Pension Sub-committee And Pension Board - 29/08/2011

At a MEETING of the SUPERANNUATION INVESTMENT SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE held at Dundee on 29th August, 2011.

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 SUBSTITUTES

Apologies had been submitted by Bailie George Regan and Councillor Andrew Dawson.

II GOVERNANCE COMPLIANCE STATEMENT

There was submitted Report No 401-2011 by the Director of Finance seeking approval for a Governance Compliance Statement for Tayside Superannuation Funds.

The Sub-Committee approved the Governance Compliance Statement as detailed in 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.

III TAYSIDE SUPERANNUATION FUNDS

(a) PERFORMANCE SUMMARIES

There was submitted Report No 395-2011 by the Director of Finance relating to Performance Summaries for the quarter, twelve months and three years to 30th June, 2011 and reviewing the investment performance of the Main Fund's four Fund Managers (excluding Property) for the quarter to 30th June, 2011. 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' specific 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 396-2011 by the Director of Finance relating to the Property Portfolio performance for the quarter, twelve months and three years to June 2011 and reviewing the investment performance of the Property Portfolio for the periods to 30th June, 2011.

The report compared investment performances with an appropriate benchmark.

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 378-2011 by the Director of Finance summarising investments and transactions during the period 1st April to 30th June, 2011 and reviewing the investment activities of the Main Fund's six Fund Managers for the quarter to 30th June, 2011. 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

There was submitted Report No 394-2011 by the Director of Finance which reviewed the current funding level of the Funds as assessed by the Fund Actuary.

The Sub-Committee noted the report.

IV PRESENTATION - REVIEW OF ALLIANCE BERNSTEIN

Sharon Fay and Frances Smyth of Alliance and Bernstein gave a short presentation reviewing its performance for 2011 in respect of the Tayside Superannuation Fund, and outlining a review of its portfolio strategy for the future.

It was noted that this strategy sought to minimise areas of high risk whilst retaining opportunities for the future, and they were confident of the Fund's performance in the longer-term.

After Ms Fay and Ms Smyth had made their presentation and answered questions from members of the Sub-Committee, they were thanked for their presentation by the Convener.

Willie SAWERS, Convener.