Pension Sub-committee And Pension Board - 26/11/2012

At a MEETING of the SUPERANNUATION INVESTMENT SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE held at Dundee on 26th November, 2012.

APPENDIX I

Present:-

Bailie Ian BORTHWICK

COUNCILLORS

Councillor Jimmy BLACK, Depute Convener, in the Chair.

Unless marked thus * all items stand delegated.

I DECLARATION OF INTEREST

No declarations of interest were made.

II PROPOSED TIMETABLE OF MEETINGS FOR 2013

There was submitted Report No 461-2012 by the Director of Corporate Services proposing a suggested programme of meetings of the Superannuation Investment Sub-Committee to cover investment performance and issues arising in 2013.

The Sub-Committee examined the dates set out in the timetable at Appendix 1 and agreed the proposed programme of meetings.

III SOCIALLY RESPONSIBLE INVESTMENT SIX MONTHLY REPORT

There was submitted Report No 460-2012 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 30th September, 2012.

IV INVESTMENT IN TOBACCO

This item was withdrawn.

V STATEMENT OF ACCOUNTS AND EXTERNAL AUDITORS ANNUAL REPORT

There was submitted Agenda Note AN197-2012 advising the Sub-Committee that the following reports had been submitted to the Scrutiny Committee on 24th September, 2012:-

Report No 379-2012 - 2011/2012 Draft Audited Statement of Accounts for Tayside Superannuation Funds;

Report No 380-2012 - External Auditor's Annual Report; and

Report No 381-2012 - Tayside Superannuation Funds 2011/2012 Accounts and Audit.

The Reports could be accessed via the link below:-

http://www.dundeecity.gov.uk/reports/agendas/sc240912.pdf#navpanes=0

The Sub-Committee noted accordingly.

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.

VI TAYSIDE SUPERANNUATION FUNDS

(a) PERFORMANCE SUMMARIES

There was submitted Report No 458-2012 by the Director of Corporate Services reviewing the investment performance of the Main Fund's five Fund Managers (including Property) for the quarter to 30th September, 2012. It also considered the performance of the Transport Fund which shared three of these managers.

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

(b) SUMMARIES OF INVESTMENTS AND TRANSACTIONS

There was submitted Report No 434-2012 by the Director of Corporate Services reviewing the investment activities of the Main Fund's six Fund Managers for the quarter to 30th September, 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.

(c) QUARTERLY FUNDING REPORT

There was submitted Report No 459-2012 by the Director of Corporate Services.

This report reviewed the current funding level of the Funds as assessed by the Fund Actuary.

The Sub-Committee noted the report by the Fund Actuary.

VII ANNUAL REVIEW OF INVESTMENT PERFORMANCE 2012

There was submitted Report No 462-2012 by the Director of Corporate Services considering the Fund Independent Consultant's paper 'Annual Review of Investment Performance' November, 2012 and its recommendations for change.

The Sub-Committee noted the report and agreed its recommendations.

VIII REVIEW OF PERFORMANCE

The Fund's Independent Consultant submitted a report reviewing the performance of the Funds and the individual managers over the year.

The Sub-Committee noted the content of the report.

IX PRESENTATION

Douglas Stewart and Nick Davidson of Alliance Bernstein gave a short presentation, reviewing the performance during 2012 in respect of the Tayside Superannuation Fund and outlining its portfolio strategy for the future.

It was noted that due to the current financial climate, the fund had underperformed against benchmark however they were confident that performance would improve in the future.

After Mr Stewart and Mr Davidson had made their presentation and answered questions from members, they were thanked for their presentation by the Convener.

Jimmy BLACK, Depute Convener.

APPENDIX II