Pension Sub-committee And Pension Board - 19/11/2007

At a MEETING of the SUPERANNUATION INVESTMENT SUB-COMMITTEE OF THE FINANCE COMMITTEE held at Dundee on 19th November, 2007.

APPENDIX I

Present:-

Bailie George REGAN

COUNCILLORS

Joe MORROW

Kevin KEENAN

Apologies were noted from Bailies Sawers, Wallace and Councillor Lynn.

Councillor Joe MORROW, Convener, in the Chair.

Unless marked thus * all items stand delegated.

I MINUTE OF MEETING OF 3RD SEPTEMBER, 2007

The minute of meeting of the Superannuation Investment Sub-Committee of 3rd September, 2007 was submitted and approved.

II PROPOSED TIMETABLE OF MEETINGS FOR 2006/2007

Reference was made to Article III of the minute of meeting of this Committee on 21st February, 2007, whereby a timetable of meetings was agreed.

The Sub-Committee noted the following changes to dates previously agreed:-

(i) Monday, 18th February at 12 noon replaces Wednesday, 20th February at 11am;

(ii) Monday, 19th May at 12 noon replaces Wednesday, 21st May at 11am.

III SOCIALLY RESPONSIBLE INVESTMENT - SIX MONTHLY REPORT

There was submitted Report No 567-2007 by the Head of Finance reviewing the progress by the Fund Managers regarding the positive engagement strategy approved by the Sub-Committee on 23rd February, 2000.

The Sub-Committee noted the information contained within this report with regard to the activities of the Fund Managers during the six month period ended 30th September, 2007.

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 6 and 9 of Part I of Schedule 7(A) of the Act.

IV CUSTODY FEES

The Sub-Committee noted that negotiations had taken place with Northern Trust over the last few months to achieve a significant fee reduction without going through the expense of a full tendering exercise. This had led to a new agreement which would achieve savings on the previous charge of approximately 32,000 per annum. This would be effective from 1st October, 2007.

V TAYSIDE SUPERANNUATION FUNDS

(a) PERFORMANCE SUMMARIES

There was submitted Report No 568-2007 by the Head of Finance relating to Performance Summaries for the quarter, twelve months and three years to 30th September, 2007 reviewing the investment performance of the Main Fund's four Fund Managers (excluding Property) for the quarter to 30th September, 2007, and considering the performance of the Transport Fund which shares two of these managers.

The report also compared investment performances of the Funds with the Funds' specific benchmarks which consist of various stock market indices.

The Sub-Committee noted the content of the report 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 569-2007 by the Head of Finance relating to Schroder Property Investment Management Ltd's performance for the quarter, twelve months and three years to 30th September, 2007 reviewing the investment performance of the Property Portfolio managed by Schroder Property Investment Management Ltd, for the quarter to 30th September, 2007 and for the twelve month period to the same date, and comparing investment performances with an appropriate benchmark the HSBC/IPD Pooled Property All Balanced Funds Median from 1st April, 2004.

The Sub-Committee noted the content of the report with regard to the performance of the Property Portfolio managed by Schroder Property Investment Management Ltd.

There was submitted Report No 570-2007 by the Head of Finance summarising investments and transactions during the period 1st July to 30th September, 2007 reviewing the investment activities of the Main Fund's five Fund Managers for the quarter to 30th September, 2007. The Transport Fund shared three of these managers and their transactions were 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 within the report 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 571-2007 by the Head of Finance considering a report by Barnett Waddingham reviewing the current funding level of the Funds as assessed by Barnett Waddingham, the Fund Actuary.

The Sub-Committee noted the report by Barnett Waddingham.

VI REVIEW OF PERFORMANCE

Geoff Singleton and David O'Hara of Hymans Robertson reviewed the performance of the Funds and the individual managers over the year. Members noted that a significant review of Funds had been undertaken a year ago and that the Funds were performing well, although individual manager's performances were varied.

VII PRESENT

Frances Smyth and Graeme Griffiths of Alliance Bernstein gave a brief presentation to members on their portfolio and its performance in the previous quarter. Members noted that certain Funds had been exited in order to protect the overall value of the Fund, and that generally, performance had been stable. After a short question and answer session, the Convener expressed his thanks for this informative presentation.

Joe MORROW, Convener.

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