Pension Sub-committee And Pension Board - 17/11/2008

At a MEETING of the SUPERANNUATION INVESTMENT SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE held at Dundee on 17th November, 2008.

APPENDIX I

Present:-

BAILIES

COUNCILLORS

Bailie George REGAN, Convener, in the Chair.

Unless marked thus * all items stand delegated.

I MINUTE OF MEETING OF 18TH AUGUST, 2008

The minute of meeting of the Superannuation Investment Sub-Committee of 18th August, 2008 was submitted and approved.

II TIMETABLE OF MEETINGS FOR 2009

There was submitted Report No 554-2008 by the Head of Finance detailing a programme of meetings for 2009.

The Sub-Committee agreed the programme of meetings for 2009 as noted below:-

III SOCIALLY RESPONSIBLE INVESTMENT - SIX MONTHLY REPORT

There was submitted Report No 555-2008 by the Head of Finance reviewing progress by Fund Managers regarding the positive engagement strategy approved by the Sub-Committee on 23rd February, 2000.

The Sub-Committee noted the information contained within the report with regard to the activities of the Fund Managers during the six month period ended 30th September, 2008.

IV REVIEW OF APPROACH TO SOCIALLY RESPONSIBLE INVESTING

There was submitted Report No 556-2008 by the Head of Finance reviewing the Fund's current policy on Socially Responsible Investing and the introduction of a revised policy.

The Sub-Committee agreed to approve the revised policy as outlined in Appendix 1 of the report.

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.

V TAYSIDE SUPERANNUATION FUNDS

(a) PERFORMANCE SUMMARIES

There was submitted Report No 559-2008 by the Head of Finance reviewing the investment performance of the Main Fund's four Fund Managers (excluding Property) for the quarter to 30th September, 2008 and considering the performance of the Transport Fund which shared two of those Managers.

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 560-2008 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 September, 2008 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 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 561-2008 by the Head of Finance reviewing the investment activities of the Main Fund's five Fund Managers for the quarter to 30th September, 2008. The Transport Fund shared 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 therein with regard to the activities of the Tayside Superannuation Fund and Tayside Transport Superannuation Fund and their Fund Managers.

(d) QUARTERLY FUNDING REPORT

The Sub-Committee noted that as the actuary, Barnett Waddingham was currently finalising the full triennial valuation results, the quarterly funding report had not been prepared.

VI REVIEW OF ALLIANCE BERNSTEIN

There was submitted Report No 557-2008 by the Head of Finance reviewing the position of Alliance Bernstein given recent performance which had been significantly below benchmark.

The Sub-Committee agreed to specifically consider Alliance Bernstein's performance each quarter over the forthcoming year to establish the prospects for improvement or the need for change.

VII SECURITIES LENDING

There was submitted Report No 558-2008 by the Head of Finance reviewing the position of the Fund regarding securities lending.

The Sub-Committee approved that the current suspension of the securities lending programme be continued for an indefinite period.

VIII REVIEW OF PERFORMANCE

Geoff Singleton and David OHara of Hymans Robertson spoke to their review on the Fund's performance over the past year.

The presentation covered the performance of both Funds and the five individual managers. It was noted that overall the Funds had performed reasonably well considering market volatility over the past few months.

The Convener thanked the speakers for their presentation.

IX PRESENTATION

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

They informed the Sub-Committee of the Fund's last quarter performance which was robust despite a volatile market. They outlined strategies to protect the fund in the current economic climate which would include reviewing the portfolio and a reduction in assets exposed to market conditions.

It was hoped that the Fund would progress despite poor market predictions for the fourth quarter.

The speakers were thanked for their attendance by the Convener.

George REGAN, Convener.