Pension Sub-committee And Pension Board - 21/02/2001

At a MEETING of the SUPERANNUATION INVESTMENT SUB-COMMITTEE of the FINANCE COMMITTEE held at Dundee on Wednesday, 21st February 2001.

Present:-

Councillors

George Regan

Jill Shimi (substituting for Councillor Julia Sturrock)

George de Gernier (substituting for Councillor John Letford)

Willie Sawers

Dave Beattie (substituting for Councillor John Corrigan)

Bruce Mackie

In attendance:-

Mr Willie Gowans, Tayside Full-Time Trade Union Officers' Group

Councillor Regan, Convener, in the Chair.

Unless marked thus * all items stand delegated.

The minute of meeting of this Sub-Committee of 19th December 2000 was noted

I MATTER ARISING

COSLA TRAINING INITIATIVE FOR MEMBERS OF PENSION FUND COMMITTEES 2ND MARCH 2001: EDINBURGH

Further to Article II of the minute of meeting of 19th December 2000, the Convener asked that any further applications to attend be submitted to the Director of Finance by Friday, 23rd February 2001.

II PROPOSED TIMETABLE OF MEETINGS FOR 2001/2002

There was submitted Report No. 104-2001 by the Director of Finance introducing a suggested programme of meetings for the Superannuation Investment Sub-Committee to cover investment performance and issues arising in the financial year 2001/2002.

The Sub-Committee agreed to the following programme of meetings:-

All meetings to commence at 11.30 a.m. unless otherwise advised.

In addition to the above, members were reminded that the next meeting will take place on 23rd May 2001.

III COSLA PENSION FUND TRUSTEE SEMINAR

The Sub-Committee noted that the Director of Finance had been asked to make a presentation at the above Seminar to be held in Edinburgh on 2nd March 2001.

The Sub-Committee resolved under Section 50(a)(4) of the Local Government (Scotland) Act 1973 that the public and press be excluded from the meeting in order that the undernoted items of business may be considered in private on the grounds that they involved the likely disclosure of exempt information as defined in paragraphs 4, 6 and 11 of Part I of Schedule 7(a) of the Act

IV STATEMENT OF INVESTMENT PRINCIPLES: ANNUAL REVIEW

There was submitted Report No. 105-2001 by the Director of Finance reviewing Statements of Investment Principles for the Tayside Superannuation Fund and the Tayside Transport Superannuation Fund.

The Sub-Committee were asked to note the information within the report and to approve no change to the Statements of Investment Principles for both the Tayside Superannuation Fund and the Tayside Transport Superannuation Fund.

There were tabled the Statements of Investment Principles for both the Tayside Superannuation Fund and the Tayside Transport Superannuation Fund approved by the Superannuation Investment Sub-Committee on 23rd February 2000 (Article VI refers)

The Sub-Committee agreed to defer this item to the next meeting to allow members to read the Statements tabled.

V TAYSIDE TRANSPORT SUPERANNUATION FUND

(a) There was submitted Report No. 126-2001 by the Director of Finance relating to W M Performance summaries for both the quarter and the year to 31st December 2000.

(b) There was submitted Report No. 116-2001 by the Director of Finance summarising the portfolio distribution along with the investment and transaction activities for the quarter 1st October to 31st December 2000.

The Sub-Committee noted the information contained herein with regard to the performance of the Transport Fund managed by Schroders Investment Management Limited.

VI TAYSIDE SUPERANNUATION FUND

(a) There was submitted Report No. 127-2001 by the Director of Finance relating to W M Performance summaries for both the quarter and the year to 31st December 2000.

(b) There was submitted Report No. 128-2001 by the Director of Finance relating to Schroder Property Investment Management Limited's performance for both the quarter and the year to 31st December 2000.

(c) There was submitted Report No. 115-2001 by the Director of Finance summarising the portfolio distribution along with the investment and transaction activities for the quarter 1st October to 31st December 2000.

The Sub-Committee noted that all three Fund Managers had out-performed the WM index for the quarter to 31st December 2000. Two of the three Fund Managers had also out-performed the index for the year to 31st December 2000 whilst the third Fund Manager had slightly under-performed the WM index for the year to 31st December 2000.

VII PRESENTATION

 

Mr John Carson and Mr Colin Melvin of Baillie Gifford gave a presentation reviewing the year 2000 performance and Socially Responsible Investment (SRI) respectively. Last year had been disappointing and the speakers outlined the main reasons for the under-performance. Whilst the three year and five year returns were both ahead of their respective benchmarks, there was a need to do better this year.

 

Colin Melvin outlined the Baillie Gifford approach to Socially Responsible Investment which was to encourage engagement with companies in order to bring about change. He would continue to report back to the Director of Finance. Baillie Gifford were members of the SRI Forum.

 

The speakers answered questions and were thanked by the Convener on behalf of the Sub-Committee.

 

 

 

 

GEORGE REGAN, Convener.