report and accounts 2011 · 2015. 5. 8. · report & accounts 2011 report & accounts 2011 4...

Kent County Council Pensions Section

Report & Accounts 2011Superannuation Fund

In association with Local Authorities and other bodies in Kent

Report & Accounts 2 0 1 1


1 Kent County Council Superannuation Fund Kent County Council Superannuation Fund 1

Page No

Members and Advisers 2

Scheme Documentation 3

Chairmans Introduction 4

Investment Report 6

Scheme Details 11

Pension Section Performance 14

Report of the Consulting Actuaries 15

Statement of Responsibility 17

Audit Opinion 18

Accounting Policies and other Procedures 20

Fund Account 22

Net Assets Statement 24

Notes to the Accounts 25

Risk Management 38

List of Employing Bodies 40

The Fund Profile - 5 Year Summary 45

Appendix 1: Major UK and Overseas Equity and Unit Trust Holdings by Value 46

Appendix 2: Property Valuation 48

Contents


2 Kent County Council Superannuation Fund

Administering Authority Kent County Council

Kent County Council Members as at 31 March 2011 Mr J E Scholes Chairman (Conservative)Mr D S Daley Vice Chairman (Liberal Democrat)Mr J A Davies (Conservative)Mr M Jarvis (Conservative)Mr J F London (Conservative)Mr R A Marsh (Conservative)Mr R J Parry (Conservative)Mr M V Snelling (Conservative) Other Local Authority Representatives Mr K Bamber (Conservative) (Medway Council)Mr J Burden (Labour) (Gravesham Borough Council)Mr P Clokie (Conservative) (Ashford Borough Council)Mr R Packham (Liberal Democrat) (Ashford Borough Council) Union Representative Mr S Richards

Staff Representative Ms J De Rochefort

Kent Active Retirement Fellowship Mrs A DickensenMrs M Wiggins

Investment Managers and Advisers Baillie Gifford & CoGoldman Sachs Asset Management LimitedGMOHarbourvest PartnersHenderson Fund ManagementImpaxInvesco PerpetualPartners GroupSchroder Investment Management LimitedState Street Global Advisers LimitedYFM Equity PartnersDTZ Investment Management Limited Investment Consultant Hymans Robertson LLP Consulting Actuaries Barnett Waddingham LLP

Auditors Audit Commission Performance Measurers The WM CompanyInvestment Property Databank Limited AVC Providers Equitable Life AssurancePrudential Assurance CompanyStandard Life Assurance County Officers Mr A Wood, Acting Corporate Director of Finance and ProcurementMr N Vickers, Head of Financial ServicesMr G Wild, Director of Governance and Law

Members & Advisers

County Council Members are appointed by the respective political parties.

The District Council representatives are appointed by the respective District Council, in connection with the Association of District Councillors.

Other representatives are nominated and appointed by the respective bodies.

The same appointees are responsible for the removal of their representatives.

Appointments and removals are noted at the Superannuation Fund Committee meetings.

Enquiries and more detailed information on the Fund benefits and contributions can be obtained by contacting Pat Luscombe (Pensions Manager) at 2nd Floor, Brenchley House, Week Street, Maidstone, Kent (01622 694714).

Enquiries regarding the Fund’s accounting and investment activities should be made to Nick Vickers (Head of Financial Services) at County Hall.Sessions HouseCounty HallMaidstoneKentME14 1XQ(01622 694603)




The Fund is required by the Department for Communities & Local Government to maintain certain formal documents, rather than reproduce them in this report they are on the www.kent.gov.uk website.

The key documents are:

• Statement of Investment Principles

• Funding Strategy Statement

• Environmental, Social and Governance Investment

• Policy Statement

• Governance Compliance Statement

• Communication Policy

Scheme Documentation



Chairman’s Introduction

The last year has been another highly positive one for the Fund. Overall the Fund increased in value by £316m and we received an encouraging actuarial valuation. The Fund is in good shape but there are still huge risks in financial markets and we will look to protect the gains that we have made and reduce risk by spreading our investments across a wider range of assets moving forward.

I would now like to address some of the major issues for the Fund in the year:

Actuarial Valuation

The outcomes of the valuation at Fund level were highly satisfactory with the funding level increasing by 4% to 77% and at Fund level the employer contribution rate reducing by 2%-the actual rates paid reflect changes at individual employer level. Of the 16 local authority employers 15 saw a reduction in the rate the actuary was prepared to certify. The decision to appoint Barnett Waddingham as actuary in 2009 has been confirmed as providing a technically robust approach which reflects the reality of employer’s financial positions as much as possible.

Fund Managers

This was a strong year for fund performance with a total return of +9% outperforming the fund benchmark of +8.1%. The largest equity mandates in the Fund; Schroders UK equities and Baillie Gifford overseas equities performed particularly strongly.

The Fund removed Alliance Bernstein in August after a prolonged period of under performance in global equities. These monies were then placed in passive global equities funds managed by State Street.

In April 2010 £25m was invested with Impax Asset Management, a global equity manager which invests in companies that derive over 50% of their revenue from environmental themes.

Alternative Investments

The Fund needs to spread its investments into different types of assets to reduce the exposure that the Fund has to Equities. The Fund has deliberately sought to do this as a relatively low risk way through the following investments:

Private equity manager appointment – Harbourvest was appointed to manage a £75m private equity fund of funds mandate in May 2010 and by the end of March 2011 £60m had been committed.

Infrastructure manager appointment – Partners Group was appointed to manage a £75m infrastructure fund of funds mandate in November 2010 and this was fully committed by March 2011.

Reflecting our very deliberate approach to where we take risk in March 2011 we decided not to proceed with the appointment of a currency manager.




Treasury Management

A separate bank account for the Superannuation Fund has been set up and cash is managed on a fully segregated basis using counterparties agreed by the Superannuation Fund Committee. The counterparties are Royal Bank of Scotland, NatWest Bank and the JP Morgan Sterling Liquidity Fund.

Lord Hutton’s Review of Public Sector Pensions

All the public sector pension schemes are under review and the Government’s response to Lord Hutton’s review is due in the autumn. Inevitably there will be major changes to the Local Government Scheme in the next 2-3 years and the Fund will need to communicate well with scheme members and employers and be alert to what could be fundamental changes which may require a major revision of our investment strategy.

Whilst we support change the funded position of the LGPS does put us in a much stronger position than unfunded public sector schemes and this seems to have been ignored in Lord Hutton’s review.

Development of the website

The website www.kentpensionfund.co.uk has been fully updated and we want it to become much more central in how we communicate with scheme members and employers.

James Scholes

Chairman – Superannuation Fund Committee



Investment Report

Asset Allocation

The strategic asset allocation of the Fund is:

The asset allocation is based upon detailed financial modelling undertaken by Hymans Robertson which evaluates return scenarios against measures of Prudence, Affordability, Stability and Stewardship.

The actual allocation at 31 March 2011 reflects the strength of equity returns. The Superannuation Fund Committee meets 6 times a year and at each meeting considers whether any re-balancing is required.

Benchmark Actual at 31 March 2011

% % % %

Equities:

UK 34.5 37

Global 34.5 69 37 74

Fixed Income 15 14

Property 11 9

Cash/Other Assets

5 3

100 100




Market Returns to 31 March 2011

All equity markets other than Japan performed strongly during the year. Returns in the major asset classes were:

The relative performance of the Fund for 2010-11 was:

This placed the Fund in the 22nd percentile over 1 year, 31st percentile over 3 years and 60th percentile over 5 years compared with other Local Authority Funds.

