2014Annual Meeting

The Credit Union is the friendly alternative to high street banks, doorstep loan sharks and other costly money lenders

APR Table Comparison

Financial Organisation Representative APR

Loan Amount Maximum Term

Repayment for £100

Wonga 5853% £1 to £400 41 days £135.04 over 28 daysLending Stream Loan 5387.80% £50 to £800 6 months £134 over 30 daysPayday UK Loan 3964% £100 to £1,000 37 days £129.95 over 30 daysPurple Payday Loan 3257.50% £50 to £1,000 45 days £125 over 31 daysCash Lady Pay Day Loan 2670% £80 to £300 6 months £129 over 28 daysUK Payday Today Pay Day Loan 2327.87% £100 to £1,000 28 days £129.95 over 28 daysQuick Quid Payday Loan 1999% £100 to £1,000 3 months £129.50 over 31 daysSunny.co.uk Flexible Credit 1971% £100 to £1,000 5 months £127.06 over 28 daysCashhub.co.uk Payday Loan 1734% £80 to £500 30 days £125 over 28 daysPayday Lady.co.uk Payday Loan 1734% £50 to £500 30 days £125 over 28 daysCash Cow Now Payday Loan 1737% £100 to £1,000 31 days £125 over 31 daysPayday Pig Payday Loan 1737% £100 to £1,000 31 days £125 over 31 daysQuick Quid Flex Credit 1362% £100 to £1,000 10 months £123.49 over 30 daysPounds to Pocket 885% £200 to £2,000 6 months -Provident Personal Credit 272% £100 to £500 52 weeks £122.67 over 28 days

Some Pay Day Lenders apply a Transmission Fee/Charge for the loan. BDCU doesn’t!(Many high street banks do not lend under £1,000 thus financially excluding customers – Credit Unions in the UK help customers where they can)

About Credit Unions

Started in Germany in 1852

Over 57,000 Credit Unions in over 100 countries the World serving 208 million people

They serve approximately 190 million people worldwide in the Americas, Europe, Africa and Asia

Worth approximately $1.5 Trillion

75% of people in Ireland bank with credit unions

46% of people in Canada bank with credit unions

44% people in USA bank with credit unions

The biggest credit union in the world is the Navy Federal Credit Union, a US credit union and it is worth approximately $50 Billion in assets.

UK Market •Approximately 370 credit unions in Great Britain•Over 1 million savers•Total assets worth over £1 billion•More than £600 million in outstanding loans to members•Only 2% of the population use Credit Unions

What is a Credit Union?• We are an ethical savings and loans company

run by and for people who live or work within Bradford District.

• We’re a friendly alternative to high street banks, doorstep loan sharks and other costly money-lenders.

A bit of History• Started in in 1993 as Council Credit Union• Since 2003 open to anyone who lives or works in

Bradford District• Now have 4,800 + members (50% are Council

Employees)• New credit union collection/information points

opening up in communities all across Bradford District [20] (Community/Children Centres, Primary schools, Churches..)

Why are Credit Unions so good?• No Fat Cat Shareholders, we’re not for profit• Run by the members, for the members – democratic• Lower interest rates on loans• No hidden fees• Any surplus is given back to members as an annual

dividend payment• Financial health of members is our main priority• Locally based, helping the Bradford District Economy• Friendly service, you’re not just a number• Just as safe as a Bank

How a Credit Union works

Savings• Minimum £1 per week or £5 per month if you are unwaged• Minimum £3 per week or £13 per month if you are wagedKey features• Instant Access – Withdraw your money when you like

(customers are not credit scored for a savings account)• Flexible – Vary the amount you save• Convenient – Save via standing order, payroll or cash• Any DWP benefit can be paid in to the savings account• Safe – All savings are protected by the FSA Compensation

Scheme• Annual Dividend paid to all members• Children can save too with our new Junior Savers Account

Loans• £200 to £7,500 and paid back between 6 months

and 36 months (60 months for over £5000)• Loan decisions are based on affordabilityInterest Rates• £200 – £500 at 3% per month (42.6% APR)• £501 – £1,000 at 2% per month (26.8% APR) • £1,001 – £2,000 at 1.5% per month (19.5% APR)• £2,001 – £7,500 at 1% per month (12.7% APR)

Provident Personal Credit£500 over 12 months• pay back £17.50 a week• interest £410 - (272.2%) APR

total cost: £910

Bradford District Credit Union£500 over 12 months• pay back £14.48 a week (inc £3 a week savings)• interest £97 - (42.6% APR)

total cost: £597total in BDCU savings account: £156

How to join•Fill out a membership form•We need to check two forms of ID, one should have your signature on, one should have your address (we accept tenancy agreements if no passport /drivers licence)•Bring it in to Cheapside Branch/City Hall Branch or any Credit Union Collection Point•We then send you your membership card (Welcome Pack is available on line)•Or simply visit our website and apply on line

