Pension Sub-committee And Pension Board - 03/03/2014

At a MEETING of the PENSION INVESTMENT SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE held at Dundee on 3rd March, 2014.

APPENDIX I

Present:-

COUNCILLORS

Councillor Jimmy BLACK, Depute Convener, in the Chair.

I DECLARATION OF INTEREST

There were no declarations of interest.

II TAYSIDE PENSION FUNDS BUSINESS PLAN 2014/2015

There was submitted Report No 130-2014 by the Director of Corporate Services introducing the ninth annual business plan for the Tayside Pension Funds.

The Sub-Committee noted the information within the report and approved the 2014/2015 Business Plan which applied to the administration and management of the Tayside Pension Fund and the Tayside Transport Pension Fund.

III TAYSIDE PENSION FUNDS RISK REGISTER

There was submitted Report No 128-2014 by the Director of Corporate Services updating the Risk Register for Tayside Pension Funds.

The Sub-Committee approved the Risk Register for the Tayside Pension Fund and Tayside Transport Pension Fund.

IV TREASURY MANAGEMENT STRATEGY

There was submitted Report No 131-2014 by the Director of Corporate Services reviewing the Treasury Management Strategy for the Tayside Pension Fund.

The Sub-Committee approved the Treasury Management Strategy including the list of permitted counterparties.

V FUNDING STRATEGY STATEMENT

There was submitted Report No 126-2014 by the Director of Corporate Services reviewing the Funding Strategy Statements for the Pension Funds.

The Sub-Committee approved the Funding Strategy Statements for the Tayside Pension Fund and Tayside Transport Pension Fund.

VI STATEMENT OF INVESTMENT PRINCIPLES REVIEW

There was submitted Report No 133-2014 by the Director of Corporate Services reviewing Statements of Investment Principles for the Tayside Pension Fund and the Tayside Transport Pension Fund.

The Sub-Committee noted the information within the report and approved the Statements of Investment Principles for both the Tayside Pension Fund and the Tayside Transport Pension Fund.

VII LGPS (SCOTLAND) NEW GOVERNANCE ARRANGEMENTS DISCUSSION PAPER

The Committee noted the Tayside Pension Fund response to LGPS, Governance Consultation by the Scottish Public Pensions Agency.

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 involve the likely disclosure of exempt information as defined in paragraphs 4, 6 and 11 of Part I of Schedule 7A of the Act.

VIII TAYSIDE SUPERANNUATION FUNDS

(a) PERFORMANCE SUMMARIES

There was submitted Report No 132-2014 by the Director of Corporate Services relating to Performance Summaries for the quarter, twelve months, three years, five years and ten years to 31st December, 2013, reviewing the investment performance of the Main Fund's five Fund Managers (including Property) and the Financing Fund for the quarter to 31st December, 2013. It also considered the performance of the Transport Fund which invests with three of these managers.

The report compared investment performance of the Funds with the Funds' specific benchmarks which consisted of various stock and security marked indices.

The Sub-Committee noted the information contained therein with regard to the performance of the Tayside Pension Fund and Tayside Transport Pension Fund and their Fund Managers.

(b) SUMMARIES OF INVESTMENTS AND TRANSACTIONS

There was submitted Report No 84-2014 by the Director of Corporate Services summarising investments and transactions during the period 1st October to 31st December, 2013 reviewing the investment activities of the Main Fund's seven Fund Managers for the quarter to 31st December, 2013. 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 Pension Fund and Tayside Transport Pension Fund and their Fund Managers.

(c) QUARTERLY FUNDING REPORT

There was submitted Report No 127-2014 by the Director of Corporate Services which considered reports by the Fund Actuary reviewing the current funding level of the Funds as assessed by the Fund Actuary.

The Sub-Committee noted the report.

IX INVESTMENT IN TOBACCO - EMPLOYER ENGAGEMENT

Members noted the current position with regards to this issue.

X ANNUAL REVIEW OF INVESTMENT PERFORMANCE - MAIN FUND

There was submitted Report No 129-2014 by the Director of Corporate Services which considered a report by the Investment Consultants. Kenneth Ettles of AON Hewitt gave a short overview of this.

The Sub-Committee noted the report and, in particular, the recommendations on individual investment managers. A further report would be brought back in due course as part of a wider review of the Fund.

XI PRESENTATION

Nicholas Gardner and Douglas Stewart of Alliance Bernstein gave a short presentation to members reviewing the current position of the portfolio, including benchmarks and performance summary.

Current investment goals were outlined, noting that it was a strong year for equities across developed markets.

The Chair thanked the presentation for their attendance on behalf of members.

Jimmy BLACK, Depute Chair.