1 year 3 year 5 year

% % %UK Equities +8.7 +5.4 +3.7

North American Equities +9.6 +10.5 +5.0

European Equities ex UK +7.5 +3.3 +5.0

Japan Equities -4.0 +3.6 -3.3

Pacific ex Japan equities +14.6 +13.8 +13.0

Other International Equities +8.2 +8.7 +5.2

UK Bonds +5.1 +5.3 +4.8

UK Index Linked +6.5 +5.0 +6.2

UK Property +10.7 -1.4 -0.2

Cash +0.4 +1.5 +3.0

Kent Fund WM Local Authority Universe

Average Return

% %

1 Year 9.0 8.1

3 Year 6.2 5.75 Year 3.6 4.1



Investment Managers

All assets of the Fund other than cash are under external management. All manager appointments are made through European Union public service tender processes, in a small number of cases direct investments are made in funds.

The Manager Structure as at 31 March 2011 was:

More details of the mandates are contained in the Statement of Investment Principles and committee papers available at www.kent.gov.uk/pensions

UK Equities Schroder Investment Management

Invesco Perpetual

State Street Global Advisors

Global Equities Baillie Gifford & Co

GMO

Schroder Investment Management

State Street Global Advisors

Impax Asset Management

Fixed Income Goldman Sachs Asset Management

Schroder Investment Management

Property DTZ Investment Management

Alternatives Henderson Secondary PFI Funds

Partners Group Global Infrastructure

YFM Private Equity

Harbourvest Private Equity




Performance to 31 March 2011

Investment Manager Performance

Overall in the year the Fund returned +9% against a benchmark of +8.1%. The Fund spreads its assets across a wide range of different type of asset and also across managers who are taking different approaches to adding value. No individual manager or style of management will always be successful.

The main reason for the outperformance in the year was the strong performance of the 2 largest equity mandates, Schroders’ management of UK equities and Baillie Gifford’s management of overseas equities. These managers’ 3 year track records are also very strong.

The Invesco UK equity mandate is much more defensively positioned than our other equity mandates and we expect strong outperformance in this financial year.

1 Year 3 Year

Fund %

Benchmark %

Fund %

Benchmark %

UK Equity

Schroders UK 12.9 8.6 8.6 5.3

State Street 8.8 8.7

Invesco 8.8 8.7 5.4 5.4

Overseas Equity

Baillie Gifford 12.4 7.5 11.1 7.6

GMO 6.5 7.4 6.1 7.6

Impax n/a n/a n/a n/a

Schroders 10.2 7.4 10 7.6

State Street 7.8 8

Fixed Interest

Goldman Sachs Fixed Interest 5.5 5.3 6.5 5.6

Schroders Fixed Interest 4.1 3 7 4.8

Property

UK Property 10.7 10.7 1.9 -1.4



The Fund removed Alliance Bernstein as manager of global equities last August after a period of poor performance where the Fund was not confident of out performance moving forward. Alliance Bernstein have since seen a very large outflow of funds and this was a well timed decision.

The Fund has a significant element of passive equity exposure managed by State Street. This is in part a holding position until funds are actually invested in alternative areas such as Private Equity and Infrastructure, but also reflects an industry approach of getting some of our equity exposure very cheaply through a passive manager.

Both our Fixed Income managers Goldman Sachs and Schroders added value compared with their benchmark.

Commercial Property returns were good in the year but the recovery is stalling and Commercial Property values still remain well down from their peak. The Fund is looking to add to its’ property exposure but only in a well risk managed way.

The fund’s major equity holdings are shown in Appendix 1 page 46 and a complete list of properties owned is shown in Appendix 2 page 48.

Custodian

The Fund uses an independent custodian, JP Morgan, to safeguard its segregated financial assets. The custodian is responsible for the safe-keeping of those assets, the settlement of transactions, income collection and other administrative actions in relation to assets.




Kent County Council administers the Kent Pension Fund on behalf of its own employees and the other employing bodies. Scheme regulations are set by Central Government. From April 2008 major changes were made to the benefit structure by Central Government.

Benefits

The scheme is a defined benefit occupational pension scheme which provides a significant range of benefits to its members. Membership is open to all employees of qualifying employers who have a contract of employment of at least 3 months and are under the age of 75 and most are automatically admitted to membership of the scheme upon commencing employment.

Scheme benefits are based upon the individual’s length of period of membership and ‘final salary’ which will generally be the final 12 months pensionable pay of the scheme member.

For membership built up after 31 March 2008 members will receive an annual pension based on 1/60th of their final year’s pensionable pay and will have the option to take part of the pension as a tax free lump sum. For membership before 1 April 2008 they will receive an annual pension based on 1/80th of their final year’s pensionable pay and an automatic tax free lump sum of 3 times the pension.

The amount that the employee contributes has been amended from April 2008, these contributions range between 5.5% and 7.5% of pay with the rate being determined by the level of the member’s pay.

If a member has to leave work at any age due to permanent ill health the scheme provides a tiered ill health retirement package. If the member is unlikely to be capable of gainful employment within a reasonable time after they leave they will receive increased benefits payable immediately. A scheme member needs to have total membership of at least 3 months to qualify for ill health benefits.

Where a scheme member dies in service a lump sum is payable by way of a death grant equal to three years’ pay. Scheme members are able to make an ‘expression of wish’ concerning to whom the grant should be payable in the event of their death.

The scheme also makes provision in the event of death for the payment of pensions to surviving spouses, civil partners, eligible children and, subject to certain qualifying conditions, nominated co-habiting partners.

Increasing benefits

In addition to the scheme benefits members may, if they wish, pay extra to increase their retirement benefits. They can do this either by paying additional contributions to buy extra LGPS pension, by making payments to the scheme’s Additional Voluntary Contributions (AVC) arrangements, or by making payments to a personal pension, stakeholder pension or Free-standing AVC scheme of their choice.

Full details of the scheme are provided on the www.kent.gov.uk/pensions website.

Scheme Details



Communications

The Pension Section communicates with members and employers in a variety of ways. Newsletters are sent to both pensioners and existing scheme members. Pension forums are used to communicate with employers. Scheme members and pensioners have access to the Pensions Section to make written, e-mail or telephone enquiries. Scheme members receive an annual benefit illustration and each pensioner and deferred pensioner is advised annually of the indexation increase to their pension.

The Kent Active Retirement Fellowship (KARF) has been established as a facility in which pensioners can become members and participate in a wide variety of activities. KARF has established groups throughout the County and would welcome new members.

Internal Dispute Procedure

The Kent Pension Scheme has a formal Internal Dispute Procedure to consider a member dispute over a decision made either by a scheme employer or Kent County Council acting as the administering body. An independent person is appointed to consider an appeal made by a scheme member.

As at 31 March 2011, scheme employers make up the membership as follows:

2010/11 Disputes considered 2009/10 Appeals upheld

5 0

Contributors Pensioners Deferred Pensioners

Kent County Council 21,956 15,509 16,559

Medway Council 5,134 2,203 3,482

Kent Police Authority 2,731 1,369 1,495

Kent Fire Authority 280 126 106

District Councils 4,737 7,515 4,805

Other Scheduled 6,658 2,584 4,473

Total Scheduled bodies 19,540 13,797 14,361

Admitted Bodies 1,912 1,243 1,698

Grand Total 43,408 30,549 32,618




Member Age Profile

As at 31 March 2011, contributing membership is made up of the following age bands:–

Under 20 172

20 – 25 2,112

26 – 30 2,793

31 – 35 3,394

36 – 40 5,043

41 – 45 7,316

46 – 50 7,891

51 – 55 6,727

56 – 60 5,194

61 – 65 2,468

66 – 70 267

Over 70 31



The Pension section is subject to performance monitoring, both internally and externally against other Local Authority Pension Funds (CIPFA Benchmarking). The performance outcomes are shown in the tables below.