Children can join as well• Fill out a Junior Savers application form• All junior accounts linked to an adult trustee• No minimum savings amounts or annual fee

for Junior Savers• Savings only – No loans

What does it cost?In order to cover the costs of issuing statements

and sending you newsletters we charge each adult member £2 per year

Free Tenner– If you are an Incommunities/Affinity Sutton tenant, they will put £10 in your Credit Union account to help get your savings going (adults & children)

Current Products•Pre paid Visa Debit Card•Savings Account•Christmas Savings Account•Junior Savings Account•Affordable Loans *•Loyalty Loans *

*(Savers are able to apply for a loan after 4 weeks of membership)

New Services / Products

•New Branch at 25 Cheapside Bradford •New Website & Online Banking •Credit Union Expansion Project £38M•Automatic Lending Decisions •Social Media – Facebook/Twitter as well as advertising on the radio, newspapers, buses and at the Coral Windows Stadium

Credit Union Expansion Project•BDCU is part of 82 credit unions taking part in a £38 million DWP project that is aimed at supporting credit unions to become financially self sustainable and help the sector to grow.•Credit Unions to provide better services and products to the consumers in the form of 24hr telephone banking, online services, free marketing, Current Accounts, Cash ISAs , Budgeting Accounts, Automated Lending Decisions and much more.

Collection PointsCanterbury Children’s Centre Cottingley Cornerstone CentreReevey Hill Children’s Centre Parklands Children CentreTrinity All Saints Primary School Sue Belcher Community CentreSt. Edmunds’s Children Centre Holme Christian CentreThe Edge Project HCC Eccleshill Mechanics InstituteLidget Green Children’s Centre Ingrow Primary SchoolSt. Stephens Church Our lady of Victories Primary SchoolChurches Together In Ilkley

Information Points

•Rockwell Centre - Bradford•Gateway Community Centre – Bradford•Windhill Community Centre – Shipley•Owlet Children & Family Centre – Shipley•Low Fold Children and Family Centre - Keighley

Branches •City Hall , Centenary Square, Bradford BD1 1HY•25-27 Cheapside Office, opposite Midland Hotel, Bradford BD1 4HR

Council Kiosks•Britannia House , Hall Ings, Bradford BD1 1HX•Manningham One stop Centre, Carlisle Road, Bradford BD8 8BB•Shipley Town Hall, Kirkgate, Shipley BD18 3EJ•Keighley Town Hall, Bow Street, Keighley BD21 3PA

Our Partners

www.bdcu.co.ukTel: 01274 434100

credit.union@bdcu.co.ukVisit us at City Hall or 25 Cheapside Bradford

Andrew BowkerChief Executive Officer

andrew.@bowker@bdcu.co.uk

Any Questions?

2014Annual Meeting

Rodney Barton – Director

West Yorkshire Pension FundHighlights 2013/14

Nationally• LGPS2014• Auto enrolmentLocally for WYPF• Completed 2013 Actuarial Valuation• Increase in pensioner members• Shared Service – Lincolnshire Pension Fund

West Yorkshire Pension FundFacts and figures 2014

Assets at 31 March 2014

• £10.4 billionEmployers in the fund

• 367Total membership

• 255,313

Value of WYPF assets

5.21

6.687.31 7.27

5.93

7.928.65 8.78

9.94 10.37

0

1

2

3

4

5

6

7

8

9

10

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Assets (£billion) to 31 March

Average annualised investment returns 2013/14

3 years 5 years 10 years 20 years 25 years

WYPF 6.7% 12.1% 8.4% 7.8% 8.7%

Average local authority fund 7.5% 12.7% 7.8% 7.2% 8.2%

WYPF fund accountYear ended 31 March

2014 £m 2013 £m 2012 £m 2011 £m

Contributions income 413.3 384.5 413.2 415.9

Benefits payable (461.1) (431.8) (450.2) (423.3)

Net additions (47.8) (47.3) (37.0) (7.4)

Investment + other income 262.5 250.5 233.1 202.8

Net overall income into fund 214.7 203.2 196.1 195.4

Change in market value of fund’s investments –increase/(decrease)

213.7 952.7 (62.0) 515.4

Net increase/(decrease) in fund’s assets 428.4 1,155.9 134.1 710.8

Opening net assets of the fund 9,940.3 8,784.4 8,650.3 7,939.5

Closing net assets of the fund 10,368.7 9,940.3 8,784.4 8,650.3

Membership data (at March 2014)

