Decisions

This is an amendment to the current rate relief policy to remove some redundant paragraphs and to add new rules for claiming relief for rural businesses, local newspapers and Enterprise Zone Relief.

The Cabinet Member agrees that the Council’s Policy is amended in line with the recommendations set out in Appendix C in the report.

The Investment Manager presented the report.

She reminded Members that the Fund’s accounts formed part of Bath and North East Somerset Council’s accounts, and so would be presented to the Council’s Corporate Audit Committee for approval. Members were therefore invited merely to note the accounts.

The Fund’s assets had increased by £620m over the year because of the rise in the market value of the assets. Management fees had increased because of the rise in the value of the assets. Members asked whether there were alternatives to performance-based managers’ fees. The Investment Manager replied that in the past the Fund had put mandates out to tender on the basis of flat fees, but invariably they would have been more expensive than fee structures related to ‘assets under management’ or performance-based fees, because managers structure the flat fee to protect their income in falling markets . A Member suggested that performance-based fees gave managers an incentive to maximise returns to the Fund. A Member asked whether a ceiling was set on manager fees. The Investment Manager replied thatthere are claw-back arrangements with some managers and in the case of closed end private asset funds such as Partners, fees are only payable when the assets they managed are sold and profits are realised.

RESOLVED to note the draft statement of accounts for the year to 31 March 2017 for audit.