CIPFA Benchmark Survey

The Kent Pension Fund administration section participates annually in the CIPFA Benchmark survey. The survey compares the cost of administration with 63 other Local Authority Administering Bodies across the UK. The results contained in these accounts are in respect of the Kent Pension Section performance in the year ending 31 March 2010.

The results above place Kent at 17th of 63 authorities in terms of the cost of administration per member of the scheme.

Pension Section Performance 2010/11

Type of Case Target Time Number Processed Processed Within Target

Calculation and payment of retirement award

20 days from receipt of paperwork

2,076 99%

Calculation and payment of dependants benefit

15 days from receipt of paperwork

315 99%

Provision of estimates 20 days from receipt of paperwork

2,861 98%

Correspondence Full reply within 15 working days

1,705 99%

Kent Pension Scheme All Scheme Average

Total cost of administration per scheme member

£19.12 £22.72

Payroll costs per pensioner (including staff) £1.43 £3.49

Staff costs per Scheme Member (ex Payroll) £10.19 £10.05

IT Costs per member £1.49 £2.14

Communication costs per member £2.03 £0.92

Actuarial costs per member £2.03 £1.11

Accommodation costs per member £1.23 £0.75




Introduction

As required by Regulation 36 of The Local Government Pension Scheme (Administration) Regulations 2008 (“the Regulations”) as amended, an actuarial valuation of the Fund was carried out as at 31 March 2010.

2010 Valuation

The 2010 valuation certified a common contribution rate of 20.8% of pensionable pay to be paid by each employing body participating in the Kent County Council Pension Fund. In addition to this each employing body has to pay an individual adjustment to reflect its own particular circumstances and funding position within the Fund. Details of each employer’s contribution rate are contained in the Statement to the Rates and Adjustment Certificate in the triennial valuation report.

Employer Contribution rates

Employers’ contributions rates, in addition to those paid by the members of the Fund, are set to be sufficient to meet:

• The ongoing annual accrual of benefits for active members in respect of each employer that build up each year within the Fund, allowing for future pay increases and increases to pension in payment when these fall due.

• Plus an amount to fund the difference between each participating employer’s notional share of value of the Fund’s assets compared with 100% of their liabilities in the Fund.

Asset Value and Funding Level

The value of the Fund’s assets as at 31 March 2010 for valuation purposes was £2,780m which represented 77% of the Fund’s accrued liabilities at that date allowing for future increases in pay and pensions in payment.

The contribution rates were calculated using the Projected Unit Method.

The liabilities were valued allowing for expected future investment returns and increases to benefits as determined by market levels at the valuation date as follows;

• Rate of return on investments 6.6% per annum

• Rate of increases in pay 5.0% per annum

• Rate of Increases to pensions in payment 3.0% per annum

Report of the Consulting Actuaries



Post Valuation Events – Changes in market conditions

Since March 2010, we estimate that investment returns are likely to have been slightly more than assumed at the 2010 valuation although expectations for future levels of inflation have increased.

Overall, we estimate that the current financial position of the Fund will not be materially different to the position as at the 2010 valuation.

The next actuarial valuation is due as at 31 March 2013 and results will be reported during 2013/14.

Graeme D Muir FFA

Partner

28 July 2011

For and on behalf of Barnett Waddingham




The Authority’s Responsibilities

The authority is required:

• to make arrangements for the proper administration of its financial affairs and to secure that one of its officers has the responsibility for the administration of those affairs. In this authority, that officer is the Corporate Director of Finance and Procurement.

• to manage its affairs to secure economic, efficient and effective use of resources and safeguard its assets.

Corporate Director of Finance and Procurement’s Responsibilities

The Corporate Director of Finance and Procurement is responsible for the preparation of the pension fund’s Statement of Accounts in accordance with proper practices as set out in the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United Kingdom, and is required to present fairly the financial position of the Superannuation Fund at the accounting date and its income and expenditure for the year ended 31 March 2011.

In preparing this statement of accounts, the Corporate Director of Finance and Procurement has:

• selected suitable accounting policies and then applied them consistently;

• made judgements and estimates that were reasonable and prudent;

• complied with the Code.

The Corporate Director of Finance and Procurement has also:

• kept proper accounting records which were up to date;

• taken reasonable steps for the prevention and detection of fraud and other irregularities.

Acting Corporate Director of Finance and Procurement

Statement of Responsibilities for the Statement of Accounts



Independent auditor’s report to Members of Kent County Council

Opinion on the pension fund accounting statements

I have audited the pension fund accounting statements for the year ended 31 March 2011 under the Audit Commission Act 1998. The pension fund accounting statements comprise the Fund Account, the Net Assets Statement and the related notes. These accounting statements have been prepared under the accounting policies set out in the Statement of Accounting Policies.

This report is made solely to the members of Kent County Council in accordance with Part II of the Audit Commission Act 1998 and for no other purpose, as set out in paragraph 48 of the Statement of Responsibilities of Auditors and of Audited Bodies published by the Audit Commission in March 2010.

Respective responsibilities of the Corporate Director of Finance and Procurement and auditor

As explained more fully in the Statement of the Corporate Director of Finance and Procurement Responsibilities, the Corporate Director of Finance and Procurement is responsible for the preparation of the pension fund’s Statement of Accounts in accordance with proper practices as set out in the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United Kingdom. My responsibility is to audit the accounting statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require me to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the accounting statements sufficient to give reasonable assurance that the accounting statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the fund’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the fund; and the overall presentation of the accounting statements. I read all the information in the annual report to identify material inconsistencies with the audited accounting statements. If I become aware of any apparent material misstatements or inconsistencies I consider the implications for my report.

Opinion on accounting statements

In my opinion the pension fund’s accounting statements:

• give a true and fair view of the financial transactions of the pension fund during the year ended 31 March 2011 and the amount and disposition of the fund’s assets and liabilities as at 31 March 2011; and

• have been properly prepared in accordance with the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United Kingdom.




Opinion on other matters

In my opinion, the information given in the annual report for the financial year for which the accounting statements are prepared is consistent with the accounting statements.

Matters on which I report by exception

I have nothing to report in respect of the governance statement on which I report to you if, in my opinion the governance statement does not reflect compliance with the Local Government Pension Scheme (Administration) Regulations 2008 and related guidance.

Darren Wells

Officer of the Audit Commission

1st floor Millbank Tower

MillbankLondon

SW1P 4HQ

19th October 2011



1. CIPFA Code of Practice on Local Authority Accounting in the United Kingdom 2010/11

The Pension Fund accounts have been prepared in accordance with the CIPFA Code of Practice on Local Authority Accounting in the United Kingdom 2010/11 based on International Financial Reporting Standards. The accounts are prepared on a going concern basis. The accounts for 2010/11 are the first to be prepared on the basis of IFRS. There were no material changes to the accounts as the result of the IFRS transition.

2. Investments

Quoted investments are stated at market value based on the closing bid price quoted on the relevant stock exchange on 31 March 2011. Unit Trusts and managed funds are valued at the closing bid price. Unquoted investments are valued by the fund managers at the year end at fair value.

Derivatives with an initial purchase price are included in the accounts as purchases. Those that do not have an initial purchase price but require a deposit such as an initial margin to be placed with the broker are recorded at cost on purchase. Derivative contracts are included in the net asset statements at fair value.