Active members 92,047Deferred pensioners 75,481Current pensioners 75,529Current pensionersOver 100 years old 36 +3

Over 90 years old 1,854 +236

Joiners and leavers in 2011/12Joining 16,552

Retiring 2,285

Other leavers 11,584

Pensions in payment

Average deferred pension

£1,294.41 a year

Average pension

£4,558.21 a year

Pensions increase April 2013

2.20%

Pension increase April 2014

2.70%

Examples of Key Performance Indicators – 2013/14

Lump sum and first instalment of pension paid within three days of retirement 98.07%

Employers’ satisfaction with the service provided 86.78%

Telephone calls answered within 20 seconds 98.66%

Visitors received in reception within 7 minutes 100%

Comparative management costs (2013/14)

18.82

26.88

0

5

10

15

20

25

30

Administration (rank = 11th)

WYPFLA average

9.21

100.17

0

20

40

60

80

100

120

Investment Management(rank = 2nd)

WYPFLA average

28.03

127.05

0

20

40

60

80

100

120

140

Total cost (rank = 1st)

WYPFLA average

Actuarial valuation

Actuarial valuation undertaken every three years by fund actuary

• 2007 89%

• 2010 93%

• 2013 96%

LGPS 2014

• New LGPS introduced from 1 April 2014

• Career average– Current scheme was final salary

• Normal retirement age = state pension age

• Contribution rates determined on actual pay– On notional full time pay in previous scheme

• Other scheme features stay largely the same

• LGPS 2014 – better governance and improved accountability in the LGPS – consultation

LGPS 2014 protections• Benefits built up before 1 April 2014 will be fully protected

– Based on final pay whenever you leave/retire

• Members who were over 55 on 1 April 2012 – underpin protection

– Benefits will be no less than they would have been if the current scheme had continued

• Pension = 1/49th of the pay pension contributions are deducted from each year

• 50/50 option – member pays half contribution rate for half their benefit

– Death and dependant benefits to remain the same

Summary• WYPF takes a long-term view

• Continued recovery after the credit crunch and banking crisis

– the fund’s value is now at an all time high

• WYPF financially very sound with exceptional positive cashflow of over £200 million a year

• External recognition of excellence

• Pensions in payment guaranteed, and not affected by movements in stockmarkets and investment returns, or changes to LGPS

• Protection for those within 10 years of retirement

InvestmentsGeneral Economic and Market SceneNovember 2014

Noel MillsIndependent Investment Advisor to WYPF

Economic Background to StockmarketsDuring 2013/14

• Weak global economic growth

• Falling commodity prices: fears of deflation

• Interest rates remain at record lows

• Unorthodox monetary policies continue

• Fiscal austerity continues

• European sovereign debt crisis eases but economy

stagnates

Movements in Major StockmarketsTotal Return % Change

Mar 13/Mar 14% Change

Mar 14/Sep 14

UK FTSE All Share + 8.8 + 1.2

World ex UK FTSE + 18.4 + 6.0

US FTSE + 22.2 + 6.2

Europe ex UK FTSE + 21.9 + 3.5

Japan FTSE + 18.4 + 11.4

Pacific ex Japan FTSE + 7.1 + 1.1

Emerging Markets FTSE + 4.0 + 8.4

Movements in Major Stockmarkets

40

60

80

100

120

140

160

Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14

UK US Japan Europe ex UK

Valuation of Major StockmarketsPrice Earnings Ratios

Mar 2013

Mar 2014

Sep2014

Average 1973-97

UK 15 14 14 14

World ex UK 16 17 17 16

US 16 17 17 14

Europe ex UK 16 18 17 13

Japan 25 23 15 37

Pacific ex Japan 14 14 14 17

Emerging Markets 12 13 13 n.a.

UK Stockmarket Total Returns by Market Capitalisation

% Change Mar 2013/Mar 2014

% Change Mar 2014/Sep 2014

FTSE All Share + 8.8 + 1.2

FTSE 100 + 6.7 + 2.3

FTSE 250 + 19.9 - 3.9

FTSE Small Cap + 20.4 - 0.8

UK StockmarketSector Returns 2013/14

-60% -40% -20% 0% 20% 40% 60%

General Retailers

Real Estate Investment

Leisure Goods

Financial Services

Telecommunications

Mining

Banks

Beverages

Food & Drink Retailers

Industrial Metals

Highest Returns Lowest Returns

Official Interest Rates Still at Record Lows

0

1

2

3

4

5

6

Mar-2008 Mar-2009 Mar-2010 Mar-2011 Mar-2012 Mar-2013 Mar-2014

UK US Eurozone Japan

Government Bond Yields Long-term Trend Reversal?

