Pension Sub-committee And Pension Board - 11/12/2023

At a JOINT MEETING of the PENSION SUB-COMMITTEE of the CITY GOVERNANCE COMMITTEE AND THE PENSION BOARD held remotely on 11th December, 2023.

APPENDIX I

Present:-

PENSION SUB-COMMITTEE

BAILIES

COUNCILLORS

PENSION BOARD

Bailie Willie SAWERS, in the Chair.

I DECLARATION OF INTEREST

There were no declarations of interest.

II APOLOGIES

The Sub-Committee and Board noted apologies had been received from Councillor Rome and Councillor McHugh.

III MINUTE OF PREVIOUS MEETING

The minute of meeting of 18th September, 2023 was submitted and approved.

IV TAYSIDE PENSION FUNDS RISK REGISTER

There was submitted Report No 369-2023 by the Executive Director of Corporate Services seeking approval for the Quarterly Risk Register for Tayside Pension Fund which was updated on 20th November, 2023, noting no changes to risk profile since the previous report.

The Sub-Committee and Board:-

(i) approved the Quarterly Risk Register for Tayside Pension Fund, noting the revisions made.

V PENSION ADMINISTRATION PERFORMANCE QUARTERLY UPDATE TO 30TH SEPTEMBER, 2023

There was submitted Report No 370-2023 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:-

(i) noted the content of the report.

VI TAYSIDE PENSION FUND ACCOUNTS 2022/2023

(a) TAYSIDE PENSION FUND 2022/2023 ACCOUNTS AND AUDIT

There was submitted Report No 371-2023 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, 2023. A copy of the External Auditor's Annual Audit Report (Report No 373-2023) and the Draft Audited Annual Report and Accounts 2022/2023 for the Tayside Pension Fund (Report No 372-2023) were also submitted for consideration.

The Sub-Committee and Board:-

(i) noted the contents of External Auditor's Annual Audit Report, in particular that Audit Scotland anticipated issuing an unqualified audit opinion.

(b) DRAFT AUDITED ANNUAL REPORT AND ACCOUNTS 2022/2023

There was submitted Report No 372-2023 by the Executive Director of Corporate Services providing details of the Draft Audited Annual Report and Accounts 2022/2023.

The Sub-Committee and Board:-

(i) noted the content of the report.

(c) EXTERNAL AUDITORS ANNUAL REPORT

There was submitted Report No 373-2023 by Audit Scotland providing details of the External Auditors Annual Report.

The Sub-Committee and Board:-

(i) noted the content of the report.

VII

 

There was submitted Report No 374-2023 by the Executive Director of Corporate Services reviewing the Treasury Management activities for the period 1st April, 2023 to 30th September, 2023.

 

The Sub-Committee and Board:-

 

(i) noted the content of the report.

 

VIII PROPOSED TIMETABLE OF MEETINGS FOR 2024

There was submitted Report No 375-2023 by the Executive Director of Corporate Services proposing a suggested programme of meetings of the Pension Sub-Committee and Pension Board in 2024.

The Sub-Committee and Board:-

(i) examined the dates set out in the timetable in Appendix 1 and agreed the proposed programme of meetings.

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 FUND

(a) SUMMARIES OF INVESTMENTS AND TRANSACTIONS 1STJULY TO 30TH SEPTEMBER, 2023

There was submitted Report No 363-2023 by the Executive Director of Corporate Services reviewing the investment activities of Tayside Pension Funds five Fund Managers for the quarter 1st July, 2023 to 30th September, 2023 and summarising the transactions of each Fund Manager and showing the market values of the Pension Fund.

The Sub-Committee and Board:-

(i) noted the information contained therein with regard to the performance of the Tayside Main Fund and their Fund Managers.

(b) TAYSIDE PENSION FUND PERFORMANCE SUMMARY

There was submitted Report No 376-2023 by the Executive Director of Corporate Services reviewing the investment performance of the Funds investment managers for the quarter to 30th September, 2023. 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:-

(i) noted the information contained therein with regard to the performance of the Tayside Main Fund and their Fund Managers.

(c) OVERVIEW OF OUTCOMES OF ACTUARIAL VALUATION AT 31ST MARCH, 2023

There was submitted Report No 377-2023 by the Executive Director of Corporate Services updating the Sub-Committee and Board on the preliminary results of the actuarial valuation of Tayside Pension Fund at 31st March, 2023.

The Sub-Committee and Board:-

(i) noted the content and recommendations of the actuarial presentation.

X SOCIALLY RESPONSIBLE INVESTMENT - SIX MONTHLY REPORT

There was submitted Report No 378-2023 by the Executive Director of Corporate Services 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 (Article XV of the Minute of Meeting of the Pension Sub-Committee of the Policy and Resources Committee of 20th March 2023, Report No 97-2023 refers).

The Sub-Committee and Board:-

(i) noted the information contained within the report with regards to the activities of the Fund Managers during the six-month period ended 30th September, 2023.

XI ANNUAL ASSESSMENT OF INVESTMENT ADVISORY SERVICES 2023

There was submitted Report No 379-2023 by the Executive Director of Corporate Services providing information on the annual assessment of investment advisory service performance undertaken by Fund Officers as required by the Competition and Markets Authority.

The Sub-Committee and Board:-

(i) noted the content of the report.

XII INVESTMENT MANDATE EVALUATIONS

There was submitted Report No 380-2023 by the Executive Director of Corporate Services detailing the outcome of the procurement exercises undertaken to enable successful selection and appointment of the following investment mandates:-

- Diversified Markets Manager

- Multi Asset Credit Manager

- Buy and Maintain Bond Manager

The Sub-Committee and Board:-

(i) noted the content of the report; and

(ii) approved the appointment of the preferred investment managers, and for the subsequent transition of assets.

XIII PRESENTATION

Jeremy Podger and David Barber from Fidelity gave a short presentation to the Sub-Committee and Board.

After Mr Podger and Mr Barber 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.