The industrial and commercial properties were valued at open market prices in accordance with the valuation principles laid down by the Royal Institution of Chartered Surveyors. The valuation has been undertaken by Colliers CRE, as at 31 December 2010. The results of the valuation have then been indexed in line with the Investment Property Databank Monthly Index movement to 31 March 2011.

3. Currency Transactions

Assets and liabilities in foreign currency are translated into sterling at exchange rates ruling at the year-end. Differences arising on the translation of investments are included in investment gains.

All foreign currency transactions are translated into sterling at exchange rates ruling at the transaction date.

4. Contributions, Benefits and Transfer Values

All contributions are accounted for on an accruals basis and are at rates as specified in the rates and adjustments certificate. Payment of pensions and pensions increases are accounted for on an accruals basis. Lump sum payments are accounted for on the date of retirement or on death.

Transfer values into and out of the Fund, return of contributions and other intermittent transactions are not dealt with on an accruals basis but are included in the accounts when the transactions occur.

Accounting Policies




5. Investment Income

Dividends, rents and cash deposits have been accounted for on an accruals basis and where appropriate from the date quoted as ex-dividend (XD). Foreign income has been translated into sterling at the rate ruling at the date of the transaction.

Income arising from overseas investments is subject to deduction of withholding tax unless exemption is permitted by and obtained from the country of origin.

6. Expenditure

All expenses and benefits are accounted for on an accruals basis.



For the year ended 31 March

Contributions and Benefits Notes 2010-11 2009-10 £000’s £000’s

Contributions Receivable

from employers 4 180,822 175,531

from employees 4 48,866 48,849

Transfers in 5 13,929 14,876

243,617 239,256

Benefits Payable

Pensions 6 (126,220) (123,803)

Lump Sums 6 (40,803) (33,353)

Payments to and on account of leavers

Refunds of contributions (24) (231)

Transfers Out 7 (10,595) (18,678)

Other payments

Administrative & other expenses borne by the scheme 8 (2,868) (3,018)

(180,510) (179,083)

Net additions from dealings with Members 63,107 60,173

Fund Account




Returns on Investments Notes 2010-11 2009-10 £000’s £000’s

Investment Income 9 56,566 65,151

Change in Market value of investments 10 203,838 689,461

Loss on Icelandic Investment 12 874

260,404 755,486

Investment Management Expenses

Investment Managers 8 (5,342) (5,116)

Actuarial (Investment Consultancy) (115) (107)

Performance Measurement (55) (50)

Other Investment 8 (1,020) (610)

(6,532) (5,883)

Net Return on Investments 253,872 749,603

Net Increase in Fund during the year 316,979 809,776

Opening net assets of the scheme at 1 April 2,885,463 2,075,687

Closing net assets of the scheme at 31 March 3,202,442 2,885,463

Fund Account



Net Asset Statement as at 31 March

Notes 2011 2010 £000’s £000’s £000’s £000’s

Investments at Market Value 10

Equities - UK 556,260 527,343 - Overseas 506,392 1,062,652 659,241 1,186,584

Index-Linked Securities - Public 34,731 30,540

Pooled Investment Vehicles - Managed Funds 194,738 181,859 - Unit Trusts 1,240,742 911,404 - Insurance Contracts 245,010 194,148 - Other 26,296 8,004

1,706,786 1,295,415Property 13 280,570 232,511Derivatives 0 151Cash Deposits 60,943 63,706Other Investments 5,057 5,715

3,150,739 2,814,622

Investment Liabilities 11 0 (3,703)

3,150,739 2,810,919

Current Assets 11 60,261 80,926

Current Liabilities 11 (8,558) (6,382)

Net Assets 3,202,442 2,885,463

During 2010-11 the Alliance Bernstein mandate was terminated and all derivatives were closed out. The fund no longer holds any derivatives.

The accounts summarise the transactions of the Pension Fund and deal with the net assets available. They do not take account of obligations to pay pensions and benefits which fall due after the end of the Pension Fund year. The actuarial position of the Pension Fund, which does take account of such obligations is dealt with in the Actuary’s Report included in the Annual Report and these accounts should be read in conjunction with that report. The full actuarial valuation is available on www.kent.gov.uk

Net Asset Statement




Notes to the Accounts

1) Actuarial Valuation as at 31 March 2010

As required by Regulation 36 of The Local Government Pension Scheme (Administration) Regulations 2008 (“the Regulations”) as amended, an actuarial valuation of the Fund was carried out as at 31 March 2010.

The market value of the Fund’s assets at the valuation date was £2,780m and the liabilities were £3,623m. The assets therefore, represent 77% (2007 73%) of the Fund’s accrued liabilities, allowing for future pay increases. The main actuarial assumptions used were as follows –

Valuation of assets:- Assets have been valued at a 6 month smoothed market value

Rate of return on investments: 6.6% p.a.

Rate of general pay increases: 5.0% p.a.

Rate of increases to pensions in payment (in excess of guaranteed minimum pension): 3.0% p.a.

The actuarial valuation has been undertaken on:

• the projected unit valuation method where there is an expectation that new employees will be allowed to join an employer; or

• the attained age valuation method for employers who were closed to new entrants.

These methods assess the costs of benefits accruing to existing members during:

• the year following valuation; or

• the remaining working lifetime, respectively allowing for future salary increases. The resulting contribution rate is adjusted to allow for any difference in the value of accrued liabilities and the market value of assets.

2) IAS 26 Disclosures as at 31 March 2011

IAS 26 requires the actuarial present value of promised retirement benefits to be disclosed and gives three options for disclosure:

Option A – in the Net Assets Statement, in which case it requires the statement to disclose the resulting surplus or deficit

Option B – in the notes to the accounts

Option C – by reference to this information in an accompanying actuarial report.

Option B has been chosen for the purposes of the Pension Fund accounts.




The actuary has calculated that as at 31 March 2011 based on the actual Fund Value, the Pension Fund had a net liability of £1,321m as follows:

Net Pension Asset as at 31-Mar-11 31-Mar-10 31-Mar-09

£000’s £000’s £000’s

Present Value of Funded Obligation 4,523,250 5,137,091 3,593,235

Fair value of Scheme Assets (bid value) 3,202,442 2,885,463 2,075,686

Net Liability 1,320,808 2,251,628 1,517,549

Note, the Present Value of Funded Obligation consists of £3,761,840,000 in respect of Vested Obligation and £761,410,000 in respect of Non-Vested Obligation.

3) Taxation

The Fund is accepted by the Inland Revenue as a registered pension scheme in accordance with paragraph 1(1) of Schedule 36 to the Finance Act 2004 and, as such, qualifies for exemption from tax on investment income, underwriting commission and gains on selling transactions. By virtue of Kent County Council being the administering authority, VAT input tax is recoverable on all Fund activities including investment and property expenses.





