Allocation
Warrington Borough Council
Nick McGinn M&G Judith Tench
Councillor M Wharton Principal Solicitor District Auditor, Audit Commission
Halton Borough Council
Mrs O Kokkinis Private Equity
Unison, Employee Representative Rockspring
* Newly elected councillors. Standard Life
Cheshire West and Chester Council is the new
administering authority of the Cheshire Pension
Fund, responsible for all aspects of managing the
Fund including receipt of employer and employee
contributions, payment of benefits, investment
of the Fund’s assets and maintaining financial
and personal records.
Cheshire West and Chester Council administers
the Fund for its own employees, for Cheshire East
Borough Council, Warrington and Halton Unitary
Authorities and 88 other approved bodies.
The Fund takes corporate governance and social
responsibility seriously. We are responsible for
ensuring business is conducted in accordance with
the law and proper standards and that public money
is safeguarded, properly accounted for and used
economically, efficiently and effectively.
It is important that the Fund’s governance is
transparent and information about investments,
service levels and performance is readily available
to members, employers, statutory bodies and any
other interested parties. We achieve this through
a series of publications which can be found on
the Fund’s website www.cheshirepensionfund.org
Cheshire Pension Fund Annual Report 2008-09 Governance Report 5
Pension Fund Committee Pension Fund Committee
Local Government Reorganisation (LGR) Terms of Reference
In 2008-09 Cheshire was subject to LGR which The PFC will exercise the Authority’s responsibility
meant the disbanding of the County Council and for the management of the Fund including the
six district councils, with the formation of two management of the administration of the benefits
borough Councils, Cheshire West and Chester and the strategic management of the Fund’s assets.
and Cheshire East. The two new organisations This includes:
became effective from 1 April 2009, and resulted
• Meeting quarterly or otherwise as necessary
in four former Members retaining their seat on to effectively monitor investment strategy
the Pension Fund Committee (PFC) and six newly
• Overall responsibility for the investment
elected members joining the PFC.
strategy and monitor overall performance
To support the new members in the lead up • Appointment and termination of investment
to April 2009, new members underwent a thorough managers
training programme including a three day Local • Setting performance benchmarks and targets
Government Trustees Training course run by the for investment managers
Local Government Employers (LGE). This was • Review governance arrangements and the effective
supplemented by a two day training course on the use of its advisors to ensure good decision making
internal workings of the Cheshire Fund. The new
• To oversee the Pension Consultative Forum (PCF)
members were also invited to attend as observers arrangements and compliance with best practice
at the February Pensions Investment Panel.
• Receive regular updates from (PCF) on
Scheme administration to ensure that best
practice standards are met and communicate to
stakeholders that the Fund is being run effectively.
• To approve and maintain a Statement of
Investment Principles, Funding Strategy
Statement, Governance Policy and publish
a Pension Fund Annual Report.
6 Cheshire Pension Fund Annual Report 2008-09 Governance Report
New Pension Consultative Forum Representation Pension Consultative Forum
Stakeholder Representation Councillor Peter Mason Terms of Reference
Chairman, Cheshire East Council
The Fund is keen for all stakeholders to participate The role of the PCF is to ensure that best practice
in its governance arrangements and in accordance Head of HR, Cheshire East Council standards are satisfied, published targets are met
with the Government’s best practice principles and and that an efficient and professional service is
following consultation with employers and members, Borough Treasurer & Head of Assets, provided to all stakeholders. Its main responsibilities
a Pension Consultative Forum (PCF) was created. Cheshire East Council will include:
Nicola Pierce HR Strategy Consultant,
The PCF will ensure a better shared understanding of Cheshire West and Chester Council • Bring stakeholder perspective to the aspects
the many challenges facing the Administering Authority, Joanne Jones of the Fund’s business covered by the Terms
employers, admitted bodies, housing trusts, colleges HR Manager, Cheshire Police Authority of Reference
and members of the scheme and will facilitate the Darren Griffiths • To discuss minutes and updates from the Pension
effective communication between fund stakeholders Head of Finance and Governance,
Cheshire Fire Authority Fund Committee and ensure a flow of information
and officers of the Administering Authority.
Derek Hughes from the committee to the Fund’s stakeholders
Finance Manager, • Approve and monitor the Pension Administration
Cheshire Probation (Admitted Bodies)
Strategy Statement which covers service
Director of Finance, University of Chester (Colleges) standards, policies and benchmarking
Danny Mather • To agree and monitor the performance
Head of Financial & Business Planning, of the agreed service levels between the
Warrington Borough Council
Administering Authority and Fund Employers
Operational Director Financial Services, • Review and approve the Administering
Halton Borough Council
Authority’s Discretionary Policies
Deputy Chief Executive, • Respond to Government consultations relating
Chester and District Housing (Housing Trusts) to the administration and benefits of the LGPS.
Unison, Cheshire West and Chester Council
Unison, Cheshire East Council
Cheshire Pension Fund Annual Report 2008-09 Governance Report 7
Delegation The Head of Finance and officers in Corporate The Head of Finance will approve admission into
Finance will have specific responsibility for: the Cheshire Pension Fund, employees of authorities
The Administering Authority has delegated
and bodies as prescribed in the Regulations, subject
the following responsibilities:- • Preparation and maintenance of the accounts
to an approved Admission Agreement, and subject
of the Pension Fund, including the Pension Fund
The Director of Resources is responsible for to any necessary indemnities as appropriate.
Annual Report and Business Plan.
setting the appropriate funding target for the Fund.
In addition, the Head of Finance and his staff have
• Advising and servicing the Pension Fund Committee
Day to day responsibility is delegated to the Head delegated responsibility for the effective discharge
and other Pension Fund investment meetings.
of Finance, who will carry out, in consultation with of the LGPS administration function including:
• Maintaining regular dialogue with the Fund’s
the Pension Fund Committee; the requirement to
advisers, investment managers and custodian. • Record keeping
review the investments made by the Fund Managers
and will report to each meeting of the Pension Fund • Monitoring and reconciling of investment manager • The calculation and authorisation
Committee on the exercise of this delegation. and custodian records. of benefit payments
• Preparation and maintenance of the Fund’s • Provision of membership data
In addition the Head of Finance will execute
Statement of Investment Principles and compliance for actuarial valuation purposes
documentation relating to the implementation of a new
investment mandate or existing investment mandates. with the requirements under the Myners review. • Preparation and maintenance of the Funding
• Monitoring the activity and performance Strategy Statement, the Governance Policy
Day to day management of the Fund’s investments has
of the Fund’s investment managers including Statement, the Communication Policy Statement,
been delegated to the external investment managers
compliance with policy and performance objectives. and the Pensions Administration Strategy
in accordance with their mandates, details of which
are set out in the Statement of Investment Principles. • Interpretation and implementation of new legislation.
• Monitoring the corporate governance activity
of the Fund.
• Ensuring appropriate research is undertaken
into new investment initiatives.
This Year has proved to be an exceptional one
in terms of the administration of the LGPS in
general and the Cheshire Pension Fund in
particular. Not only did we see the introduction
of the ‘New Look’ LGPS from April 2008, but
we also had to plan for Local Government
Reorganisation (LGR) and the impact this would
have on our workloads and resources. It is testament
to the dedication and professionalism of the pension
staff that these challenges were met whilst also
maintaining a high level of service to all stakeholders.
The introduction of the ‘New Look’ LGPS meant
all stakeholders needed to be fully aware and
prepared for the changes. This involved the Fund
working closely with all participating employers to
ensure information was relayed to those concerned
and responsible for it. An extensive publicity
campaign was undertaken which included:
• Presentations to Scheme Members and Employers
• Roadshows and drop in sessions
• Posters outlining the key differences
between the new and old schemes
• Updates available on-line via internet
• Scheme Literature (booklets, leaflets etc).
Cheshire Pension Fund Annual Report 2008-09 Administration Report 9
In addition to raising awareness of the changes The transfer of the Administering Authority role • Benefits and Leavers Team Responsible for
brought about by the introduction of the new scheme, to Cheshire West and Chester Council also meant the large volume of day to day case work for the
we worked closely with our software provider to that all of our scheme literature, stationery and leavers from the Scheme including all types of
ensure the changes to the benefit calculations website required updating. The Fund took this as retirements, deferred pensioners, transfers out,
were implemented accurately to reflect the new an opportunity to rebrand all scheme literature and estimates
calculation methods and as soon as possible. with the Fund’s logo becoming more prominent
• Actives Team Responsible for dealing with those
on our materials and products.
LGR brought about a further challenge to our current members of the Scheme who wish to
administration activity as responsibility for the investigate transferring previous pension rights
Staffing Structure into the LGPS as well as providing information
administration of the Fund transferred from Cheshire
County Council to Cheshire West and Chester Council. During 2008 the Management Team undertook for anyone who wants to improve their retirement
From the outset the message from the Fund was that a comprehensive review of the staffing structure in benefits by paying additional contributions.
it was business as usual and any disruption would order to meet the challenges ahead. A new structure • Systems Team Responsible for maintaining our
be kept to an absolute minimum. All pension staff was put in place which is now aligned to our desire pension system database and other integrated
transferred to the new authority on 1 April 2009 to continually improve our service standards and office systems as well as testing new software
which meant their knowledge and expertise was delivery and to meet the changing demands of the releases and processes and system improvements
retained. The transition was seamless, with no LGPS. We will continue to monitor our structure by working closely with practitioners from the
disruption to our ability to deliver a high level of to ensure that we are working as efficiently and other teams.
service. The most significant impact of LGR was effectively as possible.
