Pension Sub-committee And Pension Board - 18/08/2008

At a MEETING of the SUPERANNUATION INVESTMENT SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE held at Dundee on 18th August, 2008.

APPENDIX II

Present:-

Bailie Willie SAWERS

COUNCILLORS

Councillor Joe MORROW, Convener, in the Chair.

Unless marked thus * all items stand delegated.

I MINUTE OF MEETING OF 19TH MAY, 2008

The minute of meeting of the Superannuation Investment Sub-Committee of 19th May, 2008 was submitted and approved.

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 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 7A of the Act.

II TAYSIDE SUPERANNUATION FUNDS

(a) PERFORMANCE SUMMARIES

There was submitted Report No 396-2008 by the Head of Finance reviewing performance of the Main four Fund Managers (excluding Property) for the quarter to 30th June, 2008, considering the performance of the Transport Fund which shares two of these Managers.

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

The Sub-Committee noted the information contained herein 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 395-2008 by the Head of Finance reviewing the investment performance of the Property Portfolio managed by Schroder Property Investment Management Ltd, for the quarter to 30th June, 2008 and for the twelve month period to the same date.

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

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

(c) SUMMARIES OF INVESTMENTS AND TRANSACTIONS

There was submitted Report No 398-2008 by the Head of Finance reviewing the investment activities of the Main Fund's five Fund Managers for the quarter to 30th June, 2008. The Transport Fund shares three of these Managers and their transactions were included.

The report 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 herein 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 397-2008 by the Head of Finance.

This report 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.

III PRESENTATION

Nick Birchall and Andy Howlse of Fidelity gave a short presentation. Nick advised members that the Performance Objective of Fidelity was to out-perform the Performance Benchmark by 1.75% and that stock selection in UK equities and also a Japan and Emerging Markets were having a positive performance impact. Their defensive investment style had proved to be correct.

Thereafter, Andy Howlse advised that bonds had not performed as well as anticipated, however, index linked gilts had produced strong absolute performance.

The speakers were thanked for their attendance by the Convener.

Joe MORROW, Convener.