4) Contributions Receivable 2010-11 2009-10 £000’s £000’s From Employers

Normal 110,877 110,379

Augmentation - (Early Retirement recoverable costs) 9,173 4,219

Deficit Funding 60,772 60,933

180,822 175,531

Analysis of Employers’ Contributions

Kent County Council 80,525 80,214

Scheduled Bodies 89,668 85,125

Admitted Bodies 10,629 10,192

180,822 175,531

2010-11 2009-10

£000’s £000’s

From Members




Lump Sum Contributions 302 37

48,866 48,849

Note:

As at 31 March the comparative numbers of contributing members were:

2011 2010




43,408 44,509




5) Transfers In 2010-11 2009-10 £000’s £000’s

Individual 13,929 14,876

6) Benefits Payable KCC Scheduled Admitted Bodies Bodies 2010-11 2009-10 £000’s £000’s £000’s £000’s £000’s

Pensions

Retirement pensions 39,840 41,478 4,194 85,512 80,231

Widows pensions 2,343 2,996 253 5,592 5,348

Children’s allowances 75 135 8 218 219

Pensions increase 18,159 20,048 1,169 39,376 42,582

Less benefits recovered directly from employing authorities (4,356) (122) (4,478) (4,577)

60,417 60,301 5,502 126,220 123,803

Lump Sums

Retirement Lump Sums 15,970 19,181 2,228 37,379 30,369

Death Benefits 1,505 1,908 11 3,424 2,984

17,475 21,089 2,239 40,803 33,353

The amount stated as pensions increase represents the year on year cumulative increase on the nominal retirement pension received at the start date of retirement.

7) Transfers Out 2010-11 2009-10 £000’s £000’s

Individual 10,595 18,678





8) Expenses borne by the Scheme

2010-11 2009-10

£000’s £000’s

Administrative and other expenses

Internal Administration 2,423 2,511

Actuarial Fees 205 199

Audit Fee 50 50

Legal & Other Professional Fees 108 221

Other miscellaneous expenses 82 37

2,868 3,018

Investment Management Expenses

Investment Managers 4,707 4,627

Property Advisors 635 489

5,342 5,116

Other Investment Management Expenses

Miscellaneous property expenses 533 356

Insurance recoverable received 68 (127)

Disbursements paid 570 683

Property Income (328) (495)

Custody Fees 177 193

1,020 610




9) Summary of Income from Investments

Notes 2010-11 2009-10 £000’s % £000’s %

Fixed Interest - UK Public 1,990 3.05 - UK Quoted 3,449 5.29 - Overseas 757 1.16

Index-Linked - UK 253 0.45 315 0.48

Equities - UK 15,549 27.48 15,522 23.82 - Overseas 12,594 22.26 11,882 18.24

Pooled Investment Vehicles

Managed Funds - UK 0 0.00 180 0.28 - Overseas 4,598 8.13 3,764 5.78

Unit Trusts - UK Public/Fixed Interest 7,213 12.75 10,664 16.37 - Overseas Public/Fixed Interest - UK 2,782 4.27 - Overseas

Insurance Contracts - UK

Other - UK 97 0.17 45 0.07 - Overseas 382 0.68

Property - Freehold 13 10,379 18.35 10,935 16.78 - UK Pooled Vehicles 4,347 7.68 1,052 1.61 - Overseas Pooled Vehicles 285 0.50 23 0.04

Total Income From Investments 55,697 98.46 63,360 97.25

Currency Deposits - Currency Deposit Accounts 29 0.05 2 0.00 - Sterling Cash Balances 509 0.90 1,310 2.01 Sub-Underwriting Commission/Other 79 0.14 447 0.69 Stock Lending 252 0.45 32 0.05

Total 56,566 100.00 65,151 100.00





10) Analysis of Change in Market Value of Investments

Market Purchases Sales Change in Market Value as at at Cost Proceeds Market Value as at 31.03.10 Value 31.03.11 £000’s £000’s £000’s £000’s £000’s

Equities - UK quoted 527,343 79,454 (101,377) 50,840 556,260 - Overseas quoted 659,241 206,810 (382,442) 22,783 506,392

Index Linked - UK Public 30,540 8,100 (4,594) 685 34,731

Pooled Investment Vehicles Managed Funds - UK 2,033 0 0 1,215 3,248 - Overseas 179,826 5,286 (5,286) 11,664 191,490Unit Trusts - UK Public/Fixed Interest 307,039 11,544 6,544 325,127 - Overseas Public/Fixed 67,320 0 0 3,967 71,287Interest - UK 343,795 (2) (699) 31,673 374,767 - Overseas 193,250 437,360 (205,446) 44,397 469,561

Insurance Contracts - UK 194,148 30,559 0 20,303 245,010Other - UK 8,004 162 0 2,055 10,221 - Overseas 0 16,387 0 (312) 16,075

Property - Freehold 168,177 15,709 7,068 190,954 - UK Pooled Vehicles 46,802 22,814 2,259 71,875 - Overseas Pooled Vehicles 17,532 85 124 17,741Derivatives - UK Equity future contracts (11) 11 0 - Overseas Equity future contracts 162 789 (951) 0

Total 2,745,201 835,057 (700,784) 205,265 3,084,739

Cash Deposits 63,706 (1,427) 60,943Other Investments - Debtors - Outstanding Sales 2,213 656 - Creditor - Outstanding Purchases (3,682) 0 Purchases - Profit/(Loss) on Forward Currency (21) 0 - Investment Income Accruals 3,502 4,401

Total 2,810,919 203,838 3,150,739




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 on sales of investments during the year.

Transaction costs are included in the cost of purchases and sales proceeds. Transaction costs include costs charged directly to the Pension Fund such as fees, commissions, stamp duty and other fees. Transaction costs incurred during the year amounted to £884,068 (2009-10 £1,247,197). In addition to the transaction costs disclosed above, indirect costs are incurred through the bid-offer spread on investments within pooled investment vehicles. The amount of indirect costs is not separately provided to the Pension Fund.

The following reflects the monetary and percentage split of the investments of the Fund at 31 March and previous year comparisons.

2011 2010 £000’s % £000’s %

Alliance Bernstein 0 0.0 253,065 9.0

Baillie Gifford 574,355 18.3 512,705 18.3

DTZ 280,887 8.9 233,090 8.3

GMO 191,489 6.1 179,826 6.4

Goldman Sachs 244,713 7.8 226,217 8.1

HarbourVest 1,147 0.0 0 0.0

Henderson 8,130 0.3 6,432 0.2

Impax 26,877 0.9 0 0.0

Invesco 355,861 11.3 326,931 11.6

JP Morgan 23,984 0.8 23,119 0.8

Partners Group 14,928 0.5 0 0.0

Schroders 883,517 28.1 794,675 28.3

State Street Global Advisors 537,701 17.1 251,276 8.9

YFM 2,091 0.1 1,572 0.1

3,145,680 100.0 2,808,908 100.0

The investment manager totals exclude investment debtors and creditors.





11) Current Assets & Liabilities

2011 2010 £000’s £000’s £000’s £000’s

Investment Liabilities Outstanding Purchases 0 (3,682) Loss on forward currency 0 (21)

0 (3,703)

Current Assets Contributions from: - Scheduled Bodies 30,200 23,424 - Admitted Bodies 1,464 31,664 850 24,274 Other current assets 863 1,327 Cash Deposits 27,734 55,325

60,261 80,926

Current Liabilities Unpaid Benefits (4,386) (4,369) Other current liabilities (4,172) (2,013)

(8,558) (6,382)

12) Loss on Icelandic Investment

At 31 March 2011 the Pension Fund is carrying a provision of £229,861 unchanged from 2010, in respect of cash investments in the Icelandic banks which collapsed in 2008, based on the assumption that KCC has priority creditor status. This is included in other current liabilities per note 11.

13) Property

Valuation of Investment Properties

The pension fund directly owns 26 investment properties, all of which are independently valued by Colliers CRE, an external firm of professional valuers. They valued the properties at fair value in accordance with the principles laid down by the Royal Institute of Chartered Surveyors as at 31 December 2010. The results of the valuation have then been indexed in line with the Investment Property Databank Monthly Index movement to 31 March 2011.




