Pension Sub-committee And Pension Board - 17/08/2009

At a MEETING of the SUPERANNUATION INVESTMENT SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE held at Dundee on 17th August, 2009.

APPENDIX I

Present:-

BAILIES

COUNCILLORS

Bailie Willie SAWERS, Convener, in the Chair.

Unless marked thus * all items stand delegated.

I APOLOGIES AND SUBSTITUTES

Apologies had been submitted by Bailie Wallace.

II MINUTE OF MEETING OF 18TH MAY, 2009

The minute of meeting of the Superannuation Investment Sub-Committee of 18th May, 2009 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 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 407-2009 by the Head of Finance relating to Performance Summaries for various periods to 30th June, 2009 and reviewing the investment performance of the Main Fund's four fund managers (excluding Property) for the quarter to 30th June, 2009. It also considered the performance of the Transport Fund which shared two of these managers.

The report compared investment performances of the Funds with the Funds' specified benchmarks which consisted of various stock market indices.

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 408-2009 by the Head of Finance relating to the property portfolio performance for the period to 30th June, 2009, reviewing its investment performance 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.

(c) SUMMARIES OF INVESTMENTS AND TRANSACTIONS

There was submitted Report No 394-2009 by the Head of Finance summarising investments and transactions during the period 1st April to 30th June, 2009 and reviewing the investment activities of the Main Fund's five fund managers for the quarter to 30th June, 2009. The Transport Fund shared three of these managers and their transactions were included.

The report also 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 409-2009 by the Head of Finance which considered 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.

IV PRESENTATION

Tom Wright and Rosie Oldfield of Baillie Gifford gave a brief presentation, detailing the investment philosophy of Baillie Gifford. It was noted that this organisation was focussed on fund management only and that they were continuing to operate on a long term basis with ongoing graduate recruitment schemes.

Thereafter, members were advised by Tom that the previous year had been highly volatile, with very weak and unstable markets. This had resulted in disappointing returns, particularly in energy related companies, although companies with stable growth characteristics had performed well.

Rosie then outlined to members areas where attractive opportunities existed, such as stable financial companies, and companies where share valuation had been much lower than anticipated.

The Convener thanked Tom and Rosie for their interesting and informative presentation.

Willie SAWERS, Convener.