Pension Sub-committee And Pension Board - 01/06/2015

At a JOINT MEETING of the PENSION SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE AND THE PENSION BOARD held at Dundee on 1st June, 2015.

Present:-

PENSION SUB-COMMITTEE

Bailie Willie SAWERS

COUNCILLORS

PENSION BOARD

Bailie Willie SAWERS, Convener, in the Chair.

I DECLARATION OF INTEREST

There were no declarations of interest.

II TAYSIDE PENSION FUNDS RISK REGISTER

There was submitted Report No 226-2015 by the Director of Corporate Services updating the Risk Register for the Tayside Pension Funds.

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

III REVIEW OF ENVIRONMENTAL, SOCIAL AND CORPORATE GOVERNANCE POLICY

There was submitted Report No 222-2015 by the Director of Corporate Services whereby reference was made to Article IV of the minute of meeting of the Pension Sub-Committee of the Policy and Resources Committee of 17th November, 2008, reviewing the Fund's current policy on Socially Responsible Investing and recommending an addendum to the policy with regards to the Funds investment in tobacco companies.

The Sub-Committee and Board approved the addendum to the policy as outlined in Appendix 1.

The Sub-Committee and Board 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.

IV TAYSIDE PENSION FUNDS

(a) PERFORMANCE SUMMARIES

There was submitted Report No 221-2014 by the Director of Corporate Services relating to Performance Summaries for the quarter, 1, 3, 5 and 10 year time periods to 31st March, 2015 reviewing the investment performance of the Main Funds five Fund Managers (including Property) and the Financing Fund for the period to 31st March, 2015. 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 and Board 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 199-2015 by the Director of Corporate Services summarising investments and transactions during the period 1st January to 31st March, 2015 reviewing the investment activities of the Main Funds seven Fund Managers for the quarter to 31st March, 2015. 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 and Board 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 225-2015 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 and Board noted the report by Barnett Waddingham, the Fund Actuary, further noting that this report was the first quarterly report available since finalising the triennial valuation of 31st March, 2014.

V SOCIALLY RESPONSIBLE INVESTMENT SIX MONTHLY REPORT

There was submitted Report No 223-2015 by the Director of Corporate Services, whereby reference was made to Article IV of the minute of meeting of the Pension Sub-Committee of the Policy and Resources Committee of 17th November, 2008, reviewing the progress by the Fund Managers regarding the positive engagement policy on Environmental, Social and Corporate Governance.

The Sub-Committee and Board noted the information contained within the report with regard to the activities of the Fund Managers during the six month period ended 31st March, 2015.

VI TAYSIDE TRANSPORT PENSION FUNDS ACTUARIAL VALUATION AT 31ST MARCH, 2015

There was submitted Report No 224-2015 by the Director of Corporate Services which considered a report by the Fund Actuary and updating the Committee on the Actuarial Valuation of the Tayside Transport Pension Fund at 31st March, 2014.

The Sub-Committee and Board noted the information contained within the report.

VII PRESENTATION

Geoff Day, Tony Docherty and Graeme Rutter of Schroders Real Estate Capital Partners gave a short presentation.

Geoff Day briefed members on changes to Schroders Real Estate Capital Partners highlighting the depth of experience that the team dedicated to the Fund had, and outlining forecast for future property markets.

Graeme Rutter gave an overview of the mandate and portfolio objectives, and it was noted that the UK Portfolio was continuing to out-perform the benchmark and that returns remained stable as sentiment improved within regional markets.

Thereafter, Tony Doherty briefed members on investment within the affordable housing market and key considerations which would need to be investigated prior to investing in this market, in particular the ability to match the investment objective currently set for the fund real estate portfolio.

After they had answered questions from members, the Convener thanked Geoff, Graeme and Tony for their interesting and informative presentation.

Willie SAWERS, Convener.