Property Income and Expenditure

2010-11 2009-10 £000’s £000’s

Rental Income from Investment Properties 10,379 10,935

Direct Operating Expenses on investment properties (843) (434) generating rental income

9,536 10,501

14) Additional Voluntary Contributions

Scheme members have the option to make additional voluntary contributions to enhance their pension benefits. In accordance with regulation 4(2)(b) of the LGPS (Management and Investment of Funds) Regulations 2009, these AVC contributions are not included within the Pension Fund Accounts. These contributions are invested separately from the Pension Fund, with either Equitable Life Assurance Company, Prudential Assurance Company or Standard Life Assurance Company. The AVC provides secure additional benefits on a money purchase basis for those members electing to pay additional voluntary contributions.

Prudential Standard Life Equitable Life

2010-11 2009-10 2010-11 2009-10 2010-11 2009-10

£000’s £000’s £000’s £000’s £000’s £000’s

Value at 1 April 3,906 3,265 2,082 1,586 1,222 1,195

Income Contributions Received 1,198 760 183 160 10 11 Transfer Values Received 65 40 3 0 Interest & bonuses 46 30 0 58 139

Total 1,309 830 183 163 68 150

Expenditure Retirement Benefits Paid (762) (255) (357) (105) (143) (119) Transfer Values Paid (16) (33) (8) (11) (3) Refunds of Contributions (37) (16) 0 0

Total (815) (304) (357) (113) (154) (122)

Change in Market Value (10) 115 150 446 0 (1)

Value at 31 March 4,390 3,906 2,058 2,082 1,136 1,222




15) Related Party Transactions 2010-11 2009-10 £000’s £000’s

Transactions between the KCC Pension Fund and Kent County Council

- Transactions between the KCC Pension Fund and Kent County Council, in respect of Pensions administration costs, investments monitoring, legal and other services. 2,531 2,647

- in respect of cash held by KCC owing to the Pension Fund 1,580 55,325

- In respect of interest received on cash deposits 89 1,259

There were no related party transactions with members or senior officers.

16) Investment Commitments

As at 31 March 2011 the Pension Fund had a future commitment to invest in the following Funds:

Fund Total Commitment Invested Outstanding

YFM Private Equity Fund £4m £3.2m £0.8m

Aurora European Property Fund £30.1m £30.84m £150k (€35m) (€34.83m) (€170k)

Partners Group £75m £14.7m £60.3m

HarbourVest £60m £1.6m £58.4m





17) Stock Lending

In April 2010 the Pension Fund resumed the stock lending programme with the fund’s Custodian JP Morgan.

The amount of securities on loan at year end, analysed by asset class and a description of the collateral is set out in the table below.

Loan Type Market Value Collateral Value Collateral type £000’s £000’s

Equities 21,198 22,500 Securities

Sovereigns – Euro 4,566 4,782 Securities

Sovereigns – Sterling 3,982 4,081 Securities

29,746 31,363

18) Cash Balances

With effect from 1 July 2010 the Pension Fund cash which is not required on a day to day basis to pay benefits or administrative expenses of the Pension Fund has been invested separately from that of KCC. This surplus cash is invested in the RBS liquidity account and JP Morgan Sterling Liquidity MMF. The remaining cash is split between the Investment Fund Managers, who hold it in the JP Morgan Sterling Liquidity MMF until required.

19) Investment Performance

- The County Council uses The WM Company investment performance service which in conjunction with CIPFA and the Society of County Treasurers produces local authority statistics.

- The rates are expressed as rates of return and the statistical measure of performance enables valid comparisons to be made between individual funds and against the aggregate performance (median) of all local authority funds participating in the service.

- The property portfolio is subject to an independent review of performance by the Investment Property Databank.





20) Financial Instruments

The investments disclosed in the Balance Sheet are made up of the following categories of financial instruments:

Current 31 Mar 2011 31 Mar 2010

£000’s £000’s

Creditors

- Investment Creditors 0 3,703

- Other Creditors 8,558 6,382

Total Financial Liabilities 8,558 10,085

Available-for-sale financial assets 2,893,785 2,576,873

Derivatives 0 151

Loans and receivables

- Investment debtors 5,057 5,715

- Other debtors 32,527 25,601

Cash and cash equivalents

- Held by Fund Managers 60,943 63,706

- Internally Managed 27,734 55,325

Total Financial Assets 3,020,046 2,727,371



Risk Management

The activities of the Kent Pension Fund (the Fund) expose it to a variety of financial risks:

In respect of its investments the Fund is specifically exposed to the following risks:

- Market risk – the possibility that financial loss might arise as the result of changes in such measures as interest rates and stock market movements.

- Credit risk – the possibility that other parties might fail to pay amounts due

- Liquidity risk – the possibility that the Fund might not have funds available to pay benefits

The over-riding risk to the Fund is a loss on financial investments which ultimately could mean the Fund could not pay benefits but more realistically that employer contribution rates would have to increase at the actuarial valuation.

There are a number of ways in which the Fund seeks to minimise potential adverse effects on the resources available to fund benefits:

Market Risk

Diversified asset allocation - the Fund invests in a range of asset classes on a global basis to help guard against sharp falls in value of a particular asset class. The Fund has a high allocation to Equities at around 70% and this is typical of local authority funds. It does mean that returns are highly correlated with equity markets.

Credit Risk

Diversification in manager selection - in appointing managers the Committee is looking for types of manager which combine well. No manager can succeed in all market conditions and the Fund diversifies risk by appointing a number of managers with different investment styles for each asset class. In the last 12 months the Fund has terminated the contract of an active manager and transferred the funds into a passive equity manager. It has also made an investment in an environmental fund and made a commitment to invest in a Private Equity fund and Infrastructure fund of funds.

With advice from Hymans Robertson, the Fund’s investment consultants, the Fund appoints specialist managers to manage each asset class and then monitors investment performance. Each manager’s performance is reviewed regularly and continued under-performance by managers will lead to their dismissal .

Liquidity Risk

With the exception of its property holdings the Fund’s monies are invested in investments which may be converted to cash at short notice. In addition the fund holds a minimum of £15million in call accounts and Money Market Funds to ensure funds are available to pay benefits.




Risk Management

Risk Controls

Failure of governance arrangements Committee meetings

Liaison with Chairman, Vice Chairman, spokesman

Advice from Legal & Democratic Services

Financial default by an employer Enforce Guarantee Bond arrangements

Review existing exposure

2010 Valuation Detailed timetable for process

Regular briefing for major employers

Review of actuarial service

Pension Fund Cash Management Segregated cash management policy

Quarterly monitoring reports

Investment advice Examine different options for investment advice

Investment under-performance & Investment Manager Complexity / Structure

Quarterly monitoring of managers

Update of Investment Strategy

Disaster recovery for pensions data Disaster recovery arrangements with Heywoods

Regular testing of arrangements

Recruitment & Retention of staff Ensure that both teams are properly resourced

Ongoing training & development of staff

Not meeting Pensions KPI’s Weekly reporting

Monthly reporting

Twice yearly reports to Committee

KCC data quality Close liaison with KCC Personnel & Development staff

Business Risk

Officers of Kent County Council formally review and update the Pensions Risk Register (Register). The Register was last reviewed in April 2011 and the Top 10 Risks for the Fund and the controls in place are set out below.



