Pension Sub-committee And Pension Board - 03/09/2007

At a MEETING of the SUPERANNUATION INVESTMENT SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE held at Dundee on 3rd September, 2007.

Present:-

Bailie Willie SAWERS

COUNCILLORS

Joe MORROW

Kevin KEENAN

Ken LYNN

Apologies were noted from Bailies Regan and Wallace.

Councillor Joe MORROW, Convener, in the Chair.

Unless marked thus * all items stand delegated.

I MINUTE OF MEETING OF 25TH JUNE, 2007

The minute of meeting of the Superannuation Investment Sub-Committee of 25th June, 2007 was submitted and approved.

II MATTERS ARISING

(i) TRAINING

Members were advised that two training sessions would be arranged before December 2007 and the final session in the New Year. These sessions would cover the following topics:-

(i) Scheme Governance

(ii) Investment Classes

(iii) Investment Managers

The Convener thanked the Head of Finance for her assistance in arranging these training sessions. It was agreed that the Head of Finance liaise with members of the Sub-Committee directly to arrange a training timetable.

The Sub-Committee resolved under Section 50(A)(4) of the Local Government (Scotland) Act 1973 that the press and public be excluded from the meeting for the undernoted items of business 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 7A of the Act.

III TAYSIDE SUPERANNUATION FUNDS

(a) PERFORMANCE SUMMARIES

There was submitted Report No 429-2007 by the Head of Finance relating to Performance Summaries for the quarter, twelve months and three years to 30th June, 2007, which reviewed the investment performance of the Main Fund's four Fund Managers (excluding Property) for the quarter to 30th June, 2007. It also considered the performance of the Transport Fund which shares two of these managers, and compared investment performances of the Funds with the Funds' specific benchmarks which consisted of various stock market indices.

Members noted that most managers continued to perform ahead of the benchmark and that funds were stable in the Equity markets.

The Sub-Committee noted the information contained therein with regard to the performance of the Tayside Superannuation Fund and Tayside Transport Superannuation Fund and their Fund Managers.

(b) PERFORMANCE SUMMARY (PROPERTY PORTFOLIO)

There was submitted Report No 430-2007 by the Head of Finance relating to Schroder Property Investment Management Limited's performance for the quarter, twelve months and three years to 30th June, 2007, which reviewed the investment performance of the Property Portfolio managed by Schroder property Investment Management Limited for the quarter to 30th June, 2007 and for the twelve month period to the same date.

The report also compared investment performances with an appropriate benchmark, the HSBC/IPD Pooled Property All Balanced Funds Median, from 1st April, 2004.

Members noted that the total portfolio out-performed the index for the quarter, year and three years and exceeded its target with mixed performances across the range of individual trusts.

The Sub-Committee noted the information contained herein with regard to the performance of the Property Portfolio managed by Schroder Property Investment Management Limited.

There was submitted Report No 431-2007 by the Head of Finance summarising investments and transactions during the period 1st April to 30th June, 2007, which reviewed the investment activities of the Main Fund's five Fund Managers for the quarter to 30th June, 2007. The Transport Fund shared three of these managers and their transactions were also included.

The report further summarised the transactions of each Fund Manager and showed the market values of the Main and Transport Fund.

The Sub-Committee noted the information contained therein with regard to the activities of the Tayside Superannuation Fund and Tayside Transport Superannuation Fund and their Fund Managers.

(d) QUARTERLY FUNDING REPORT

There was submitted Report No 432-2007 by the Head of Finance which considered a report by Barnett Waddington which reviewed the current funding level of the Funds as assessed by Barnett Waddingham, the Fund Actuary.

Members noted that the funding level position had improved for the Main Fund and the Transport Fund since the last full valuation.

The Sub-Committee noted the report by Barnett Waddingham.

IV PRESENTATION

Graeme Rutter and Tony Doherty of Schroder Property gave a short presentation.

Graeme advised members the portfolio was continuing to out-perform the benchmark each quarter and that the portfolio structure was well placed for future out-performance. It was anticipated that managers would look to crystallise profits in the retail warehouse sector. Members noted that investment was being made in the student accommodation market which was drawing a 10% return.

Tony advised members of future strategies including exposure to opportunity funds whilst maintaining a minimal exposure to cash, and investigating further the portfolio's remit regarding Europe. Thereafter, members were given the opportunity to ask questions regarding the Fund, and Tony explained in further detail how opportunity funds operated.

The speakers were thanked for their attendance by the Convener.

Joe MORROW, Convener.

APPENDIX II

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