Pension Sub-committee And Pension Board - 18/05/2009

At a MEETING of the SUPERANNUATION INVESTMENT SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE held at Dundee on 18th May, 2009.

APPENDIX

Present:-

BAILIES

COUNCILLORS

Also in attendance Rod McKAY, Unison.

Bailie Willie SAWERS, Convener, in the Chair.

Unless marked thus * all items stand delegated.

I APOLOGIES AND SUBSTITUES

It was reported that Councillor Andy Dawson had tendered his apologies.

II MINUTE OF MEETING OF 23RD FEBRUARY, 2009

The minute of meeting of the Superannuation Investment Sub-Committee of 23rd February, 2009 was submitted and approved.

III SOCIALLY RESPONSIBLE INVESTMENT - SIX MONTHLY REPORT

There was submitted Report No 258-2009 by the Head of Finance reviewing the progress by the Fund Managers regarding the positive engagement policy on Environmental, Social and Corporate Governance approved by the Sub-Committee on 17th November, 2008.

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 31st March, 2009.

IV GOVERNANCE COMPLIANCE STATEMENT

There was submitted Report No 259-2009 by the Head of Finance seeking approval for a Governance Policy Statement for Tayside Superannuation Funds.

The Sub-Committee approved the Governance Policy Statement shown at Appendix 1 to 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 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.

V TAYSIDE SUPERANNUATION FUNDS

(a) PERFORMANCE SUMMARIES

There was submitted a report by the Head of Finance relating to Performance Summaries for various periods to 31st March, 2009.

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 a report by the Head of Finance relating to Schroder Property Investment Management Ltd performance for the various period to 31st March, 2009.

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 a report by the Head of Finance summarising investments and transactions during the period 1st January to 31st March, 2009.

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 a report by the Head of Finance which considered a report by Barnett Waddingham.

The Sub-Committee noted the report by Barnett Waddingham.

VI REVIEW OF MAIN FUND

There was submitted a report by the Head of Finance which considered a report by Hymans Robertson.

The Sub-Committee agreed to:-

(i) approve the revised structure set out in Appendix 1 to the report;

(ii) note the limited effect this would have on the Transport Fund asset allocation as shown in Appendix 2 to the report; and

(iii) consider the investment opportunities detailed.

VII PRESENTATION

Iain Lindsay and Tim Bird of Goldman Sachs gave a short presentation on the Performance Fixed Income Portfolio.

It was reported that the portfolio had under performed the benchmark, reflecting the overall performance of the bonds market in the current financial climate during this period.

It was noted however that although signs of stability were returning, Government bonds were still failing to provide an adequate return. In contrast, corporate bonds were performing well and that any risks involved were being more than compensated by the return.

The Convener thanked the speakers for their presentation and it was agreed that officers would hold discussions regarding these proposals.

Willie SAWERS, Convener.