List of Employing Bodies

Scheduled Bodies

Local Authority and District Councils

Ashford Borough Council

Canterbury City Council

Dartford Borough Council

Dover District Council

Gravesham Borough Council

Kent County Council

Maidstone Borough Council

Medway Council

Sevenoaks District Council

Shepway District Council

Swale Borough Council

Thanet District Council

Tonbridge & Malling Borough Council

Tunbridge Wells Borough Council

Schools

Allington Primary School

All Souls County Primary School

Angley School

Archbishops CE School

Astor College of Arts

Astor of Hever School

Aycliffe CEP

Aylesford School

Barton Court Grammar School

Barton Junior School

Bennett Memorial School

Birchington CEP School

Borden Grammar School

Borough Green Primary School

Bredgar School

Brockhill Park School

Brookfield Junior School

Charles Dickens High School

Chatham Grammar School for Girls

Chatham Grammar School for Boys

Chaucer Technology School

Crockenhill Primary

Cranbrook School

Dane Court Grammar School

Dartford Grammar School for Girls

Ditton Infant School

Ditton CE Junior School

Dover Grammar School for Boys

Dover Grammar School for Girls

Downsview Infants School

East Borough Primary School

Five Acre Wood School

Folkestone School for Girls

Gateway Community Primary School

Gravesend Grammar School for Boys

Gravesend Grammar School for Girls

Greatstone County Primary School

Halfway House County Primary School

Harcourt County Primary School

Hartsdown Technology College

Herne Bay Junior School

Hextable School

High Firs Primary School

Highsted Grammar School

Hillview School for Girls

Holy Family RC Primary

Holy Trinity County Primary School, Dartford

Holy Trinity County Primary School, Gravesend





Further Education Colleges

Canterbury College

Hadlow College

Hilderstone College

K College

Mid Kent College

North West Kent College

Thanet College

Homewood School, Tenterden

Horton Kirby County Primary School

Howard School

Hundred of Hoo School

Hugh Christie School

John Wesley School

Judd School Tonbridge

King Ethelbert School

Malling School

Maplesden Noakes School, Maidstone

Mascalls School

Northfleet Technical College

Northfleet School for Girls

Oakwood Park Grammar School

Our Lady of Hartley RC Primary School

Parkway Primary

Pent Valley Secondary School

Queen Elizabeth Grammar School

Riverview Infants School

Riverview Junior School

Robert Napier School

Roseacre Junior School

Sandling CP

Shatter Locks Infants

Simon Langton Grammar School for Boys

Skinners School

Snodland County Primary School

St Anselm’s RC Comprehensive School

St Bartholomew County Primary School

St Botolphs County Primary School

St Edmund of Canterbury Comprehensive

St Francis County Primary School

St George’s School, Broadstairs

St George’s School, Gravesend

St Gregory’s Catholic Comprehensive

St Johns CEP School

St John RC Comprehensive

St Joseph RC Primary School

St Mary’s CEP

St Peter’s Aylesford

St Simon Stock School

Staplehurst School

Stella Maris RC Primary School

Sutton at Hone County Primary School

Thamesview School

The Norton Knatchbull

Thomas Aveling School

Tunbridge Wells Girls Grammar School

Valence Special School

West Minster CP Sheppey

White Cliffs Primary

Whitehill Primary School

Willesborough County Primary Junior School

Wilmington County Primary School

Wilmington Grammar School for Boys

Wilmington Grammar School for Girls

Wilmington Hall

Wrotham School




Other Scheduled Bodies

Ash Parish Council

Birchington Parish Council

Borough Green Parish Council

Broadstairs and St Peter’s Town Council

Chesterfield Parish Council

Cranbrook Parish Council

Darenth Parish Council

Deal Town Council

Ditton Parish Council

Dover Town Council

Downswood Parish Council

Eastry Parish Council

Edenbridge Town Council

EK Arms Length Management Organisation

EK Services (Thanet)

Eynsford Parish Council

Eythorne Parish Council

Farningham Parish Council

Faversham Town Council

Folkestone Town Council

Great Mongeham Parish Council

Hartley Parish Council

Hawkhurst Parish Council

Hawkinge Parish Council

Herne and Broomfield Parish Council

Horton Kirby and South Darenth Parish Council

Hythe Town Council

Kent and Essex Sea Fisheries Committee

Kent and Medway Fire and Rescue Authority

Kent Police Authority

Kent Probation

Kent Valuation Tribunal

Kings Hill Parish Council

Leigh Parish Council

Longfield and New Barn Parish Council

Lower Medway Internal Drainage Board

Margate Charter Trustees

Minster on Sea Parish Council

Otford Parish Council

Otham Parish Council

Pembury Parish Council

Ramsgate Town Council

River Stour Internal Drainage Board

Romney Marsh Levels Internal Drainage Board

Sandwich Town Council

Seal Parish Council

Sevenoaks Town Council

Snodland Town Council

Southborough Town Council

Staplehurst Parish Council

Stone Parish Council

Sturry Parish Council

Swanley Town Council

Swanscombe and Greenhithe Town Council

Tenterden Town Council

Thanet Joint Computer Committee

Upper Medway Internal Drainage Board

Westerham Parish Council

West Kingsdown Parish Council

Woodnesborough Parish Council





Academies

Amherst School Academy

Bishop of Rochester Academy

Brompton Academy

Canterbury Academy

Castle Community College Academy

Chatham House Grammar School Academy

Clarendon House Grammar School Academy

Cornwallis Academy

Dartford Grammar School For Boys Academy

Dover Christchurch Academy

Duke of York Military Academy

Folkestone Academy

Fort Pitt Grammar School Academy Trust

Fulston Manor School Academy

Hayesbrook High School for Boys Academy

Herne Bay High School Academy

Highstead Grammar School Academy

Highworth Grammar School Academy

Isle of Sheppey Academy

John Wallis Academy

Kemnal Academy Trust: Orchards Academy

Kemnal Academy Trust: Rainham School for Girls

Knole Academy

Leigh Technology Academy

Longfield Academy

Marlowe Academy

Marsh Academy

Meopham Community Academy

New Line Learning Academy

Rainham Mark Grammar School Academy

Rochester Grammar School For Girls Academy

Sandwich High School Academy

Sir Roger Manwood School Academy

Skinners Academy

Spires Academy

Strood Academy

St Stephens Junior School Academy

Tonbridge Grammar School For Girls Academy

Weald of Kent Grammar School Academy

Westlands Primary School Academy

Westlands School Academy

Wilmington Academy




Admitted Bodies

Community Admission Bodies

Active Life Limited

Ashford’s Future Company Ltd

Ashford Leisure Trust Limited

The Avenues Trust

Caldecott Community

Canterbury and Rochester Diocesan Council

Canterbury Archaeological Trust

Christchurch College, Canterbury

Connexions Partnership Kent & Medway

Folkestone and Dover Water Company

Gravesham Community Leisure

Hope (Kent) Limited

Hyde Housing Association

Invicta Telecare Limited

Kent College, Canterbury

Kent College, Pembury

Kent Community Housing Trust

Kent Music School

Knotley Hall School

Maidstone Housing Trust

Medway Community Living Services

Medway Housing Society

Mote House, Maidstone

Museum of Kent Life Trust

Orbit South Housing Association

Remade South East

Rochester Bridge Trust

Russet Homes

Sevenoaks Leisure Limited

Sevenoaks School

St Vincent’s School, Tankerton

Swale Housing Association

Thanet Archaeological Trust

Thanet Leisure Force

Tourism South East

Town & Country Group

University Of Kent

West Kent Housing Association

West Kent Water Company

Transferee Admission Bodies

ABM Catering Limited

APCOA Parking Limited

Avenues Trust Community Support Service

Brenwards Limited

Compass Group UK & Ireland

Fusion Lifestyle

Mitie PFI Limited

Mitie Cleaning & Support Services

Northgate Managed Services

Norwest Holst

Orchard Theatre Dartford Limited

Quadron Services Limited

Reliance Task Management

Shaw Healthcare (FM Services) Ltd




The Fund Profile –5 Year Summary

Financial 2006-07 2007-08 2008-09 2009-10 2010-11 £000’s £000’s £000’s £000’s £000’s