• Communications Team Responsible for ensuring
caused by the increased number of early retirement
As a consequence of the review, we have created our major communication exercises are met.
estimates and subsequent ‘actual’ retirement
the following teams. The production of scheme publications, delivery
cases processed by the Section. Resources were
of road-shows, website maintenance and delivery
re-allocated to ensure all estimates and retirements • Data Management Team Responsible for handling of in–house training and technical support.
were calculated and processed within the timescales the major processes required to support our large
agreed between the Fund and the seven legacy councils. document image system, as well as data integrity
and record maintenance. As the Helpdesk, they
also act as first point of contact for all new queries.
10 Cheshire Pension Fund Annual Report 2008-09 Administration Report
Staff Development / Training
The Fund recognises that its most valuable resource
is its staff. As a consequence the Fund encourages
all staff to fulfil their potential through a staff
development and training program. Our staff need
to be able to adapt to the changes in the regulatory
framework which governs the pensions industry.
This is achieved through a combination of external
courses, in-house training and specialist training
arranged in partnership with the Local Government
Employers (LGE) training unit. In addition to this,
several staff have been successful in gaining
qualifications which are recognised throughout
the pensions industry.
Working With Employers
We view our relationship with Fund employers as
one of an important partnership, working together
to achieve common goals. One of our principal roles
is to ensure employers understand the key aspects
of the LGPS, as well as making them fully aware of
their responsibilities in terms of the administration
of the scheme. One of the ways we achieve this is
by inviting employers to attend training sessions
which are tailored to meet their requirements. This
represents an on-going commitment by both parties
as the regulations governing the LGPS are continually
amended, and employers experience a turnover of
their staff experienced in pensions administration.
Cheshire Pension Fund Annual Report 2008-09 Administration Report 11
Employer Handbook Membership Statistics New Employer Admissions to the Fund
Upon admittance to the Fund, each employer is issued The total membership of the Fund increased During the year the Fund admitted five new employers
with a copy of the administration Handbook which again this year. The number of pensioners and into the scheme. Pensions staff supported them
covers all aspects of their responsibility in deferred members is increasing at a faster rate through the admission process to ensure they were
the LGPS. The handbook also includes copies of than active members, continuing the growing maturity fully aware of their roles and responsibilities in terms
all forms employers are required to complete. of membership that we have seen previously. The of pensions administration.
The handbook is constantly updated and revised increasing number of deferred benefits reflects
to reflect the current legislative position. An on-line modern working trends and career choices, with more Organisation Type of Employer
version of the handbook has also been made available people engaged in multiple employments and fewer Poulton with Fearnhead Scheme
so employers can be assured that the information they people staying in the same job for life. Parish Council Employer
are accessing is as accurate and as up to date
Innovate Services Best Value
as possible. March 06 07 08 09 Limited Contractor
Contributors 30,242 30,888 31,534 32,499
FOCSA Services (UK) Best Value
On-line Employer Portal Pensioners 17,622 17,901 18,558 19,009
This year, we have been busy developing our new Deferreds 12,455 13,927 15,225 16,329 Scheme
North West Fire Control
website which was launched in September 2009
Total 60,319 62,716 65,317 67,837
The website has its own domain name: Catering for Education Best Value
www.cheshirepensionfund.org and includes (Colleges ) Contractor
a dedicated employer portal which will only be Fund Membership as at 31 March 2009
accessible by Fund employers using a unique login
and password supplied by the Fund. The portal will be 28%
used by the Fund to share information with employers
and allow them to download specific on-line forms.
12 Cheshire Pension Fund Annual Report 2008-09 Administration Report
Service Standards Performance 2008-2009
Our current service standards incorporate the industry Letter Detailing Transfer in Detail 91.75%
recognised Chartered Institute of Public Finance
and Accountancy (CIPFA) standards. The target is Letter Detailing Transfer Out Quote 82.89%
measured from the point at which the last piece of Processing a Refund 62.36%
information needed for the calculation is received,
in line with the national CIPFA benchmarking. Retirement Estimates 99.92%
Actual Retirement Letter 92.4%
The chart below summarises how the Fund has
performed against national benchmarked standards. Death Acknowledgement 84.02%
As a member of the CIPFA benchmarking club this
Dependent Benefits Letter 85%
data will be submitted so that we can compare
ourselves to all other members of the club and also to Deferred Benefits Notification 70.18%
a number of comparator LGPS Funds.
0% 20% 40% 60% 80% 100%
It is important to note that we rely heavily on third We believe our overall performance, in what has
parties to provide accurate and timely information to been a very challenging year, will compare favourably
be able to process cases within target. The majority of to our comparators. At the same time we recognise
information is supplied to us by our employers, their the need to constantly review all procedures and
payroll providers and scheme members themselves. processes to further improve our performance.
Cheshire Pension Fund Annual Report 2008-09 Administration Report 13
Cases Processed Case Type Actual Actual
Quotations Calculations Quotations Calculations
Although LGR brought about a significant increase Provided Provided Provided Provided
in workloads, we have worked hard to ensure that 2007/08 2007/08 2008/09 2008/09
all of our members and employers continue to receive Retirements 2,324 1,102 3739 1309
a high quality standard of service. In addition to this, Transfer In 931 861 525 493
delays in the issuing of amendment regulations from Transfer Out 633 425 258 228
Communities & Local Government relating to transfer
Refunds n/a 555 n/a 301
values meant that calculations were ‘stockpiled’
Deferred benefits 77 3,389 65 2780
for a period which resulted in a significant backlog.
Throughout this period, the pension section kept AVCs and Added years (07/08) ARCs (08/09) 433 117 224 121
members who had applied to investigate the possibility Death in Service n/a 80 n/a 73
of transferring their benefits fully informed of the Death of a Pensioner n/a 511 n/a 668
reasons for the delay.
Once the legislation was introduced, there was Benchmarking
also a subsequent delay in updating our software to
The Fund continues to participate in the CIPFA Cheshire
reflect the changes. This meant that administration £18.11 £18.92
benchmarking survey. In 2008/2009 we continued Pension Fund
staff were asked to perform time consuming and
to maintain a lower than average cost per member CIPFA Average £21.40 £21.77
complex calculations manually.
compared to funds of a similar size.
The following table shows the number of calculations
performed in some of the key areas this year
compared with the previous year.
14 Cheshire Pension Fund Annual Report 2008-09 Investment Report
Investment Strategy and Governance
As noted earlier in the Governance section of this
report, responsibility for the Fund’s investment
strategy for the financial year 2008-9 lay with the
County Finance Officer advised by the Pensions
Investment Panel (The Panel).
The Fund’s primary investment objective as set out
in the published Statement of Investment Principles
is to achieve a return from the Fund’s investments
sufficient to ensure it can meet its pension liabilities
whilst also managing investment risk.
The Fund targets a return of at least 6.1% per annum
to eliminate the funding deficit assessed at the 2007
valuation over a twenty year deficit recovery period
and to deliver a return from investments sufficient to
keep pace with the cost of future pension provision.
To assist delivery of these objectives the Panel
also advises on the Fund’s strategic asset allocation.
This sets out the amounts to be invested in a
diversified portfolio of assets.
The Fund invests in a wide range of asset classes
and regions across the world in the belief that a
diversified portfolio of different kinds of investments
will, on average, yield higher returns and pose a lower
risk than any individual investment found within the
Cheshire Pension Fund Annual Report 2008-09 Investment Report 15
Diversification also strives to smooth out risk Significant Changes in 2008-09 The successful transition involved trading £195m
in a portfolio so that the positive performance of of segregated bonds and £47.4m of foreign exchange,
The most significant event in 2008-09 was the
some investments will neutralise the negative with £23.4m of bonds crossed in-kind between
funding of the new fixed income mandates managed
performance of others. legacy and destination portfolios. It culminated with
by Henderson, Goldman Sachs and Baillie Gifford.
a complete disinvestment from Legal & General
Although appointed in spring 2008, funding of these
Asset Allocation fixed income funds, while achieving a reduced target
mandates was delayed until the summer of 2008.
allocation of 20% to Baillie Gifford, and 40% each
The Fund’s strategic asset allocation benchmark The impact of the credit crunch was still working its
to Henderson and GSAM.
as at 31 March 2009 and over 3 years is: way through markets and had prohibitively increased
the risks and costs of trading in bonds. The total implementation shortfall (or cost) of
% % % £811,486 (0.33% of destination asset value) compared
2007 2008 2009 The transition was successfully managed and
favourably with the pre trade estimate of £1,078,685.
UK equities 34.5 32.5 25.0
executed by the Fund’s transition manager –
(the now defunct) Lehman Brothers Europe. Other notable transactions in the year were a £50m
Overseas equities 34.5 34.5 37.0
The primary objective of the transition was to transfer from the UK equities component of the
Total Equities 69.0 67.0 62.0 redistribute the Fund’s fixed income investments Baillie Gifford portfolio to the Global unconstrained
Fixed Income 14.0 14.0 14.0 from the incumbent managers (Legal and General equity portfolio managed by the same manager.
and Bailie Gifford) to newly appointed Henderson The Fund also made an opportunistic additional
Property 9.0 9.0 9.0
Global Investors (Henderson) and Goldman Sachs investment of £50m to take advantage of distressed
Secured Loans 2.0 2.0 5.0 Asset Management (GSAM) and a new Baillie Gifford pricing in secured loans. This was funded from
Private Equity 1.0 3.0 5.0 Fixed Income Fund, whilst maintaining exposure passively managed UK equities managed by Legal
and minimising the cost of the transition to the Fund. and General and was invested through existing
Global Tactical Asset Allocation 3.0 3.0 3.0
Exposure was maintained throughout the entirety managers M&G and ECM, awarded an additional
Cash 2.0 2.0 2.0 of the transition by ensuring the phased purchase £35m and £15m respectively.
