Pension Sub-committee And Pension Board - 07/03/2016

At a JOINT MEETING of the PENSION SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE AND THE PENSION BOARD held at Dundee on 7th March, 2016.

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 98-2016 by the Executive Director of Corporate Services updating the Risk Register for the Tayside Pension Funds.

The Sub-Committee and Board approved the updated Quarterly Risk Register for the Tayside Pension Fund and Tayside Transport Pension Fund and noted the following change to risk profiles and control measures:-

Risk 12 - Decreased risk due to installation of new software relating to the new CARE scheme. Current skills gap within the Pension Admin Team in terms of system proficiency was currently being addressed and as their knowledge and experience increases, the risk reduces.

III TAYSIDE PENSION FUNDS BUSINESS PLAN 2016/2017

There was submitted Report No 100-2016 by the Executive Director of Corporate Services introducing the eleventh annual Business Plan for the Tayside Pension Funds.

The Sub-Committee and Board noted the information within the report and approved the 2016/2017 Business Plan which applied to the administration and management of the Tayside Pension Fund and the Tayside Transport Pension Fund.

IV TREASURY MANAGEMENT STRATEGY

There was submitted Report No 101-2016 by the Executive Director of Corporate Services reviewing the Treasury Management Strategy for Tayside Pension Fund.

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

V ADMISSION AGREEMENT - CULTURE PERTH AND KINROSS

There was submitted Report No 94-2016 by the Executive Director of Corporate Services seeking agreement of the Sub-Committee and Board to the admission of Culture Perth and Kinross to the Local Government Pension Scheme as an Admission Body.

The Sub-Committee and Board agreed that from the date it comes into being, Culture Perth and Kinross be admitted to the Local Government Pension Scheme as an Admission Body and to make and enter into an appropriate admission agreement. The Sub-Committee and Board also noted that Perth and Kinross Council would act as guarantor for the new organisation.

VI PENSION BOARD AND SUB-COMMITTEE TRAINING

A verbal update was given as to current progress and alternative solutions were discussed.

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

VII TAYSIDE PENSION FUNDS

(a) PERFORMANCE SUMMARIES

There was submitted Report No 95-2016 by the Executive Director of Corporate Services relating to Performance Summaries for the quarter to 31st December. 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 75-2016 by the Executive Director of Corporate Services summarising investments and transactions during the period 1st September to 31st December, 2015 reviewing the investment activities of the Main Funds seven Fund Managers for the quarter to 31st December, 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.

VIII QUARTERLY FUNDING REPORT

There was submitted Report No 97-2016 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.

IX ANNUAL REVIEW OF INVESTMENT PERFORMANCE - MAIN FUND

There was submitted Report No 103-2016 to the Executive Director of Corporate Services.

This report considered a paper by the Fund Consultants entitled Annual Review of Investment Performance 2015 February, 2016 and its opinion and recommendations.

The Sub-Committee and Board noted the report and, in particular, the recommendations on individual investment managers. The report also referred to the Investment Strategy Review.

X INVESTMENT STRATEGY REVIEW

There was submitted Report No 102-2016 by the Executive Director of Corporate Services.

The report considered the Fund Consultant paper Review of Investment Strategy February, 2016 and its opinion and recommendations.

The Sub-Committee and Board agreed to note the content of the report by the Fund Consultant and its recommendations.

XI PRESENTATION

Steve Kirk and David Barber from Fidelity gave a short presentation.

A summary of the performance of the Portfolio for Question 4 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, with the performance objective being to consistently achieve this over a rolling three year period.

The Chair thanked the speakers for their presentation.

Willie SAWERS, Convener.