Pension Sub-committee And Pension Board - 20/09/2021

At a JOINT MEETING of the PENSION SUB-COMMITTEE of the POLICY AND RESOURCES COMMITTEE AND THE PENSION BOARD held remotely on 20th September, 2021.

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 APOLOGIES

The Sub-Committee and Board noted that no apologies had been received.

III MINUTE OF PREVIOUS MEETING

The minute of meeting of 21st June, 2021 was submitted and approved.

IV RISK REGISTER

There was submitted Report No 239-2021 by the Executive Director of Corporate Services updating the Risk Register for the Tayside Pension Fund.

The Sub-Committee and Board approved the Quarterly Risk Register for the Tayside Pension Fund which was updated on 16th June 2021, and noted the following changes to risk profile since the previous report:

Risk 19: Failure to implement Environmental, Social & Corporate Governance (ESG) Policy and furthermore to address and limit exposure to climate change risk.

This risk is added to the register in recognition of the Funds commitment to ensure responsible stewardship. The cause of risk is the failure to understand the consequences of changing legislation, consumer demand, and taking appropriate action as a result of weak policy, lack of knowledge, lack of transparency or poor practices. Whilst there are robust risk control measures to mitigate, there remains a reasonable chance in terms of likelihood due to the number of investments in the portfolio, and the number of factors that could result in event.

V FUNDING STRATEGY STATEMENT 2021 (REVISED)

On a reference to Article XIV of the minute of meeting of this Committee of 21st June 2021, there was submitted Report No 240-2021 by the Executive Director of Corporate Services presenting a revised Funding Strategy Statement that had been updated to reflect the change in cessation valuation methodology for exiting employers.

The Sub-Committee and Board approved the revised Funding Strategy Statement for Tayside Pension Fund contained in Appendix 1 of the report.

VI PENSION ADMINISTRATION PERFORMANCE QUARTERLY UPDATE TO 30TH JUNE 2021

There was submitted Report No 241-2021 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 TAYSIDE PENSION FUND ACCOUNTS 2020/2021

(a)                           TAYSIDE PENSION FUND 2020/2021 - ACCOUNTS AND AUDIT

There was submitted Report No 242-2021 by the Executive Director of Corporate Services reporting on the outcome of the external audit of Tayside Pension Fund for the year to 31st March 2021. A copy of the External Auditor's Annual Audit Report (Report No 244-2021) and the 2020/2021 Audited Statement of Accounts for the Tayside Pension Fund (Report No 243-2021) were also considered.

The Sub-Committee and Board noted the content of the External Auditors Annual Audit Report, in particular that Audit Scotland anticipated issuing an unqualified audit opinion.

(b)                           DRAFT AUDITED STATEMENT OF ACCOUNTS 2020/2021

There was submitted and noted by the Sub-Committee and Board Report No 243-2021 by the Executive Director of Corporate Services.

(c)                           EXTERNAL AUDITORS ANNUAL REPORT

There was submitted and noted by the Sub-Committee and Board Report No 244-2021 by Audit Scotland.

VIII ANNUAL TREASURY MANAGEMENT ACTIVITY 2020/2021

There was submitted Report No 245-2021 by the Executive Director of Corporate Services reviewing the Treasury Management activities for the period 1st April, 2020 to 31st March, 2021.

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

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.

IX TAYSIDE PENSION FUNDS

(a)                           PERFORMANCE SUMMARIES

There was submitted Report No 246-2021 reviewing the investment performance of the Funds Investment Managers for the quarter to 30th June, 2021. The report compared investment performance of the Fund 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 Main Fund and their Fund Managers.

(b) SUMMARIES OF INVESTMENTS AND TRANSACTIONS

There was submitted Report No 231-2021 by the Executive Director of Corporate Services reviewing the investment activities of Tayside Pension Funds five Fund Managers for the quarter to 30th June, 2021 and summarising the transactions of each Fund Manager and showing the market values of the Pension Fund.

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 UPDATE AS AT 30TH JUNE, 2021

There was submitted Report No 247-2021 by the Executive Director of Corporate Services reviewing the current funding level of the Fund as assessed by the Fund Actuary.

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

(d)                           SECURITIES LENDING SIX MONTH ACTIVITY TO 30TH JUNE, 2021

There was submitted Report No 248-2021 by the Executive Director of Corporate Services presenting an update on Securities Lending activity for the six month period ended 30th June 2021.

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

X ASSESSMENT OF ENERGY SECTOR INVESTMENTS

The Sub-Committee and Board received an update and noted that a report would be submitted to a future meeting.

XI PRESENTATION

Clare Erskine-Murray and Tom Wright of Baillie Gifford gave a short presentation to the Sub-Committee and Board.

After Ms Erskine-Murray and Mr Wright had given their presentation and answered questions from members, the Chair thanked the presenters on behalf of members of the Sub-Committee and Board.

Willie SAWERS, Chair.