100.0 100.0 100.0
� and sale of segregated assets and pooled funds
Following a period of underperformance the Fund
was carefully managed on a coordinated basis.
reduced the Standard Life UK equities mandate by
broadly one third or £58m. This was transferred to UK
equities units passively managed by Legal and General.
16 Cheshire Pension Fund Annual Report 2008-09 Investment Report
The Fund’s commitments to existing and new private Manager Assets Date Mandate Investment Benchmark Performance
equity funds continued to be drawn down during the £000 appointed Style Target
year and as other asset prices fell, the Fund reached its Global Specific
Baillie Gifford 362,583 1993 Active +1.5%
long term allocation of 5% to this particular asset class.
Equities Passive/ Specific
Legal & General 304,619 1993 Track index
The overall impact and strategic objective of the and bonds Tracker Benchmark
changes over recent years has been to reduce GMO 226,026 2005 Active MSCI World Index +2.0%
the reliance on equities (particularly UK equities) UK FTSE All Share
for generating performance and to improve the Standard Life 102,177 2005 Active +2.0%
diversification of the underlying assets. Global FTSE
Baillie Gifford 113,689 2005 Active +3.0%
Equities All World
Fixed Merrill Lynch
Appointed investment managers Henderson 132,631 2008 Active +2.0%
Income Sterling Broad
The Fund has appointed thirteen external investment Goldman Sachs Fixed Merrill Lynch
129,199 2008 Active +2.0%
Asset Management Income Sterling Broad
managers to undertake the day to day management
Fixed Merrill Lynch
of the Fund’s assets. Each manager has a specific Baillie Gifford 56,196 2008 Active +2.0%
Income Sterling Broad
performance target against which their performance CAPS direct
Rockspring 147,364 1988 Property Active Outperform
is regularly monitored. The value of direct assets property
under management (excluding any accrued income Secured
M&G 57,693 2006 Active LIBOR +1.75%
entitlements) by each manager and their respective
BNY Mellon Asset
benchmarks are shown in the table adjacent: 39,936 2006 GTAA Active LIBOR +20%
ECM 53,084 2006 Active EURIBOR 3.5% - 4.5%
Adam Street Private Cash
63,721 2003 Active Cash
Partners Equity multiples
Pantheon 52,951 2003 Active Cash
Lexington 5,994 2005 Active Cash
Cheshire Pension Fund Annual Report 2008-09 Investment Report 17
The £1,847,929 of direct assets under management Top 10 holdings Property Holdings
as at 31st March were split across the various asset
The Fund had £729m invested directly in equities The Fund holds direct UK property assets totalling
classes as noted in the following charts:
around the world with a further £356m invested £123.1m in a diversified portfolio of UK retail,
GTAA 2.2% indirectly through pooled or collective investment industrial and office properties with a further £24.2m
Currency Forwards 0.1%
y Cash 1.0%
vehicles. The top 10 combined direct equity holdings invested in UK and European property unit trusts.
Secured Loans 6.0%
held by the investment managers are shown below:
Private Equity 6.7%
ty The largest direct holdings by market value are
British American Tobacco shown in the table below:
BHP Billiton £18.9m
35.0% £10.3m Property Sector £m
ixed HSBC Holdings Royal Dutch Shell Norfolk House, Guildford Retail 13.75m
Income £11m £18.1m
17.3% St Vincent Street, Glasgow Office 7.75m
UK Equities BP PLC
23.8% £11.1m Fort Wallington, Fareham Industrial 7.60m
BG Group PLC
Wal Mart Stores Inc. £15.8m St Catherine’s Trading Estate, Cardiff Industrial 7.55m
Johnson & Johnson Vodaphone Group MFI Botley Road, Oxford Retail 7.15m
The overseas equity component of the portfolio Tower House, Bristol Office 6.25m
is spread across the following regions:
18 Cheshire Pension Fund Annual Report 2008-09 Investment Report
Bell Street, Maidenhead Market Commentary
During the year work commenced on the £5.5m refurbishment of Thames House, Bell Street, Maidenhead an office In writing these notes it proved irresistible not to
building originally purchased by the Fund in 1997. The scheme involved demolishing the existing building, a tired revisit the previous years report to compare notes.
8,000sq ft 1970’s three storey office block located in a prime location in Maidenhead. This was replaced by a new Written in September 2008, the report contained the
larger 20,000 sq ft four storey modern, airy office building, with modern interior offices and service facilities. comment “the consensus view is that the full impact
of the credit crunch is still working its way through
Before After the financial markets”.
Whilst the prescience of the statement could be
applauded, it proved something of an understatement,
although few would have predicted that by the end
of the next month we would be witnessing a financial
meltdown. The list of casualties was remarkable -
the once mighty investment bank Lehman Brothers
had filed for bankruptcy and US mortgage giants
Fannie Mae and Freddie Mac and the international
insurer AIG were saved by the US Government. While
here in the UK, HBOS was absorbed by Lloyds TSB
and Bradford and Bingley was part nationalised.
These extraordinary events all occurring within
one month of writing the above.
Government intervention across the world to prop up
the ailing banking system was truly unprecedented
and many banks owed their survival to government
intervention leaving some effectively state owned.
Cheshire Pension Fund Annual Report 2008-09 Investment Report 19
As the year progressed, the crisis spread from the The worst of the financial crisis may have passed
financial sector to the real economy with every major but the damage inflicted on the real economy
developed economy entering recession and the world is now biting deeply. The rebuilding of financial
facing arguably its first ever truly global recession. structures and restoration of economic growth will
The response from the authorities was again on take time. The various economic stimulus packages
an unprecedented scale, including the reduction implemented around the world have resulted in
of short-term interest rates to close to zero, fiscal an explosive growth in public debt which has to
stimulus packages and, in the US and UK , the much be serviced and, ultimately, re-paid. This raises
vaunted (and misunderstood) quantitative easing. questions over the course of fiscal policy in the
years to come.
Against this gloomy economic background, equities
fell sharply. In the UK, the FTSE All Share index
returned -29.3%. In Sterling terms, the FTSE All
World (ex UK) fell by 19.6%. The best performing The Fund has adopted a tailored benchmark in line
sectors in a global context (relative to the ‘All World’ with its specific asset allocation rather than a peer
Index) were Health Care (+38.2%) and Technology group benchmark. The Panel regularly reviews the
(+16.1%): the worst performing were Financials performance of both the investment strategy and
(-25.5%) and Basic Materials (-16.0%). the contribution of the Fund’s investment managers.
Managers are required to submit reports on
Fixed interest government bonds performed well,
performance and investment activity to the
as investors sought the safety of this asset class.
Panel on a quarterly basis. The Fund also
UK fixed interest government bonds (gilts) returned
engages an independent performance measurer –
10.3% during the year. In contrast, corporate bonds
BNY Mellon Asset Servicing to independently
weakened (All Investment Grade issues returned
assess the rates of return received.
-13.5%), as values fell due to increased default risk.
The Fund’s overall performance in the year and
Major shifts in currency exchange rates during the
over the longer term is set out in the following
year reflected the economic dislocation and meltdown
charts and tables.
in the global financial sector. Sterling fell sharply
(-27.9% against the US$ and -13.9% against the Euro)
on concerns over the scale of public debt in the
years to come.
20 Cheshire Pension Fund Annual Report 2008-09 Investment Report
The table below shows the Fund’s returns in the different asset classes and also the benchmark
The majority of the Fund’s assets are managed
return for each for the 12 months ending 31 March 2009: actively by external investment managers in the
belief that active management will add more value
-26.0% (net of management fees) than index or benchmark
Baille Gifford Equity
-25.3% returns. Notwithstanding this expectation of
-12.4% outperformance from active management, the
Baille Gifford Fixed
4.3% Fund’s performance will inevitably be linked to the
performance of the global financial markets and the
Baille Gifford Global underlying assets that the Fund is actually invested
in. Most notably overseas equities, UK equities,
-46.2% bond markets and the UK property market which
account for 37%, 25%, 14% and 9% (85% in total)
-18.5% of the Fund’s assets respectively.
Unfortunately 2008-09 has been described as an
Goldman Sachs ‘annus horriblis’ for UK and overseas equity markets
as markets and investors reacted to the continued
3.7% ripples of the credit crunch, a lack of market liquidity,
4.3% a huge deleveraging process and then the spectre
-23.4% of and finally the realisation of a global recession.
Legal & General
-23.0% If the period 2003 through to 2007 marked a period
of “irrational exuberance” then fear returned to the
M&G markets with a vengeance in 2008-09 and investors
sold out of equities and other risky assets heavily,
Mellon most notably in the Autumn of 2008.
