Pension Sub-committee And Pension Board - 22/08/2002
At a MEETING of the SUPERANNUATION INVESTMENT SUB-COMMITTEE OF THE FINANCE COMMITTEE held at Dundee on Thursday,22nd August 2002.
Present:-
COUNCILLORS
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George REGAN |
John CORRIGAN |
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Julia STURROCK |
Willie SAWERS |
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In Attendance:-
Mr W Gowans, Tayside Full-Time Trade Union Officers' Group and Mr R McKELVIE, TGWU.
Councillor REGAN, Convener, in the Chair.
The minute of meeting of this Sub-Committee of 22nd May 2002 was noted.
Unless marked thus * all items stand delegated.
I SOCIALLY RESPONSIBLE INVESTMENT UPDATE
There was submitted Report No 632-2002 by the Director of Finance updating the Sub-Committee on the issue of Export Processing Zones which was identified as a concern at the last meeting on 22nd May 2002. The individual responses from the Fund Managers were detailed in the report. Members noted that as the zones kept expanding, an estimated 27 million workers in 70 countries face concerns over health and safety conditions and labour rights eg union representation was often not allowed.
After discussion, the Sub-Committee agreed as follows:-
(a)to note the information contained in the report;
(b)to continue to raise the issue with Fund Managers;
(c)to contact other bodies eg the National Association of Pension Funds and the Local Authority Pension Fund Forum in order to bring this issue to the attention of others; and
(d)to contact CIPFA Scottish Branch Pension Fund Sub-Group to seek the inclusion of this item on a future agenda.
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 TAYSIDE SUPERANNUATION FUND
(a) WM PERFORMANCE summaries (BALANCE PORTFOLIOS)
There was submitted Report No 633-2002 by the Director of Finance relating to WM Performance Summaries for both the quarter and the year to 30th June 2002.
The Sub-Committee noted that one of the three Fund Managers had slightly out-performed the WM Index for the quarter to 30th June 2002 whilst the other two Fund Managers had slightly under-performed the Index. All three Fund Managers had out-performed the Index for the year to 30th June 2002. Negative returns had applied for both the quarter and the year to 30th June 2002.
(b) PERFORMANCE SUMMARY (PROPERTY PORTFOLIO)
There was submitted Report No 634-2002 by the Director of Finance relating to Schroder Property Investment Management Limited performance for both the quarter and the year to 30th June 2002.
The Sub-Committee noted the information contained in the report which included the Investment Performance of the Property Portfolio managed by Schroder Property Investment Management Limited for the quarter and year to 30th June 2002.
(c) SUMMARY OF INVESTMENTS AND TRANSACTIONS
There was submitted Report No 635-2002 by the Director of Finance summarising investments and transactions during the period 1st April to 30th June 2002.
The Sub-Committee noted the information contained in the report.
The Director of Finance advised that an actuarial valuation was currently taking place - the outcome needed to be known by early January 2003 in order to build in any employer pension increases into next year's budgets.
III TAYSIDE TRANSPORT SUPERANNUATION FUND
(a) WM PERFORMANCE SUMMARIES
There was submitted Report No 636-2002 by the Director of Finance relating to WM Performance Summaries for both the quarter and year to 30th June 2002.
The Sub-Committee noted the information contained in the report.
(b) SUMMARIES OF INVESTMENTS AND TRANSACTIONS
There was submitted Report No 637-2002 by the Director of Finance summarising Investments and Transactions during the period 1st April to 30th June 2002.
The Sub-Committee noted the information contained therein with regard to the performance of the Transport Fund managed by Schroder Investment Management Limited.
IV REVIEW OF STRUCTURE OF FUND
The Corporate Finance Manager reported that Hymans Robertson, Consultants, had submitted a draft report and a meeting with the consultants had subsequently been held on 20th August. It had not been possible to produce a report in time for the meeting and therefore it was proposed to hold a special meeting of the Sub-Committee in September when the consultants' report and a report by the Director of Finance would be reviewed. Various options were being considered and a final decision was needed before the Local Council Elections in May next year.
The Sub-Committee noted the position and agreed to hold a special meeting in September/October.
V PRESENTATION
Mr Bill Hughes, Executive Director, Head of Research and Strategy, and Ms Jenny Buck, Fund Manager, Schroder Property Investment Management, gave a presentation covering principal property sectors, the current portfolio and performance record and current strategy.
The speakers answered questions and were thanked by the Convener.