Contributions 189,989 200,932 218,955 224,380 229,688

Investment and other income 82,107 81,224 81,807 80,901 70,495

Sub Total 272,096 282,156 300,762 305,281 300,183

Benefits and other payments (142,862) (153,485) (164,558) (184,966) (187,042)

Total 129,234 128,671 136,204 120,315 113,141

31 March 31 March 31 March 31 March 31 March 2007 2008 2009 2010 2011 £000’s £000’s £000’s £000’s £000’s

Net Assets 2,573,640 2,489,098 2,075,687 2,885,463 3,202,442

Investments at Valuation 2,457,117 2,334,413 1,895,169 2,745,201 3,084,739

Membership 31 March 31 March 31 March 31 March 31 March 2007 2008 2009 2010 2011

Contributors 40,586 42,513 43,385 44,509 43,408

Pensioners 25,737 26,658 27,898 29,107 30,549

Deferred Pensioners 24,746 26,569 26,607 30,691 32,618



Appendix 1: Major UK & Overseas Equity & Unit Trust Holdings by Value

As At 31 March 2011

£000’s

United Kingdom

Invesco Perpetual Income Fund 355,861

MPF UK Equity Index Sub-Fund 245,009

BG Group 32,764

Vodaphone Group 30,615

Royal Dutch Shell 27,463

Anglo American Plc 26,960

Rio Tinto 24,256

Unilever Plc 22,281

HSBC Holdings 19,728

AstraZeneca 19,719

BP Amoco 19,563

Legal & General 15,463

Prudential 13,553

Standard Chartered 12,033

Lloyds TSB Group Plc 11,738

Carnival Plc 11,425

Schroder Recovery Fund Income 11,392

Centrica 10,853

Carillion 10,644

Spirax-Sarco 10,636

£000’s

North America

Oracle 13,604

Altria Group Inc 13,455

Stericycle 12,217

Apache 11,688

Apple 9,200

Progressive Cp 8,786

Praxair 7,305

O’Reilly Automotive 7,269

Pepsico Inc 7,232

EOG Resources 7,141

Japan

Baillie Gifford Japanese Smaller Cos Fund 4,962

Mitsui & Co Ltd 4,093

Canon Inc 3,564

Japan Tobacco 3,438

Inpex Holdings 3,092

SMC Corporation 2,947

Olympus 2,729

Fast Retailing 2,194

Komatsu 2,173

Mitsui Sumitomo Insurance 1,779




Appendix 1: Major UK & Overseas Equity & Unit Trust Holdings by Value

£000’s

Europe

Nestle 13,284

Svenskahandelsbank 12,276

Groupe Bruxelles 11,667

Investor “B” 11,363

Total 9,507

Roche Holdings 8,052

Atlas Copco 7,748

Heineken 6,378

Celesio 5,364

Essilor 5,361

Pacific/Other

MPF International Equity 292,691

GMO Developed World Equity Investment Fund 185,559

Schroder GAV Unit Trust 149,993

Goldman Sachs Sterling Credit Fund 134,556

Goldman Sachs Global Corporate Fund 71,288

Impax Environmental Fund 26,877

OGX Petroleo On 9,872

Partners Group 9,499

Itau Unibanco 7,142

TKI Garanti Bksi 6,862

Vale Sa 6,494

Samsung Electronics 6,254



as at 31 March 2011

Location Market Value £

Type of Property

Unit 1/13 Boyatt Wood Industrial Estate, Parham Drive, Eastleigh 3,150,456 Industrial

Otterspool Way, Watford 2,650,384 IndustrialUnits 1/10 Stuart Close, Penarth Road, Cardiff 4,055,252 IndustrialUnits 6/13 Hawksworth Trading Estate, Bridgewater Close, Swindon

4,005,187 Industrial

Capital Interchange, Brentford 7,501,087 IndustrialKings Park Units 100 and 200, Trafford Park, Manchester 6,711,692 IndustrialKings Park Units 300 and 400 , Trafford Park, Manchester 4,928,382 Industrial49/59 Battersea Park Road, London SW8 16,252,354 IndustrialHertsmere Industrial Estate, Borehamwood 12,251,775 Industrial42-50 Grey Street, Newcastle 4,784,241 OfficeThe Tramshed, Walcot Street, Bath 4,255,157 Office1 Castle Terrace, Edinburgh 5,657,145 Office14-15 Conduit Street, London W1 14,349,975 Office3-5 Charing Cross Road, London W1 19,164,179 Office22 St Ann’s Road, Harrow 958,209 Retail Store24 St Ann’s Road, Harrow 1,765,122 Retail Store17-19 Cornhill & 1 Tavern St, Ipswich 3,530,244 Retail Store21-23 Bridlesmith Gate, Nottingham 7,724,556 Retail StoreNational House, 34/36 St Ann's Street and 42/46 Cross Street, Manchester

7,450,459 Retail Store

Queens Drive, Nottingham 4,410,295 Retail/WarehouseBurton Road, Kendal, Cumbria 6,843,560 Retail/WarehouseBarker Road, Maidstone, Kent 5,829,700 Retail/Warehouse217a Bath Road, Slough 10,392,073 Retail/WarehouseWenvoe Retail Park, Culverhouse Cross, Cardiff 11,152,469 Retail/Warehouse102 - 114 Wardour Street London 10,590,731 Retail/Warehouse63 George Street, Edinburgh 10,590,117 Retail/OfficeHenderson UK Shopping Centre Fund 4,217,383 Property FundLegal & General Leisure Fund 7,130,547 Property FundING Central London Fund 746,886 Property FundUnite Student Accommodation Fund 8,320,467 Property FundFalcon Unit Trust 7,103,250 Property FundHercules Property Unit Trust 10,764,792 Property FundLothbury 7,577,305 Property FundQuercus 7,778,804 Property FundWest End of London Property Unit Trust 9,049,212 Property FundAirport Industrial Property Unit Trust 9,186,475 Property FundAurora European Property Fund 17,740,519 Property Fund

Total Market Value 280,570,441

Appendix 2: Property Valuation




Appendix 2: Property ValuationDuring the year the following transactions were carried out within the property portfolio:

Acquisitions Market Value £

Type of Property

63 George Street, Edinburgh 10,669,790 Retail/Office

Units 300 and 400 Kings Park, Trafford Park, Manchester 5,039,029 Industrial

DisposalsThere were no disposals during 2010-11

Kent County Council Pension Section

Fund benefits and contributions

Pat Luscombe (Pensions Manager)

2nd Floor

Brenchley House

Week Street

Maidstone

Kent

ME14 1RF

Tel: 0844 875 3488

Fax: 01622 694590

email: [email protected]

Web: www.kentpensionfund.co.uk

Kent County Council Corporate Finance

Fund accounting and investment

Nick Vickers (Head of Financial Services)

Sessions House

County Hall

Maidstone

Kent

ME14 1XQ

Tel: 01622 694603

Fax: 01622 673806

email: [email protected]

County Print & Design 2 01622 605368 22609/TRH

report and accounts 2011 · 2015. 5. 8. · report & accounts 2011 report & accounts 2011 4...

Documents