Pension Sub-committee And Pension Board - 24/06/2019

At a JOINT MEETING of the PENSION SUB-COMMITTEE of the POLICY AND RESOURCES COMMITTEE AND THE PENSION BOARD held at Dundee on 24th June, 2019.

Present:-

PENSION SUB-COMMITTEE

BAILIES

COUNCILLORS

PENSION BOARD

Bailie Willie SAWERS, in the Chair.

I DECLARATION OF INTEREST

No declarations of interest were made.

II MINUTE OF PREVIOUS MEETING

The minute of meeting of 25th March, 2019 was submitted and approved.

III TAYSIDE PENSION FUNDS RISK REGISTER

There was submitted Report No 235-2019 by the Executive Director of Corporate Services updating the Risk Register for Tayside Pension Fund.

The Sub-Committee and Board approved the updated Quarterly Risk Register for Tayside Pension Fund and noted that there had been no changes to risk profile since the previous report.

IV PROCUREMENT OF COVENANT REVIEW SERVICE

The Financial Services and Investment Manager advised members of the Sub-Committee and Board that an exercise for an Employer Covenant Review had been undertaken. Information and training sessions would also be arranged for members.

The Sub-Committee and Board noted accordingly.

V ENVIRONMENTAL, SOCIAL AND CORPORATE GOVERNANCE POLICY

There was submitted Report No 236-2019 by the Executive Director of Corporate Services, whereby reference was made to Article V of the minute of meeting of this Committee of 4th June, 2018, reviewing the Funds current policy on Socially Responsible Investing.

The Sub-Committee and Board approved the Environmental, Social and Corporate Governance Policy for the Tayside Pensions Funds, noting that there were no amendments to the policy previously approved.

It was further agreed that a briefing session be arranged for the Sub-Committee and Board on this.

VI PENSION ADMINISTRATION PERFORMANCE - QUARTERLY UPDATE

There was submitted Report No 237-2019 by the Executive Director of Corporate Services providing information on the recent quarters operational performance in relation to Pension Administration.

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

VII INTERNAL AUDIT REPORT REVIEW OF PENSIONSWEB UTILISATION

This item was withdrawn.

VIII TAYSIDE PENSION FUNDS REVIEW OF INTERNAL CONTROLS 2018/2019

There was submitted Report No 239-2019 by the Executive Director of Corporate Services, the Review of Internal Controls 2018/2019 prepared by the Councils External Auditor, Audit Scotland.

The Sub-Committee and Board noted Audit Scotlands report and approved the management response.

IX TAYSIDE PENSION FUND ANNUAL GOVERNANCE AND GOVERNANCE COMPLIANCE STATEMENTS

There was submitted Report No 240-2019 by the Executive Director of Corporate Services presenting the Annual Governance Statement and Governance Compliance Statement for approval and inclusion into the unaudited Annual Accounts for the year ended 31st March, 2019, and setting out the governance arrangements of Tayside Pension Fund and the extent to which it complied with regulations.

The Sub-Committee and Board agreed to:-

(i) approve the Annual Governance and Governance Compliance Statements which were included as an Appendix to this report; and

(ii) instruct the inclusion of the statements in the Annual Accounts for the year to 31st March, 2019.

X TAYSIDE PENSION FUND ANNUAL REPORT AND ACCOUNTS 2018/2019

There was submitted Report No 241-2019 by the Executive Director of Corporate Services to providing some additional commentary on the unaudited Annual Accounts 2018/2019 which were being submitted to the Sub-Committee and Board along with the report.

It is recommended that the Sub-Committee and Board agreed to:-

(i) note the content of this covering report;

(ii) note the unaudited Annual Accounts which have been submitted along with this report;

(iii) instruct the Executive Director of Corporate Services to arrange for the unaudited Accounts to be signed as necessary; and

(iv) instruct the Executive Director of Corporate Services to submit the Annual Accounts to the Funds external auditor.

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.

XI TAYSIDE PENSION FUNDS

(a) PERFORMANCE SUMMARIES

There was submitted Report No 242-2019 by the Executive Director of Corporate Services relating to Performance Summaries for the quarter, 1, 3 and year time periods to 31st March, 2019 and reviewing the investment performance of the Funds Investment Managers for the quarter to 31st March, 2019.

The Sub-Committee and Board noted the information contained therein with regard to the performance of the Tayside Main Fund and their Fund Managers.

(b) SUMMARIES OF INVESTMENTS AND TRANSACTIONS 1ST JANUARY, 2019 TO 31ST MARCH, 2019

There was submitted Report No 243-2019 by the Executive Director of Corporate Services reviewing the investment activities of the Main Fund for the quarter to 31st March, 2019.

The Sub-Committee and Board noted the information contained therein with regard to the activities of the Tayside Pension Fund and its Fund Managers.

(c) QUARTERLY FUNDING REPORT

There was submitted Report No 244-2019 by the Executive Director of Corporate Services which considered a report reviewing the current funding level of the Fund as assessed by the Fund Actuary.

The Sub-Committee and Board noted the report by the Fund Actuary.

XII SOCIALLY RESPONSIBLE INVESTMENT SIX MONTHLY REPORT

There was submitted Report No 245-2019 by the Executive Director of Corporate Services, whereby reference was made to Article V of the minute of this meeting of 4th June, 2018, reviewing the progress by the Fund Managers regarding positive engagement in line with the Policy on Environmental, Social and Corporate Governance approved by the Sub-Committee and Board.

The Sub-Committee and Board noted the information contained within the report with regards to the activities of the Fund Managers during the six month period ended 30th September, 2018.

XIII PRESENTATION

Nick Davidson and Nick Gardiner of Alliance Bernstein gave a short presentation to the Sub-Committee and Board.

After Mr Davidson and Mr Gardiner had given their presentation and answered questions from members, the Chair thanked the presenters on behalf of members.

XIV REVIEW OF EXISTING EQUITY MANDATE ALLIANCE BERNSTEIN

There was submitted Report No 250-2019 by the Executive Director of Corporate Services providing a background on the history and performance of the Alliance Bernstein mandate and detailing proposed actions.

The Sub-Committee noted the content of the report and instructed the Financial Services and Investment Manager to progress the third option as detailed within the report.

Willie SAWERS, Chair.