-50% -40% -30% -20% -10% 0% 10%
Cheshire Pension Fund Annual Report 2008-09 Investment Report 21
If 2008-09 will be remembered as a bad year for Against this backdrop, all the Fund’s assets returned Secured Loans experienced significant mark downs
markets in general it will also be remembered negative returns in the year and with the exception in prices as forced selling from amongst others
as a bad year for active management as managers of Rockspring the Fund’s property manager banks and hedge funds forced prices down and the
either failed to or could not react to, being caught and GMO’s global equity mandate, no manager quantitative modelling of the Global Tactical Asset
in the maelstrom of what may prove to be a once outperformed their specific benchmark. Allocation mandate suffered another difficult year
in a lifetime experience. as markets responded to sentiment and fear rather
Manager underperformance most notably an
than fundamental factors.
Note the Fixed Income mandates were funded overweight to the troubled UK banking sector was
in July 2008 and the figures below do not represent the primary driver of underperformance in the Fund’s In summary 2008-09 will be remembered as a
a full year. UK equities. Overseas equities were broadly in line painful year for markets and the Fund did not avoid
with benchmark returns with GMO’s outperformance this pain. A Pension Fund is however by its very
-21.5% being offset by underperformance elsewhere nature a long term investor and we can hopefully
-4.7% primarily from stock selection in US equities. take some positives that the fund continues to collect
in more cash than it pays out in pensions and as long
-20.7% Overseas As spreads on corporate bonds widened (prices
Equities term investors have not been forced to sell any of
-1% fell) the three fixed income managers’ overweight
it’s assets at distressed prices. At the time of writing
to corporate bonds hampered performance relative
UK and since the year end equity markets have rallied
Equities to the benchmark. An exposure to financial bonds
significantly as have other assets values as investor
in particular was detrimental to the fixed income
-1% appetite for risk has returned.
Fixed returns. Government bonds were a rare good news
story as investors fled to the perceived safety of
-25.1% government backed bonds.
-35% -30% -25% -20% -15% -10% -5%
25% 0% 5%
Relative to Benchmark
22 Cheshire Pension Fund Annual Report 2008-09 Investment Report
Nevertheless 2008-09 and to a lesser extent the negative returns of 2007-8 have impacted upon the Fund’s returns Corporate Governance and Shareholder Activism
over the mid term (3 years) but the Fund remains in positive territory albeit below benchmark over the longer term:
Corporate governance is about making sure that
companies’ operational processes and policies are
robust and responsible. Good governance ensures
that a company has clear direction, plans, structure
2.9% 1 year and resources, all of which are necessary for financial
1.1% success. The onus is on the companies to adopt an
accountable, transparent approach, demonstrating
principles of integrity in their business practice
8 The revised Myners principles recommend that
2.8% Funds adopt the key requirements of the Institutional
3.1% Shareholders Committees statement of principles
on the responsibilities of institutional shareholders
2.8% This Statement sets out best practice for institutional
3.9% shareholders and/or their agents in relation to their
2.4% responsibilities in respect of investee companies,
in that they will:
• Set out their policy on how they will discharge their
r 1.7% responsibilities - clarifying the priorities attached
Benchmark 2.0% to particular issues and when they will take action;
I fl 1.8% • Monitor the performance of, and establish,
e 3.8% where necessary, a regular dialogue with
• Intervene where necessary;
And finally as we approach another valuation year, the Panel and its investment consultant continue to • Evaluate the impact of their engagement; and
keep the performance of its assets, investment managers and its investment strategy under constant review.
-25% -20% -15% -10% -5% 0% 5% • Report back to clients/beneficial owners.
Cheshire Pension Fund Annual Report 2008-09 Investment Report 23
The Council’s corporate governance arrangements The table below summaries the voting activity
as published in the Statement of Investment for the fund over the 12 months to 31 March 2009:
Principles do incorporate these principles.
The Fund’s overall policy is to obtain the best Number of UK AGMS 153
possible return using the full range of investments AGMS in Total 234
authorised under the Local Government Pension
Voted for in respect of all resolutions 168
Vote against or abstain 66
The Fund recognises that social, environmental
and external considerations can affect financial
return. The Fund’s managers have been requested The table below highlights those resolutions that
to give due consideration to these factors, were voted against or abstained and the under which
particularly in the areas of business sustainability broad governance categories the resolutions fall:
and reputational risk when selecting, retaining
and realising individual investments. Service
Remuneration Executive Contract
Managers of the portfolios containing listed UK Policy and Incentive Duration and Re-election
and Overseas Equities are required to vote at all Report Schemes Migration of Directors Other
meetings where the Fund has a voting interest. Abstained 5 5 1 1
Wherever practicable, votes must be cast in
Voted Against 14 29 2 13 10
accordance with industry best practice as set out
in the Combined Code of Corporate Governance.
The managers are required to specifically notify any
voting exceptions. All abstentions must be specifically
reported and justified. The Fund’s non-equity
Managers are required to take account of the Fund’s
views as far as possible. The managers’ quarterly
reports include a specific briefing on corporate
governance and all votes cast on the Fund’s behalf.
Independent Auditor’s report on Cheshire
Pension Fund to the members of Cheshire West
and Chester Council
I have audited the pension fund accounts for
the year ended 31 March 2009. The pension fund
accounts comprise the Fund Account, the Net Assets
Statement and the related notes. The pension fund
accounts have been prepared under the accounting
policies set out in the Statement of Accounting
This report is made solely to the members of
Cheshire West and Chester Council in accordance
with Part II of the Audit Commission Act 1998 and
for no other purpose, as set out in paragraph 49 of
the Statement of Responsibilities of Auditors and of
Audited Bodies prepared by the Audit Commission.
Cheshire Pension Fund Annual Report 2008-09 Auditor’s Report 25
Respective responsibilities of the I report to you my opinion as to whether the pension I am not required to consider, nor have I considered,
Director of Resources and Auditor fund accounts present fairly, in accordance with whether the governance statement covers all risks
relevant legal and regulatory requirements and the and controls. Neither am I required to form an
The Director of Resources is responsible for
Code of Practice on Local Authority Accounting in opinion on the effectiveness of the Authority’s
preparing the pension fund accounts, in accordance
the United Kingdom 2008, the financial transactions corporate governance procedures or its risk
with relevant legal and regulatory requirements and
of the pension fund during the year and the amount and control procedures.
the Code of Practice on Local Authority Accounting
and disposition of the fund’s assets and liabilities,
in the United Kingdom 2008. In preparing this I read other information published with the pension
other than liabilities to pay pensions and other
pension fund accounts, the Director of Resources fund accounts and related notes and consider
benefits after the end of the scheme year. I also
is responsible for: whether it is consistent with the audited pension
report to you whether, in my opinion, the information
fund accounts. This other information comprises
• selecting suitable accounting policies which comprises the commentary on the financial
the remaining elements of the Pension Fund Annual
and then applying them consistently; performance included within the Pension Fund
Report comprising the Foreword, Management
Annual Report, is consistent with the pension fund
• making judgments and estimating Structure, Governance Report, Administration Report,
accounts. That information comprises the Financial
that were reasonable and prudent; Actuarial Statement and Participating Employers.
Statements and Notes to the Accounts.
• keeping proper accounting records I consider the implications for my report if I become
which were up to date; Preview whether the governance compliance aware of any apparent misstatements or material
statement published in the Pension Fund Annual inconsistencies with the pension fund accounts and
• taking reasonable steps for the prevention Report reflects compliance with the requirements related notes. My responsibilities do not extend to
and detection of fraud and other irregularities. of Regulation 34(1)(e) of the Local Government any other information.
My responsibility is to audit the pension fund accounts Pension Scheme (Administration) Regulations 2008
and related notes in accordance with relevant legal and related guidance. I report if it does not meet
and regulatory requirements and International the requirements specified by the Department
Standards on Auditing (UK and Ireland). of Communities and Local Government or if the
statement is misleading or inconsistent with other
information I am aware of from my audit of the
26 Cheshire Pension Fund Annual Report 2008-09 Auditor’s Report
Basis of Audit opinion
I conducted my audit in accordance with the Audit
Commission Act 1998, the Code of Audit Practice
issued by the Audit Commission and International
Standards on Auditing (UK and Ireland) issued by
the Auditing Practices Board. An audit includes
examination, on a test basis, of evidence relevant
to the amounts and disclosures in the pension
fund accounts and related notes. It also includes
an assessment of the significant estimates and
judgments made by the Authority in the preparation
of the pension fund accounts and related notes,
and of whether the accounting policies are
appropriate to the Authority’s circumstances,
consistently applied and adequately disclosed.
I planned and performed my audit so as to
obtain all the information and explanations which
I considered necessary in order to provide me with
sufficient evidence to give reasonable assurance
that the pension fund accounts and related notes
are free from material misstatement, whether
caused by fraud or other irregularity or error.
In forming my opinion I also evaluated the overall
adequacy of the presentation of information in
the pension fund accounts and related notes.
Cheshire Pension Fund Annual Report 2008-09 Auditor’s Report 27
In my opinion the pension fund accounts and
related notes present fairly, in accordance with
the Code of Practice on Local Authority Accounting
in the United Kingdom 2008, the financial transactions
of the Pension Fund during the year ended 31 March
2009, and the amount and disposition of the fund’s
assets and liabilities as at 31 March 2009, other than
liabilities to pay pensions and other benefits after
the end of the scheme year.
