Pension Sub-committee And Pension Board - 22/05/2002

At a MEETING of the SUPERANNUATION INVESTMENT SUB-COMMITTEE OF THE FINANCE COMMITTEE held at Dundee onWednesday, 22nd May, 2002.

Present:-

COUNCILLORS

In Attendance:-

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

Councillor REGAN, Convener, in the Chair.

The minute of meeting of this Sub-Committee of 20th February, 2002 was noted.

Unless marked thus * all items stand delegated.

I SEMINAR

There was submitted Agenda Note AN83-2002 advising that the LGC Public Sector Pension Fund Investment Seminar would take place in Southampton on 5th and 6th September, 2002 at a cost of 650 per delegate excluding travel and subsistence. The Committee authorised the attendance of Councillor Mackie.

In addition it was remitted to the Director of Finance to contact the LGC requesting that for future years, consideration be given to holding the seminar in a location more accessible to all public sector representatives.

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 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.

II WM PERFORMANCE MEASUREMENT - 2001 ANNUAL REVIEW

There was submitted Report No 300-2002 by the Director of Finance detailing the results, as calculated by the WM Company, achieved in 2001 by each of the balanced Fund Managers employed by the Council to manage the Tayside Superannuation Fund and the Tayside Transport Superannuation Fund.

The Sub-Committee noted the analysis of the performance of the Fund Managers as calculated by the WM Company.

III TAYSIDE SUPERANNUATION FUND

(a) WM PERFORMANCE SUMMARIES (BALANCED PORTFOLIOS)

There was submitted Report No 301-2002 by the Director of Finance relating to WM Performance Summaries for both the quarter and the year to 31st March, 2002.

The Sub-Committee noted that two out of three Fund Managers had out performed the WM Index for the quarter to 31st March, 2002. All three Fund Managers had out-performed the Index for the year to 31st March, 2002.

(b) PERFORMANCE SUMMARY (PROPERTY PORTFOLIO)

There was submitted Report No 302-2002 by the Director of Finance relating to Schroder Property Investment Management Ltd performance for both the quarter and the year to 31st March, 2002.

The Sub-Committee noted the information contained in the above report which included the Investment Performance of the Property Portfolio managed by Schroder Property Investment Management Ltd for the quarter and year to 31st March, 2002.

(c) SUMMARY OF INVESTMENTS AND TRANSACTIONS

There was submitted Report No 466-2002 by the Director of Finance summarising investments and transactions during the period 1st January to 31st March, 2002.

The Sub-Committee noted the information contained in the report.

IV TAYSIDE TRANSPORT SUPERANNUATION FUND

(a) WM PERFORMANCE SUMMARIES

There was submitted Report No 302-2002 by the Director of Finance relating to WM Performance Summaries for both the quarter and year to 31st March, 2002.

The Sub-Committee noted the information contained in the report.

(b) SUMMARIES OF INVESTMENTS AND TRANSACTIONS

There was submitted Report No 467-2002 by the Director of Finance summarising Investments and Transactions during the period 1st January to 31st March, 2002.

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

V SOCIALLY RESPONSIBLE INVESTMENT - SIX MONTHLY REPORT

There was submitted Report No 304-2002 by the Director of Finance reviewing the implementation by the Fund Managers of the positive engagement strategy approved by the Sub-Committee on 23rd February, 2000.

The Committee noted the information detailed in the report with regard to the activities of the Fund Managers during the six month period to 31st March, 2002.

In addition it was remitted to the Director of Finance to write to the Fund Managers requesting information on their policy and views on Export Processing Zones, and in addition to pursue this matter through the Local Authorities Pension Funds (LAPF) organisation.

It was reported that the Convener had agreed that the undernoted items VI and VII be considered under Standing Order 52(3)(b) in view of the timescales involved.

VI COMMUNICATION WITH PENSIONERS FORUM

The Convener advised the Committee that he had received a request at a recent meeting with the Pensioners Forum that some information regarding the performance of the Fund be provided to them.

It was agreed that the Director of Finance should be remitted to prepare a summary of the quarterly meetings, in an appropriate format, and that this be issued to the Pensioners Forum and to all admitted/scheduled bodies. In addition, it was agreed that the Pensioners Forum be given an annual meeting to discuss the operation of the Tayside Superannuation Funds, similar to the Forum meetings that are held for the admitted/scheduled bodies.

VII UPDATE ON REVIEW OF THE SUPERANNUATION FUND

Reference was made to the minute of meeting of this Sub-Committee of 24th May, 2000 wherein it was agreed that Hymans Robertson be appointed as consultant to a review of the structure of the Fund and the appointment of a global custodian.

It was reported that in order to ensure that best value was being achieved, their offer to carry out this work was subjected to competitive tender.

The Committee noted the tenders received and agreed that Hymans Robertson be asked to conduct a full scale review (excluding liability modelling and including provision for one full day's meeting) at an estimated cost of 12,000.

VIII PRESENTATION

Messrs John Troiano, Managing Director (UK), Geoff Day, Account Manager and Nick Purves, Equity Manager, of Schroders Investment Management gave a brief presentation covering recent developments and performance of Schroders Investment Management, the projected outlook, policy changes and asset allocation, and future strategy in respect of the various funds managed by SIM.

After they had completed their presentation and answered questions from members of the Sub-Committee, they were thanked for their attendance and withdrew.

IX MEMBERS' TRAINING

It was agreed to postpone this item to the next meeting.

GEORGE REGAN, Convener.