Pension Sub-committee And Pension Board - 07/12/2015

At a JOINT MEETING of the PENSION SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE AND THE PENSION BOARD held at Dundee on 7th December, 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 448-2015 by the Executive 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 PROPOSED TIMETABLE OF MEETINGS FOR 2016

There was submitted Report No 449-2015 by the Executive Director of Corporate Services proposing a suggested programme of meetings of the Pension Sub-Committee and Pension Board in 2016.

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

IV SERVICE LEVEL AGREEMENT WITH ADMINISTERING AUTHORITY

There was submitted Report No 450-2015 by the Executive Director of Corporate Services advising the intention to negotiate a formal service level agreement with Dundee City Council as administering authority for Tayside Pension Fund.

The Sub-Committee and Board noted the content of the report and the intention to enter into a service level agreement for a period of three years which would be subject to full review at the end of the period, but also contain scope to review in the interim should any material change to service occur.

V LOCAL AND ALTERNATIVE INVESTMENT OPPORTUNITIES

There was submitted Report No 451-2015 by the Executive Director of Corporate Services outlining the intention to engage with investment consultant and actuary during Strategic Asset Allocation Review to consider appropriate asset allocation of the main fund to an alternative opportunities portfolio in order to benefit from local direct investment opportunities and collaborative alternative investment opportunities with other Scottish LGPS Funds. This review would be available to the potential Sub-Committee in March, 2016.

The Sub-Committee and Board noted the content of the report.

VI PENSIONSWEB SELF-SERVICE ADMINISTRATION SYSTEM

A verbal update on the current project being undertaken to install and implement the Hymans Robertson system was given.

The Sub-Committee and Board noted accordingly.

VII MIIFD II (REVISED MARKETS IN FINANCIAL INSTRUMENTS DIRECTIVE)

There was submitted Agenda Note AN207-2015 advising the Sub-Committee and Board that the EU regulation proposed to come into effect in January, 2017 had been delayed by up to a year from start date. Consultations were still to be undertaken as to what effects would impact local government pension scheme investments. Tayside Pension Fund Officers were actively engaging with individual investment managers at this early stage to ensure that relevant steps would be undertaken by the fund prior to the new regulations coming into force.

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.

VIII TAYSIDE PENSION FUNDS

(a) PERFORMANCE SUMMARIES

There was submitted Report No 452-2015 by the Executive Director of Corporate Services relating to Performance Summaries for the quarter to 30th September. 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 432-2015 by the Executive Director of Corporate Services summarising investments and transactions during the period 1st July to 30th September, 2015 reviewing the investment activities of the Main Funds seven Fund Managers for the quarter to 30th September, 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.

IX QUARTERLY FUNDING REPORT

There was submitted Report No 456-2015 by the Executive 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 the Fund Actuary.

X SOCIALLY RESPONSIBLE INVESTMENT SIX MONTHLY REPORT

There was submitted Report No 453-2015 by the Executive 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 and Board on 1st June, 2015.

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 30th September, 2015.

XI PRESENTATION

Tom Wright of Bailie Gifford gave a short presentation.

Tom briefed members on the performance of the Fund, highlighting key growth areas, noting that a long-term outlook was required.

It was noted that governance was integral and that an increase in resources in this field had been made.

After they had answered questions from members, the Convener thanked Tom for his interesting and informative presentation.

Willie SAWERS, Convener.