Officer of the Audit Commission
The Heath Technical & Business Park,
The Heath, Runcorn, Cheshire, WA7 4QF
30 September 2009
Introduction Matters relating to benefit administration are
largely governed by the Local Government Pension
As at 31 March 2009 Cheshire County Council
Scheme regulations. In relation to investments the
was the statutory Administering Authority
Council sets the overall investment strategy for the
for the Cheshire Pension Fund (the Fund).
Fund which takes into account the Fund’s pension
Following Local Government Reorganisation
liabilities and the prospects for future investment
this responsibility transferred to Cheshire West
returns. To manage the Fund’s assets in accordance
and Chester Council on 1 April 2009.
with the agreed investment strategy, the Council has
The Council administers the Fund for its own appointed thirteen external investment managers
employees, for Warrington and Halton Unitary who each have specific responsibility for part of the
Authorities, Cheshire’s two new Unitary Authorities, Fund’s investment portfolio.
the six outgoing Cheshire District Councils and 88
The Council uses the services of BNY Mellon Asset
other approved bodies. The Fund excludes provision
Servicing to independently monitor the performance
for teachers, fire fighters and police officers for whom
of the investment strategy and the contributions
separate arrangements exist. A full list of the employers
of individual managers. Performance is monitored
with active members participating in the Fund is shown
against the Fund’s tailored asset allocation
at the end of this Annual Report.
benchmark rather than to a peer group benchmark.
Responsibility for the Fund in 2008-09 lay with the
BNY Mellon Asset Servicing’s report for the year
full Council of Cheshire County Council. Under this,
ended 31 March 2009 shows that the Fund
the Director of Policy & Resources had lead officer
achieved a return from its investments of -21.5%
responsibility for the Fund. Day to day management
(-3.5% in 2007-08) compared with the Fund’s tailored
of the Fund’s affairs was delegated to the County
benchmark return of -16.8% (-3.3% in 2007-08).
Finance Officer advised, with regard to investment
matters, by the Pensions Investment Panel and The Fund’s target return is to outperform its
external advice from Hymans Robertson. benchmark by +0.75% over a rolling three year period.
For the three years ended 31 March 2009 the Fund
achieved a return of -6.7% (+9.2% 2007-08) against
the Fund’s benchmark return of -4.8% (+8.8% 2007-08)
Cheshire Pension Fund Annual Report 2008-09 Financial Statements 29
Fund Account 2008-09
Net Assets Statement
Notes £000 £000 Notes £000 £000
Contributions and Benefits Fixed Interest Securities 10 689 53,010
Contributions Receivable Equities 11 729,281 1,066,343
From Employers 1 110,918 107,264 Index Linked Securities - -
From Employees 36,369 32,658 Pooled Investment Vehicles 12,18 696,989 735,134
Total Contributions Receivable 1, 2 147,287 139,922 Derivative Contracts 13 1,903 -
Transfers in from Other Schemes 9,489 14,290 Direct Property 14 123,160 184,150
Private Equity 29 122,634 84,033
Benefits Payable Global Tactical Asset Allocation 16 39,936 50,444
Pensions (84,865) (78,989) Secured Loans 17 110,352 68,650
Lump Sums (18,518) (21,142) 1,824,944 2,241,764
Death Benefits (2,406) (1,310) Cash 19 18,626 51,407
Total Benefits Payable 3 (105,789) (101,441) 1,843,570 2,293,171
Payments to and on account of Leavers Outstanding dividend entitlements
Refund of Contributions (41) (97) & recoverable withholding tax
Transfers to Other Schemes 4 (10,082) (10,132) 1,847,929 2,302,330
(10,123) (10,229) Investment Liabilities
Administration Expenses 5 (1,835) (1,947) Derivative Contracts 13 (2,033) -
Net Additions 39,029 40,595 Total Net Investments 1,845,896 2,302,330
Returns on Investments Cash at Bank 3,730 20,491
Investment Income 6 49,708 55,707 Debtors 20 11,979 12,250
Change in Market Value 7 (555,636) (134,639) Payments In Advance - 1,459
Taxation 8 (609) (714)
Investment Management Expenses (5,553) (7,781)
Investment Management Fees & Expenses (944) (2,012)
Net Returns On Investments (512,090) (87,427)
Other Creditors 21 (3,632) (3,721)
Receipts In Advance (1,759) (2,466)
Net Additions from Dealings with Members 39,029 40,595
Net Increase/ (Decrease) in the Fund During the Year (473,061) (46,832) Net Current Assets 9,374 26,001
Opening Net Assets of the Scheme 2,328,331 2,375,163 Add Total Net Investments 1,845,896 2,302,330
Closing Net Assets of the Scheme 1,855,270 2,328,331 Total Net Assets 1,855,270 2,328,331
30 Cheshire Pension Fund Annual Report 2008-09 Financial Statements
Statement of Accounting Policies Investments Where this is not the Fund’s balance sheet date,
this valuation has been adjusted having due
The financial statements have been prepared in Investments are shown in the accounts at market
regard to latest dealings, asset values and other
accordance with the accounting recommendations value, which has been determined as follows: -
appropriate financial information.
of the Pension Research Accountants Group (PRAG)
• Listed securities are shown by reference to bid • Fixed Interest investments have been valued at
‘Financial Reports of Pension Schemes –
market prices at close of business on 31 March 2009. the market value as at 31 March 2009 which does
a Statement of Recommended Practice May 2007’.
However disclosures have been limited to those • Pooled investment vehicles are stated at the not include any accrued interest. The interest due
required by the Code of Practice on Local Authority bid point of the latest prices quoted by their but not received is shown in the accounts within
Accounting in the United Kingdom: a Statement respective managers at 31 March 2009. accrued interest income.
of Recommended Practice. Where such information is not available the • Future contracts have been valued at the exchange
assets are priced at the single price provided. price for closing out the contract at the year end
The financial statements summarise the transactions
• Investments held in foreign currencies are shown date and this represents the unrealised profit or
of the Scheme and deal with net assets at the
at market value translated into the equivalent loss of the contract. Amounts due from the broker
disposal of the Fund. They do not take account of
sterling rate prevailing at 31 March 2009. represent the amounts outstanding in respect of
obligations to pay pensions and benefits which fall
the initial margin and any variation margin which
due after the end of the Scheme year. The actuarial • Properties are included on the basis of their
is due to or from the broker.
position of the Scheme, which does take account of open market value. The property portfolio was
such obligations, is dealt with in the statement in independently valued by Colliers CRE, Chartered • Forward foreign exchange contracts are stated at
Note 32 on page 41 and these financial statements Surveyors at 31 March 2009 in accordance with fair value which is determined as the gain or loss
should be read in conjunction with that note. the Royal Institution of Chartered Surveyors’ that would arise if the outstanding contract was
Valuation Standards. matched at year end with an equal and opposite
Basis of Preparation contract.
• Indirect private equity investments are interests
Except where otherwise stated, the accounts have in limited partnerships which are valued based on • The Fund’s investments in Global Tactical
been prepared on an accruals basis, that is, income the Fund’s share of the net assets of the limited Allocation and Secured Loans are valued at their
and expenditure is recognised as it is earned or partnership according to the latest financial Net Asset Value by the respective managers’
incurred not as it is received or paid. statements published by the respective managers in administrators as at 31 March 2009.
accordance with FAS 157: Fair Value Measurements.
Cheshire Pension Fund Annual Report 2008-09 Financial Statements 31
Contributions Investment Income Investment Management Expenses
Contributions represent amounts receivable Income from fixed interest and index linked securities Each individual manager receives a fee based
from employers in respect of their own and their and other interest receivable is accounted for on an on the market value of the assets they manage.
pensionable employees’ contributions. Employers’ accruals basis. Income from all equities is accounted Certain managers also receive a performance related
contributions are determined by the Scheme Actuary for when the stocks are quoted ex-dividend. Rental fee (over and above a base fee) for achieving agreed
at each triennial valuation of the Fund’s assets and income is accounted for on an accruals basis with levels of out performance. Where the Fund pays the
liabilities. Employee contribution rates are set in reference to the periods to which the rent relates. manager fees directly from the Fund’s own resources
the Local Government Pension Scheme (Benefits, such fees are shown as Investment Management
Membership and Contributions) Regulations 2007. Foreign Investment Income Expenses in the fund account and are accounted
Contributions are recorded on an accruals basis in for on an accruals basis.
relation to when they were deducted from earnings. Foreign income has been translated into sterling
at the date of the transaction. Income from overseas Where, as part of the Investment Management
investments is recorded net of any withholding tax Agreement the manager deducts their fee directly
Benefits and Refunds of Contribution
where this cannot be recovered. from funds under management by netting off
Benefits payable, lump sums and refunds of their fee from the Gross Asset Value, such fees
contributions have been brought into the accounts are accounted for on an accruals basis and are
on an accruals basis with reference to the date reflected in a reduced closing Net Asset Value.
payment is due as governed by the Local Government
Pension Scheme (Administration) Regulations 2008.
Transfer values are sums paid between
pension schemes and relate to the value
of previous pension scheme membership.
Transfers into and out of the fund are
recognised on a cash received or paid basis.
Notes to the Accounts
1 Employer Contributions 2007-08 Augmentation Contributions relate to Employers
Receivable 2008-09 Restated meeting the capitalised costs of discretionary early
£000 £000 retirements. The Fund recharges the Employers for
Normal Contributions 81,707 65,953 such costs and the income received is made up of
*Deficit Funding 24,512 35,514 both one-off lump sum payments and instalments
Augmentation Contributions 4,699 5,797 where the Employer has chosen to spread the cost
Total 110,918 107,264 in accordance with the Fund’s agreed policy.
