Pension Sub-committee And Pension Board - 04/06/2012

At a MEETING of the SUPERANNUATION INVESTMENT SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE held at Dundee on 4th June, 2012.

 

Present:-

 

Bailie Willie SAWERS

 

COUNCILLORS

 

Jimmy BLACK

Kevin KEENAN

Gregor Murray

 

Bailie Willie SAWERS, Convener, in the Chair.

 

Unless marked thus * all items stand delegated.

 

I SOCIALLY RESPONSIBLE INVESTMENT - SIX MONTHLY REPORT

 

There was submitted Report No 220-2012 by the Director of Corporate Services 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, 2012.

 

II TRAINING - BAILLIE GIFFORD LOCAL AUTHORITY SEMINAR AND TRAINING - EDINBURGH - OCTOBER 2012

 

There was submitted Agenda Note AN80-2012 advising members that Baillie Gifford were providing a seminar for members, officers and advisers. It was noted that the CIPFA Pensions Sub-Group would now provide this. The Sub-Committee agreed that all members wishing to could attend this training, having noted that the seminar was free but there would be travel and subsistence costs.

 

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 218-2012 by the Director of Corporate Services relating to Performance Summaries for the quarter, twelve months and three years to 31st March, 2012. It also considered the performance of the Transport Fund which shares three 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) SUMMARIES OF INVESTMENTS AND TRANSACTIONS

 

There was submitted Report No 182-2012 by the Director of Corporate Services summarising investments and transactions during the period 1st January to 31st March, 2012 reviewing the investment activities of the Main Fund's six Fund managers for the quarter to 31st March, 2012. 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.

 

(c) QUARTERLY FUNDING REPORT

 

There was submitted Report No 219-2012 by the Director of Corporate Services which considered a report by the Fund Actuary.

 

The Sub-Committee noted the report.

 

IV MEETING OF LGPS CONVENERS - 14TH MARCH, 2012

 

A verbal update was given to members on the meeting of the LGPS Conveners and it was noted that the main issues considered at this meeting were:-

 

- the review of governance arrangements;

- opportunities for infrastructure investments including Social Housing.

 

Members noted accordingly.

 

IV(a) APPOINTMENT OF INDEPENDENT ADVISOR

 

The Director of Corporate Services advised members that an approach had been made from an independent advisor regarding the provision of specialist independent advice to the Superannuation Sub-Committee.

 

It was remitted to the Director of Corporate Services to seek further information on this and provide an update to members in due course.

 

V PRESENTATION

 

Gordon Strachan of Fidelity gave a short presentation on performance and gave an overview of the mandate.

 

It was noted that during the last quarter, the equity fund out-performed the benchmark and annualised, since inception the fund was ahead of the benchmark but behind target.

 

With regard to the bond mandate, extensive in-house research had indicated that a diversified approach could still add value and that although the tradition gilt market continued to decline, exposure to inflation linked bonds had contributed to overall good performance.

 

 

 

 

Willie SAWERS, Chair.