Pension Sub-committee And Pension Board - 23/05/2011

At a MEETING of the SUPERANNUATION INVESTMENT SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE held at Dundee on 23rd May, 2011.

Present:-

Bailie Willie SAWERS

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 Bailies George Regan and Rod Wallace.

II SOCIALLY RESPONSIBLE INVESTMENT - SIX MONTHLY REPORT

There was submitted Report No 269-2011 by the Director 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, 2011.

The Sub-Committee resolved under Section 50(A)(4) of the Local Government (Scotland) Act 1973 that the public and press 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 disclose of exempt information as defined in paragraphs 4, 6 and 11 of Part I of Schedule 7A of the Act.

III PENSIONS PATHFINDER PROJECT

A verbal update was given to the Sub-Committee on the Pensions Pathfinder Project and the current Pensions Pathfinder Project newsletter submitted for members' information.

Members noted the content of the newsletter and recommendations of the Project Team with regard to:-

(i) Investment Management;

(ii) Pensions Administration; and

(iii) Governance

IV TAYSIDE SUPERANNUATION FUNDS

(a) PERFORMANCE SUMMARIES

There was submitted Report No 270-2011 by the Director of Finance relating to Performance Summaries for the quarter, twelve months and three years to 31st March, 2011, which reviewed the investment performance of the Main Fund's four Fund Managers for the quarter to 31st March, 2011. It also considered the performance of the Transport Fund which shared two of these managers.

The report compared investment performance of the Funds with the Funds' specific benchmarks.

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 271-2011 by the Director of Finance for the quarter, twelve months and three years to 31st March, 2011 which reviewed the investment performance of the Property Portfolio for the periods to 31st March, 2011.

The report compared investment performance 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 259-2011 by the Director of Finance summarising investments and transactions during the period 1st January to 31st March, 2011, reviewing the investment activities of the Main Fund's six Fund Managers for the quarter to 31st March, 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 value 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 268-2011 by the Director of Finance which considered the report by the Actuary reviewing the current funding level of the Funds as assessed by the Fund Actuary.

The Sub-Committee is asked to note the report by the Fund Actuary.

V PRESENTATION

Tony Docherty and Graeme Rutter of Schroders gave a short presentation.

Graeme Rutter advised that Fund performances had been affected by the current economic climate; however, growth in the property market was improving with out-performance of investments made. Future performance could be affected by inflation however.

Thereafter, Tony Docherty outlined the strategies to be implemented to ensure future portfolio growth.

The Convener thanked the speakers for their presentation.

Willie SAWERS, Convener.