For those Employers who were affected by Local
* Employer Normal Contributions may include
Government Reorganisation in Cheshire and who
an element towards reducing any deficit in the
incurred additional costs as a result of discretionary
scheme’s funding position. At the latest triennial
early retirements on 31 March 2009, the agreed policy
valuation (31 March 2007) the Actuary calculated
is that the two new unitary authorities will meet the
a common employer contribution rate of 19.5%,
costs in five annual instalments starting in 2009-10.
of which 4.5% targeted recovering the funding deficit
The total capitalised cost of these early retirements
with 15% towards future service costs. It is estimated
is £13.760m. None of this income has been received
that employers contributed a notional £24.5m
or recognised in 2008-09.
in 2008-09 towards deficit funding.
2 Analysis of Contributions Receivable 2008-09 2007-08
Employers Employees Employers Employees
£000 £000 £000 £000
Cheshire County Council 43,678 14,545 42,929 13,264
Scheme Employers 55,773 17,875 53,247 15,903
Admitted Bodies 11,467 3,949 11,088 3,491
Total 110,918 36,369 107,264 32,658
Cheshire Pension Fund Annual Report 2008-09 Notes to the Accounts 33
3 Benefits Payable 2008-09 2007-08 5 Administration Expenses 6 Investment Income 2008-09 2007-08
£000 £000 £000 £000
The costs incurred by the County Council in
Cheshire County Council 38,211 36,207 Income from Fixed
administering the Fund, as declared annually 6,448 1,504
Scheme Employers 58,016 55,954 Interest Securities
to Communities and Local Government totalled
Admitted Bodies 9,562 9,280 £1.835m for the year ended 31 March 2009. Dividends from Equities 30,785 36,064
Total 105,789 101,441 A breakdown of the significant items is shown below. Income from Index Linked
2008-09 2007-08 Income from Pooled
£000 Restated Investment Vehicles:
4 Transfers to Other Schemes £000
Property 543 1,141
Direct Staffing 1,114 1,097
The Transfers to Other Schemes figure represents Other 92 3,039
the cash payments from the Fund in relation to IT 175 297
Net Rents from Properties 10,427 11,559
individual scheme members’ transfers of benefits Senior Management Support 103 91
Interest from Cash
in line with the Fund’s accounting policy. Legal Fees 44 43 604 2,153
External Audit Fees 55 37 Other 656 119
Actuarial Fees 75 204 Total 49,708 55,707
Printing & Postage 49 23
Other Supplies and Services 221 275
Income (1) (120)
Total 1,835 1,947
34 Cheshire Pension Fund Annual Report 2008-09 Notes to the Accounts
Transaction costs are included in the cost of
7 Change In Market Value Purchases Sales
Restated at cost & proceeds & Change purchases and sale proceeds. Transaction costs
Value at derivative derivative in Market Value at include costs charged directly to the scheme such
31.03.2008 payments receipts Value 31.03.2009 as fees, commissions, stamp duty and other fees
£000 £000 £000 £000 £000
and amounted to £1.791m for the year. In addition
Fixed Interest Securities 53,010 151,207 200,889 (2,639) 689
to the transaction costs disclosed above, indirect
Equities 1,066,343 488,026 499,971 (325,117) 729,281 costs are incurred through the bid-offer spread
Index Linked - 69,562 69,625 63 - on investments within pooled investment vehicles.
Pooled Investment Vehicles 735,134 430,641 362,200 (106,586) 696,989 The amount of indirect costs is not separately
Derivative Contracts - 56,406 58,841 4,338 1,903 provided to the scheme. It is impracticable to obtain
Direct Property 184,150 4,520 5,275 (60,235) 123,160 or estimate the transaction costs incurred in 2007-08.
Private Equity 84,033 39,832 6,175 4,944 122,634
Global Tactical Asset Allocation 50,444 14,000 - (24,508) 39,936
Secured Loans 68,650 108,598 25,030 (41,866) 110,352 The Fund is exempt from UK income tax on interest
2,241,764 1,362,792 1,228,006 (551,606) 1,824,944 and from capital gains tax on the profits resulting
from the sale of investments. The Fund is exempt
Cash 51,407 90,832 119,583 (4,030) 18,626
from United States withholding tax on dividends and
2,293,171 1,453,624 1,347,589 (555,636) 1,843,570
can recover all or part of the withholding tax deducted
Outstanding dividend entitlements, accrued in some other countries. The amount of withholding
interest and recoverable withholding tax
tax deducted from overseas dividends which the Fund
is unable to reclaim amounts to £609K and is shown
as a tax charge.
The change in market value of investments during the year comprises all increases and decreases in
the market value of investments held at any time during the year, including profits and losses realised As Cheshire County Council was the administering
on sales of investments during the year. authority for the Fund, VAT input tax was recoverable
on all Fund activities including expenditure on
investment and property expenses.
Cheshire Pension Fund Annual Report 2008-09 Notes to the Accounts 35
9 Prior Year Adjustments
10 Fixed Interest 2008-09 2007-08 12 Managed Funds, 2008-09 2007-08
Securities £000 £000 Open Ended Investment £000 Restated
The Fund has adopted the revised Statement of
UK Non-Government Quoted 689 7,051 Companies & Unit Trusts £000
Recommended Practice (SORP) May 2007. As a
result investments previously valued at mid prices Overseas Government UK Equity Listed 147,828 173,966
are now valued at bid or offer prices for assets and Quoted UK Equity Unlisted 61 57
liabilities respectively where there is a bid/offer Overseas Non-Government UK Government
- 16,583 - 34,037
Quoted Fixed Interest
spread. This is a change in accounting policy but the
difference in valuation is considered to be immaterial Total 689 53,010 UK Non-Government
to the financial statements and therefore comparative
figures for 2007-08 have not been restated. As a result UK Index Linked - 62,212
the comparative figures for investments are reported UK Property 3,555 7,421
11 Equities 2008-09 2007-08
on a mid price basis and the adjustment in valuation £000 £000 Fixed Income – Multi Strategy 318,026 -
from mid to bid/offer prices is included in current Overseas Equity Listed 207,998 281,429
UK Quoted 290,420 570,850
year ‘Change in Market Value’. Overseas Property 19,521 19,285
UK Index Future Contracts - (5,823)
Fees paid to the Fund’s actuary (Hymans Robertson) Overseas Quoted 438,861 495,424 Total 696,989 735,134
are now included within Administration Expenses Overseas Index Future
rather than Investment Management Expenses. Contracts
Figures for 2007-08 have been restated accordingly, Total 729,281 1,066,343 13. Derivative Contracts 2008-09
resulting in a movement of £204,000 from Investment £000
Management Expenses to Administration Expenses. Equity Futures Contracts 211
36 Cheshire Pension Fund Annual Report 2008-09 Notes to the Accounts
Equity Futures Contracts The Fund uses exchange traded index futures
Economic contracts for hedging purposes, direct investing
Exposure Value Asset Liability
£’000 £’000 £’000 as a means of creating equity exposure and for
managing risk by implementing shifts in investment
Country Exchange Expiration
exposure. Forward currency contracts are used
UK FTSE Less than 1 year 2,681 71
to hedge the risks associated with the foreign
France CAC Less than 1 year 260 5 currencies represented by the securities held, or
Germany DAX Less than 1 year 2,280 29 to adjust the foreign currency exposure of the Fund.
Spain IBEX Less than 1 year (578) 17
As a result of the Fund adopting the revised SORP,
USA S&P Less than 1 year (5,018) 258
derivatives are now valued at fair value, which is the
Japan TOPIX Less than 1 year 5,159 393 bid price for asset positions and offer price for liability
China HANG SENG Less than 1 year (1,709) 40 positions. This is a change in accounting policy but
Australia SPI Less than 1 year (1,080) 52 as it is impracticable to obtain comparative figures
1,995 538 327 for 2007-08, and the difference is considered to be
immaterial to the financial statements, the 2007-08
figures have not been restated. Comparative figures
therefore remain at their economic exposure value.
Forward Foreign Exchange Contracts
Number of Contracts Trade Type Expiration Asset £’000 Liability £’000 14 Property 2008-09 2007-08
31 Over the counter Less than 1 year 1,365 1,706
Freehold 101,430 147,925
Heritable 12,745 18,900
Leasehold 8,985 17,325
Total 123,160 184,150
Cheshire Pension Fund Annual Report 2008-09 Notes to the Accounts 37
16 � Global Tactical Asset Allocation 18 � Fixed Income Multi Strategy
15 � Investment by 2008-09
Fund Manager £000 £000
The Fund has invested in a Global Tactical Asset The Fund has invested in three pooled fixed
Baillie Gifford & Co 532,468 803,642 Allocation vehicle managed by BNY Mellon Asset income investment vehicles managed separately
Legal & General 304,619 531,214 Management. This strategy attempts to add value by Goldman Sachs, Henderson and Baillie Gifford.
