Pension Sub-committee And Pension Board - 20/06/2014

At a MEETING of the PENSION INVESTMENT SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE held at Dundee on 20th June, 2014.

APPENDIX I

Present:-

Bailie Willie SAWERS

COUNCILLORS

Bailie Willie SAWERS, Convener, in the Chair.

I DECLARATION OF INTEREST

There were no declarations of interest.

II SOCIALLY RESPONSIBLE INVESTMENT - SIX MONTHLY REPORT

There was submitted Report No 246-2014 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.

III TAYSIDE PENSION FUNDS RISK REGISTER

There was submitted Report No 245-2014 by the Director of Corporate Services updating the Risk Register for the Tayside Pension Funds.

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

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.

IV TAYSIDE PENSION FUNDS

(a) PERFORMANCE SUMMARIES

There was submitted Report No 244-2014 by the Director of Corporate Services relating to Performance Summaries for the quarter, 1, 3, 5 and 10 year time periods to 31st March, 2014 reviewing the investment performance of the Main Fund's five Fund Managers (including Property) and the Financing Fund for the period to 31st March, 2014. 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 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 228-2014 by the Director of Corporate Services summarising investments and transactions during the period 1st January to 31st March, 2014 reviewing the investment activities of the Main Fund's seven Fund Managers for the quarter to 31st March, 2014. The Transport Fund shared three of these managers and their transactions were included.

The report summarised the transactions of each Fund Managers 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 Fun and Tayside Transport Pension Fund and their Fund Managers.

(c) QUARTERLY FUNDING REPORT

There was submitted Report No 243-2014 by the Director of Corporate Services which considered a report reviewing the current funding level of the Funds as assessed by the Fund Actuary.

The Sub-Committee noted the report by the Fund Actuary and noted that work would be commencing on the triennial actuarial valuation as at 31st March, 2014. This would be based on actual membership data of the Fund and the results of this were likely to differ from the assessment given the approximate nature of the calculations based on the previous triennial data. There would be no further report provided from the Fund Actuary until this exercise was complete. The report of the outcome was anticipated to be presented at the meeting of 1st December, 2014.

V TAYSIDE PENSION FUND - INVESTMENT IN TOBACCO

On a reference to Article VII of the minute of meeting of this Sub-Committee of 2nd September, 2013, it was reported that a report by the Director of Corporate Services relative to the above would be considered by the Policy and Resources Committee at its meeting to be held on 23rd June, 2014.

VI PRESENTATION

Joe Malloy and Mark Vickery of Goldman Sachs gave a short presentation.

A summary of the performance of the Portfolio was given, noting the key performance drivers, and comparison of this to benchmark figures. It was noted that the Portfolio was continuing to out-perform its benchmark, and that the cross-sector strategy was a huge contributor to excess return.

After they had answered questions from members, the Convener thanked Joe and Mark for their interesting and informative presentation.

Willie SAWERS, Convener.

APPENDIX II