Pension Sub-committee And Pension Board - 06/03/2017

At a JOINT MEETING of the PENSION SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE AND THE PENSION BOARD held at Dundee on 6th March, 2017.

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 90-2017 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 there were no changes to risk profiles from the previous report.

III TAYSIDE PENSION FUNDS BUSINESS PLAN 2017/2018

There was submitted Report No 91-2017 by the Executive Director of Corporate Services introducing the annual business plan for the Tayside Pension Funds.

The Sub-Committee and Board noted the information within the report and approved the 2017/2018 Business Plan, which applied to the administration and management of the Tayside Pension Fund and the Tayside Transport Pension Fund.

IV TREASURY POLICY

There was submitted Report No 92-2017 by the Executive Director of Corporate Services revising the Council's Treasury Policy Statement which was intended to govern all treasury activities carried out by the Pension Fund.

The Sub-Committee and Board approved the policies and procedures laid out in the attached 'Treasury Policy Statement 2017/2018' and noted that following a recent review (Internal Audit Report 2016-16 refers) that a separate Treasury Policy Statement be maintained for the Pension Fund and reviewed annually.

V TREASURY MANAGEMENT STRATEGY

There was submitted Report No 93-2017 by the Executive Director of Corporate Services reviewing the Treasury Management Strategy for Tayside Pension Strategy.

The Sub-Committee and Board approved the Treasury Management Strategy.

VI PENSION ADMINISTRATION PERFORMANCE

There was submitted Report No 94-2017 by the Executive Director of Corporate Services providing information on the recent quarter's operational performance in relation to Pension Administration.

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

VII STATEMENT OF INVESTMENT PRINCIPLES REVIEW

There was submitted Report No 95-2017 by the Executive Director of Corporate Services reviewing Statements of Investment Principles for the Tayside Pension Fund and the Tayside Transport Pension Fund.

The Sub-Committee and Board 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.

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.

VIII TAYSIDE PENSION FUNDS

(a) PERFORMANCE SUMMARIES

There was submitted Report No 96-2017 by the Executive Director of Corporate Services relating to Performance Summaries for the quarter, 1, 3 and 5 year time periods to 31st December, 2016, reviewing the investment performance of the Main Fund's five Fund Managers (including Property) and the Financing Fund for the quarter 31st December, 2016. It also considered the performance of the Transport Fund which invests with four 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 Fund and Tayside Transport 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.

IX ANNUAL REVIEW OF INVESTMENT PERFORMANCE

There was submitted Report No 98-2017 by the Executive Director of Corporate Services which considered a report by the Manager entitled "Annual Review of Investment Performance 2016" February, 2017 and its opinion and recommendations.

The Sub-Committee and Board noted the report in Appendix 1 by the Investment Manager and in particular the recommendations on individual investment managers.

X PRESENTATION

Tom Wright and Fiona MacLeod from Baillie Gifford gave a short presentation.

Tom briefed members on the performance of the Fund, highlighting key areas, noting that a long-term outlook was required, due to the political volatility in the previous year.

It was noted that governance was integral and that an increase in resources in this field continued to be made.

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

Willie SAWERS, Convener.