Pension Sub-committee And Pension Board - 26/06/2023

At a JOINT MEETING of the PENSION SUB-COMMITTEE of the POLICY AND RESOURCES COMMITTEE AND THE PENSION BOARD held remotely on 26th June, 2023.

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 apologies had been received from Councillor Crichton.

III MINUTE OF PREVIOUS MEETING

The minute of meeting of 20th March, 2023 was submitted and approved.

It was noted that with regards to Article V of the minute (Risk Register, Report No 86-2023 refers) that an update on the risk to the Fund if the National Care Service was implemented would be provided to members when available, and incorporated into the Risk Register.

IV TAYSIDE PENSION FUND RISK MANAGEMENT POLICY & STRATEGY

There was submitted Report No 195-2023 by the Executive Director of Corporate seeking approval for the review of the Risk Policy and Strategy of Tayside Pension Fund.

The Sub-Committee and Board:-

(i)                     approved the Risk Policy and Strategy, noting that there were no changes.

V RISK REGISTER

There was submitted Report No 196-2023 by the Executive Director of Corporate Services seeking  approval for the Quarterly Risk Register for Tayside Pension Fund which was updated on 9th June, 2023, noting that there were 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.

VI TAYSIDE PENSION FUND INTERNAL AUDIT REPORTS BUSINESS RESILIENCE &PENSIONS DASHBOARD

There was submitted Report No 197-2023 by the Executive Director of Corporate Services presenting the Audit Reports prepared by the Funds Internal Auditor, PricewaterhouseCoopers (PwC).

The Sub-Committee and Board:-

(i)                     noted the content of the report on the audit exercises undertaken; and

(ii)                    approved the management response.

VII TAYSIDE PENSION FUND INTERNAL AUDIT ANNUAL REPORT 2022/23

There was submitted Report No 198-2023 by the Executive Director of Corporate Services providing information on the Annual Audit Report for 2022/23 prepared by the Funds Internal Auditor, PricewaterhouseCoopers (PwC).

The Sub-Committee and Board:-

(i)                     noted the content of the report as well as the content of the appended reports on specific audit exercises undertaken; and

(ii)                    approved the management response.

VIII PENSION ADMINISTRATION PERFORMANCE QUARTERLY UPDATE TO 31ST MARCH, 2023

There was submitted Report No 199-2023 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. 

IX TAYSIDE PENSION FUND ANNUAL GOVERNANCE AND GOVERNANCE COMPLIANCE STATEMENTS

There was submitted Report No 200-2023 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, 2023.  The report also set out the governance arrangements of Tayside Pension Fund and the extent to which it complied with regulations.

The Sub-Committee and Board:-

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

(ii)                    instructed the inclusion of the statements in the Annual Accounts for the year to 31st March, 2023.

X TAYSIDE PENSION FUND UNAUDITED 2022/23 ACCOUNTS

There was submitted Report No 201-2023 by the Executive Director of Corporate Services providing some additional commentary on the unaudited Annual Accounts 2022/23 which were being submitted to the Sub-Committee and Board along with this report.

The Sub-Committee and Board:-

(i)                     noted the content of the covering report;

(ii)                    noted the unaudited Annual Accounts which had been submitted along with this report in Appendix A;

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

(iv)                   instructed 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 FUND

(a)                    TAYSIDE PENSION FUND PERFORMANCE SUMMARY

There was submitted Report No 202-2023 by the Executive Director of Corporate Services reviewing the investment performance of the Funds investment managers for the quarter to 31st March, 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.

(b)                    SUMMARIES OF INVESTMENTS AND TRANSACTIONS 1ST OCTOBER TO 31ST MARCH 2023

There was submitted Report No 163-2023 by the Executive Director of Corporate Services reviewing the investment activities of Tayside Pension Funds five Fund Managers for the quarter to 1st January, 2023 to 31st March, 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.

XII SOCIALLY RESPONSIBLE INVESTMENT - SIX MONTHLY REPORT

There was submitted Report No 203-2023 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 (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 regarding the activities of the Fund Managers during the six-month period ended 31st  March, 2023.

XIII ALTERNATIVE INVESTMENT MANDATE PROCUREMENT EXERCISE UPDATE

There was submitted Report No 204-2023 by the Executive Director of Corporate Services presenting an update on the recommended plan to enable successful selection and appointment of a diversified markets manager for Tayside Pension Fund.

The Sub-Committee and Board:-

(i)                     noted the content of the report.

XIV PRESENTATION

Sarah Cockburn, Olivia Docker and Lucinda Liss from Schroders gave a short presentation to the Sub-Committee and Board.

After Ms Cockburn, Ms Docker and Ms Liss 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.