0

1

2

3

4

5

6

Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14

US UK Germany Japan

Eurozone Bond Yields Re-convergingSovereign Debt Crisis Easing

0

5

10

15

20

25

30

Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14

Greece Portugal Spain Italy Ireland Germany

Sterling Exchange Rates

0.80

0.90

1.00

1.10

1.20

1.30

1.40

1.50

08 09 10 11 12 13 14

£/Euro

110

130

150

170

190

210

08 09 10 11 12 13 14

£/Yen

1.101.201.301.401.501.601.701.801.902.002.10

08 09 10 11 12 13 14

£/US Dollar

Economic & Market Outlook• Global economic growth fragile and patchy

Strongest in US & UK; weakest in Europe and Japan

Growth moderating in emerging economies

• Deflation bigger danger than inflation

• Interest rates “lower for longer”: QE to continue?

• Bonds very expensive: yields likely to drift higher

• Equities fully priced on earnings projections

2014Annual Meeting

WYPF Investments

Mark StevensExternal Investment Adviser to WYPF

WYPF – Movement in Asset Distribution of Investment Portfolio

31.03.13 31.03.14

Equities 67.2 69.7

Fixed Interest 17.5 15.9

Alternatives(including Property) 11.4 10.9

Cash 3.9 3.4

100.0 100.0

Changes to Fund value over the Financial Year

Values in £ ‘000

Fund Value at 29/03/2013 £9,940,305

Capital Gain £213,710

Income £214,794

Fund Value at 31/03/2014 £10,368,809

Investment of Cash flow 2013-14

Bonds : No investment over the year

Equity:

• US Equity

• Other developed markets including Japan

• UK Equity

Alternatives:

• Private Equity: Infrastructure, Renewables

• Property

• Continued redemption and restructuring of Hedge Funds

Investment Strategy Adopted During 2013/14

£m

Equities 260Fixed Interest 0Alternatives: Currency funds 0Alternatives: Hedge funds -26Alternatives: Private Equity 10

Property 20

Cash 0

Total 264

Investment of New Money

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

% Weighting

Impact of allocatiing to US Equity over time

Market Impact During 2013/14

£m

Equities 244Fixed Interest -100Alternatives 36

Property 17

Cash 0

Total 197

Changes in the value of asset class from market movements

WYPF Investment Returns

WYPF 4.8%

Benchmark 5.5%

Local Authority Average 6.4%

Year to31 March 2014

Long Term Investment PerformanceAnnualised to 31/03/2014

Long Term Investment PerformanceAnnualised to 31/03/2014

Investment Strategy Going ForwardStrategic

• Healthy funding levels

• Customised benchmark review completed

• Hedge funds restructured, creation of listed alternatives portfolio

• Allocation to direct property

Tactical

• Renewable energy opportunities

• Tactical exposure to quoted property investments

• Private equity co-investment

Questions

Question 1

Are the staff on the Investment Team required to complete a declaration of interests, please?

If so, where can members see this information?

Question 2 & 3

Question 2:Can a pensioner invest money into the Yorkshire Pension and be paid interest annually. And in the event of his or her death the invested money paid to the Executor of his or her relatives.

Question 3: I am 60 now and don’t have a lot of Pension from WYPF as haven’t worked for them for long unfortunately. Is it possible I can pay more into pension fund to top-it up when I have it?

Question 4

Can you tell me what engagement the Fund is currently having with fossil fuel companies and the results of your engagement?

Question 5

What ethical or environmental/renewable energy investment funds have been considered in the last reporting year. Which have been approved for investment and which have been rejected and what were the grounds for acceptance or rejection.

What steps have WYPF investment advisory panel taken to engage with Glencore to improve its poor human and employee rights and environmental performance record?

Question 6

One of our largest shareholdings is in British and American Tobacco. This company trades (exclusively, I believe) in a product that kills people and results in a large cost to taxpayers through treatment for resulting illnesses in the NHS. I believe that other investments could be made in companies that do not have such negative aspects. Would the Fund agree to seek alternative investments?

Inequality is at a record level both across the world and in the UK. It is reported that the Chief Executive of a FTSE 100 company is paid (on average) over 600s time that of the lowest paid in the companies. As a major shareholder the Fund can use its influence as it can vote on the Renumeration Report of a company in which we have an investment. I propose that the Fund votes against any Renumeration Report where a company is not agreeing to a) pay all staff in the UK at the level of the living wage, orb) a pay increase for executives no greater than the average settlement agreed with the overall workforce in the company.Would the Fund agree to this proposal?

Question 7

Will WYPF avoid investing in companies providing good or services to settlements on occupied Palestinian land?

Lunch