Goldman Sachs 129,199 - through asset allocation between local equity and The underlying assets of these pooled vehicles are
Henderson 132,631 - bond markets, country selection across individual invested by the managers in diversified portfolios
GMO 226,026 277,163 national equity and bond markets and also through of a wide range of fixed income assets including
active currency management. The strategies are Government Bonds (UK and Overseas), Corporate
Standard Life 102,177 256,986
implemented through the use of derivatives, such Bonds, High Yield Bonds, Emerging Market Bonds,
Rockspring 147,364 211,647
as (but not restricted to) equity and bond futures, Asset and Mortgage Backed Securities, Secured
BNY Mellon Asset options and currency forward contracts. Loans and currency. The managers may use
derivate instruments to manage risk and to
European Credit 17 � Secured Loans
53,084 33,092 express their investment convictions.
M&G 57,693 35,558 The Fund has invested in two Secured Loan
19 Cash 2008-09 2007-08
Adams Street Partners 63,721 47,357 vehicles managed by European Credit Management £000 £000
Pantheon Ventures 52,951 32,704 and M&G. Secured loans are bonds, or debt, issued Cash Deposits 12,594 21,664
by companies, typically to finance internal growth,
Lexington Capital Partners 5,994 4,042 Cash Instruments 8,027 29,814
acquisitions, mergers and leveraged buy-outs.
Other 66 18,481 Cash Backing Futures (1,995) (71)
They are senior loans in that they have a priority
Total � 1,847,929 2,302,330
claim over specific assets of the company if it fails 18,626 51,407
to meet its debt obligations.
38 Cheshire Pension Fund Annual Report 2008-09 Notes to the Accounts
20 Debtors 2008-09 2007-08 A full copy of the SIP can be obtained from the Fund members’ accrued benefits are guaranteed
£000 £000 Pensions Section, Cheshire West and Chester by statute. Members’ contributions are fixed in the
Rental Income 862 965 Council, County Hall, Chester, CH1 1SG Regulations at a level which covers only part of the
Due from Cheshire County or from the Fund’s website at: cost of accruing benefits. Employers pay the balance
5,215 4,719 www.cheshirepensionfund.org of the cost of delivering the benefits to members
Due from Employers 6,041 6,545 (net of returns from the Fund’s investments).
23 Funding Strategy Statement The FSS focuses on the pace at which these liabilities
Other Debtors 46 123
are funded and, insofar as is practical, the measures
Less Provision for Doubtful Debt (185) (102) Under the LGPS (Administration) Regulations 2008
to ensure that employers pay for their own liabilities.
11,979 12,250 administering authorities are required to prepare a
Funding Strategy Statement (FSS).The key requirements The Funding Strategy Statement for the Cheshire
The debtors figure above does not include future
relating to the FSS in the regulations are that; Pension Fund can be obtained from the Pensions
payments due from employers who are making
special additional payments in respect of early Section, Cheshire West and Chester Council,
• After consultation with all relevant interested parties
retirement costs over an agreed number of years. County Hall, Chester, CH1 1SG or from the
involved with the Fund, the administering authority
Fund’s website at: www.cheshirepensionfund.org
will prepare and publish their funding strategy.
21. Creditors 2008-09 2007-08
£000 £000 • In preparing the FSS, the administering 24 Trustee Fees
authority must have regard to:
Pension Benefits Payable 494 554 As the Cheshire Pension Fund forms part of the LGPS
Due to Cheshire County • FSS guidance produced by CIPFA it does not strictly have trustees. The members of the
• Its Statement of Investment Principles published Pensions Investment Panel do not receive any fees in
Other Creditors 1,360 1,078
under Regulation 9A of the Local Government relation to their specific responsibilities as members
Pension Scheme (Management and Investment of the Panel.
of Funds) Regulations 1998 (as amended).
22 Statement of Investment Principles Since January 2004 elected members who are offered
• The FSS must be revised and published whenever membership of the Scheme under their council’s
The Fund’s Statement of Investment Principles there is a material change in either the policy on scheme of allowances have been eligible to join the
(SIP) sets out the Fund’s investment objectives the matters set out in the FSS or the Statement Scheme. As at 31 March 2009 six members of the
and investment management arrangements. of Investment Principles. Pensions Investment Panel had taken this option
• The Fund’s actuary must have regard to the and were members of the Scheme.
FSS as part of the fund valuation process.
Cheshire Pension Fund Annual Report 2008-09 Notes to the Accounts 39
25 � Related Party Transactions 26 � Stock Lending 29 � Contingent Liabilities and
The relationship between the Administering Authority The Cheshire Pension Fund policy is not to
and the Fund is by its very nature a close one. undertake stock lending of Pension Fund assets. The Fund has contractual commitments to
The majority of the Fund’s cash is invested with the the value of £336.4m in private equity funds.
Fund’s investment managers or directly with external 27 � Leverage At 31 March the Fund had actually invested
financial institutions. The Fund did however hold an £158.9m and therefore had an outstanding
Some of the Fund’s investments, including
amount of cash with Cheshire County Council in order commitment of £177.5m. As these funds are
Private Equity and GTAA use leverage as a tool
to meet its short term cash flow needs e.g. payment denominated in US Dollars and Euros the
to achieve higher returns. Leverage can be described
of pension benefits. In 2008-09 Cheshire County commitment in Sterling is subject to change
as exposure to changes in asset values at a ratio of
Council paid the Fund £225K for interest accrued due to currency fluctuations.
greater than 1:1 in reference to the amount invested.
on these balances, with the average balance through
Leverage magnifies both favourable and unfavourable With effect from 1 April 2005 the Magistrates
the year standing at £3.540m.
movements in asset values. Courts service became part of the Civil Service.
At the year end, a balance of £6.455m was due to Terms have been agreed for the transfer of liabilities
the Fund from Cheshire County Council, primarily 28 � Illiquidity of Assets from all of the Local Government Pension Schemes
relating to contributions which were paid in April (LGPS) to the Principal Civil Service Pension Scheme
Some of the Fund’s assets can be relatively illiquid.
but became due in March and a balance of £1.778m (PCSPS). Each LGPS Fund’s actuary will determine
Illiquidity in this context means the Fund may not
was owing to Cheshire County Council for Fund the value of pensioner and deferred liabilities
always be able to sell these assets quickly and at the
transactions processed through the Administering remaining with the LGPS and will retain enough
desired price. Either because there is no secondary
Authority’s accounts payable and receivable systems. assets to meet these liabilities. The remaining (if any)
market for them or a lack of investors wishing to
share of Fund assets relating to Magistrates Courts
The Fund has not made any employer related purchase them. As an investor with a long investment
will then be transferred over to the PCSPS.
investment at any time during the period. horizon the Fund can invest in such assets with the
expectation of being rewarded with excess returns
(a liquidity premium).
40 Cheshire Pension Fund Annual Report 2008-09 Notes to the Accounts
30 Additional Voluntary Contributions (AVCs) 31 Post Balance Sheet Events
The AVC providers to the members of the Fund are Clerical Medical, Standard Life and Equitable Life. A review has been undertaken to identify any
The AVCs are invested separately from the Fund’s main assets and used to acquire additional pension benefits. material post balance sheet events which would
Members participating in these AVC arrangements each receive an annual statement confirming the amounts either require restatement of the 2008-09 accounts
held in their account and the movements during the year. or a note to the accounts to highlight any non
adjusting events. This review covers events up to
A summary of the information provided by Clerical Medical, Standard Life and Equitable Life for the year
18 September 2009 and two non-adjusted events
to 31 March 2009 is shown below. (This summary has not been subject to audit and the Fund relies on the
have been identified:
individual contributors to check deductions made on their behalf are accurately reflected in the statements
provided by the AVC providers). Firstly, as a result of Local Government
Clerical Medical Standard Life Equitable Life Total Reorganisation on 1 April 2009 the existing local
£000 £000 £000 £000 authorities in Cheshire were replaced by two new
Contributions received in year 293 350 11 654 unitary authorities: Cheshire West and Chester
Council (covering the districts of Chester, Ellesmere
Market Value at 31 Mar 2008 1,651 2,027 1,155 4,833
Port & Neston and Vale Royal) and Cheshire East
Market Value at 31 Mar 2009 1,434 1,660 943 4,037
Council (covering the districts of Crewe & Nantwich,
Congleton and Macclesfield).
The seven demising local authorities were all
Major Scheme Employers within the Cheshire
Pension Fund in 2008-09. As part of the LGR
transition they undertook a programme of voluntary
redundancies, resulting in a number of employees
taking early retirement with their last day of work
being 31 March 2009.
Cheshire Pension Fund Annual Report 2008-09 Notes to the Accounts 41
In accordance with the LGPS (Administration) 32 Actuarial Valuation
Regulations 2008 & the SORP the payment of
The accounts summarise the transactions and
the lump sum retirement benefits to these retirees
net assets of the Fund; they do not take account of
has been accounted for on 1 April 2009 and has
future liabilities to pay pensions and other benefits.
not been included in the 2008-09 accounts.
The Actuary carries out an actuarial valuation of
The monetary total of lump sums paid out in
the Fund’s assets and liabilities every three years.
April which related to these retirees is £13.988m.
The rate of employers’ contributions payable in the year
This amount will be included within Lump Sums
to March 2009 was determined at the 2007 valuation
in the Fund Account for 2009-10. The actuarial
of the Fund. The Actuary set the common rate of
cost associated with these retirements is £13.760m
employers’ contribution phased from 1 April 2008
and the two new unitary authorities will reimburse
to 31 March 2011 at 19.5% of pensionable pay.
the Pension Fund for these costs in five annual
This was expected to be the rate sufficient over
instalments starting in 2009-10. The contributions
a period of 20 years to meet 100% of existing and
received will be included within Employer
prospective liabilities, including pension increases.
Contributions in the Fund Account.
At the valuation date the valuation showed that
The second non-adjusting event is that the valuation the value of the Fund’s assets represented 85%
of the Pension Fund’s Investments, which at the time of the Fund’s accrued liabilities.
these Accounts went to print had increased from
Fund assets were valued under the projected unit
£1,846m to £2,057m.
method and the Actuary made the following assumptions:
• nominal investment returns on assets of
6.1% per annum
• nominal rate of future earnings increases
of 4.7% (with assumptions about pay awards
and promotions but excluding increments); and
• nominal rate of pension increases at 3.2% per annum
At the time of the actuarial valuation the Fund’s
assets were valued at £2,385m.
CHESHIRE PENSION FUND Cheshire Pension Fund (“the Fund”) 2008/09 Summary of Method and Assumptions Used
HYMANS ROBERTSON LLP Full details of the method and assumptions are
As required by regulations, an actuarial valuation described in the valuation report dated 31 March 2008.
of the Fund’s assets and liabilities was carried out
My opinion on the security of the prospective rights
as at 31 March 2007.
is based on the projected unit valuation method.
This assesses the cost of benefits accruing to existing
Security of Prospective Rights
members during the year following the valuation,
In my opinion, the resources of the Scheme are likely allowing for future salary increases. The resulting
in the normal course of events to meet the liabilities contribution rate is adjusted to allow for any
of the Fund, as required by the Regulations. In giving difference in the value of accrued liabilities (allowing
this opinion I have assumed that the following for future salary increases) and the market value of
amounts will be paid to the Fund: assets. For employers which are no longer admitting
new entrants to the Fund, I adopted the attained age
• contributions by the members are in accordance valuation method which assesses the cost of benefits
with the Local Government Pension Scheme accruing to existing members over their expected
Regulations 1997 until 31 March 2008, then in future working lifetime.
accordance with the Local Government Pension
Scheme (Benefits, Membership and Contributions) Since I have taken assets into account at their market
Regulations 2007; and value it is appropriate for me to take my lead from the
market when setting the financial assumptions used
• contributions are in accordance with the Rates
to value the ongoing liabilities, to ensure consistency
and Adjustments Certificate dated 31 March 2005
between the asset and liability valuation bases.
for the year ending 31 March 2008. Thereafter
for the three years commencing 1 April 2008 as
specified in our Rates and Adjustments Certificate
dated 31 March 2008.
Cheshire Pension Fund Annual Report 2008-09 Actuarial Statement 43
The key financial assumptions adopted for this valuation were as follows: Experience since April 2007
Assumption Derivation Rate at 31 March 2007 The financial experience that affects the Fund’s assets
Nominal Real and liabilities since the valuation at 31 March 2007
Price Inflation (RPI) Market expectation of long term future inflation 3.2% - has been unfavourable. Assets have significantly
as measured by the difference between yields on underperformed relative to the long term assumptions
fixed and index-linked Government bonds as at the set at the valuation causing the funding level to deteriorate.
This has been compounded by a fall in real gilts yields
Pay Increases* Assumed to be 1.5% p.a. in excess of price inflation 4.7% 1.5% which has increased the value placed on liabilities.
‘Gilt-based’ discount rate The yield on fixed-interest (nominal) and index-linked 4.5% 1.3% Accordingly, the level of employer contributions would
(real) Government bonds
be expected to increase above those currently and
Funding basis discount rate Assumed to be 1.55% p.a. above the yield on fixed 6.1% 2.8% prospectively payable based on the 2007 valuation if
interest Government bonds a valuation were carried out at a current date on the
current funding strategy. My opinion on the security
*plus an allowance for promotional increases
of prospective rights above is dependent upon any
In order to value both those liabilities which have The deficits for each individual employer are being increased contribution requirements being met by
accrued at the valuation date and those accruing in spread over a period, chosen by the Administering employers, although this statement should also be
respect of future service the stream of expected future Authority, ranging from the future working lifetime read in context of the statutory nature of the scheme.
liability payments is converted into a capital value today of employees up to 20 years. Any rise in contribution
It should be noted that employer contributions from
by assuming a return on Fund assets of 6.1% a year. rates from 31 March 2008, are being phased in over
1 April 2011 will be set following the next valuation
a period, chosen by the employer, up to a maximum
2007 Valuation Results of the Fund as at 31 March 2010.
of 4 years. Employers can pay more than the
minimum rate if they wish.
The 2007 valuation revealed that the Fund’s assets,
which at 31 March 2007 were valued at £2,385 million, Copies of the valuation report are available
were sufficient to meet approximately 85% of the on request from the Finance Department of
John Wright Fellow of the Faculty of Actuaries
liabilities accrued up to that date. Assets were Cheshire West and Chester Borough Council.
For and on behalf of Hymans Robertson LLP
valued at their market value.
The next valuation will be carried out as at 1 September 2009
Individual employers’ contributions have been set in 31 March 2010. Hymans Robertson LLP
accordance with the Fund’s Funding Strategy Statement. 20 Waterloo Street, GLASGOW G2 6DB.
44 Cheshire Pension Fund Annual Report 2008-09 Participating Employers & Publications
Participating Employers & Publications
Employers with active members participating in the Cheshire Pension Fund as at 31 March 2009 The Cheshire Pension Fund produces a number of publications,
hard copies of which are available upon request.
Major Scheme Employers Other Scheme Employers Admitted Bodies
Cheshire County Council Alderley Edge Parish Council Active8 Leisure Ltd Halton Please contact the Pensions section on 01244 976000
Cheshire East Council Birchwood Town Council Age Concern (Halton) Housing Trust or email email@example.com
BAM Construct if you require a copy.
Cheshire West and Bollington Parish Council Berkeley Care
Chester Council Management UK Ltd
Congleton Town Council The publications, which are listed below, are also
Cheshire Police Authority CADSART Hope Inclusion
Connexions - Time & Success available on our website: www.cheshirepensionfund.org
Cheshire Probation Committee Cheshire & Warrington Catering for Education
King’s School Funding Strategy Statement
Cheshire Fire Authority Disley Parish Council Cheshire & Warrington
Economic Alliance Macclesfield This document sets out the Fund’s commitment
Chester City Council Frodsham Town Council Museum Trust
Cheshire & Warrington
to meeting its liabilities while at the same time
Congleton Borough Council Grappenhall and Thelwall Making Space maintaining stable employer contribution rates.
Parish Council Tourism Board
Crewe & Nantwich Middlewich Joint
Borough Council Knutsford Town Council Cheshire Statement of Investment Principles
Community Action Cemetery Committee
Ellesmere Port & Macclesfield College Norton Priory
Summarises the Fund’s investment objectives
Neston Borough Council Cheshire County and the policies it uses to manage objectives.
Mid Cheshire College Sports Club Museum Trust
Halton Borough Council Middlewich Town Council Reliance Secure
Cheshire Peaks and Governance Policy Statement
Halton Borough Transport Nantwich Town Council Plains Housing Trust Task Management
This document describes the governance arrangements
Macclesfield Borough Council Nether Alderley Parish Council Cheshire Sandbach School in place for the management of the fund’s affairs.
Vale Royal Borough Council Northwest Fire Control Sports Trust South Cheshire
Warrington Borough Council Chester Diocesan Enterprises Governance Compliance Statement
Northwich Town Council
Warrington Borough Transport Adoption Services Strata Defines the extent the Fund complies with the best
Odd Rode Parish Council practice governance arrangements laid down by CLG.
Chester District Superclean-Fire
Penketh Parish Council Housing Trust The Dinner Ladies Communication Policy Statement
Poynton-with-Worth CLS Care Services
Parish Council The Waterways Trust Outlines the Fund’s policy on communication
Commission for Vale Contract Services with its stakeholders.
Poulton with Fearnhead Social Care Inspection
Parish Council Valuation
Creative Support Tribunal Service Valuation Report
Prestbury Parish Council
Dane Housing Volunteer Centre
This is produced by the Fund’s actuary every 3 years
Priestley Sixth Form College (Congleton) Ltd following the valuation of the fund. It outlines the assets
Reaseheath College of David Lewis Centre and liabilities of the fund as well as stating the employer
contribution rate for the next 3 years.
Riverside College Management Ltd Warrington Council
Sandbach Town Council Deafness for Voluntary Services
Sir John Deane’s College Support Network Warrington
South Cheshire College Eric Wright FM Ltd Housing Association
University College Chester First Bus (Chester) Weaver Vale
Warrington Collegiate Institute Food for Thought Housing Trust
West Cheshire College Golden Gates Housing Wulvern
Winsford Town Council Groundwork
Wybunbury Parish Council Mersey Valley
Contacts & Further Information
For more information on the Cheshire Pension Fund
please contact the Pensions Section using the following
Tel: 01244 972032
Investments & Accounts
Tel: 01244 972652
Tel: 01244 972963
You can also email the office on:
or write to us at:
Cheshire Pension Fund, Cheshire West and Chester Council,
County Hall, Chester CH1 1SG.
To get in touch with the Senior Manager,
Corporate Finance, contact:
Stephan Van Arendsen
Tel: 01244 973727
To get in touch with the Head of Finance,
Tel: 01244 972537
To promote accessability for all, this document
can be made available in other formats on request.