Pension Sub-committee And Pension Board - 22/08/2001

At a MEETING of the SUPERANNUATION INVESTMENT SUB-COMMITTEE OF THE FINANCE COMMITTEE held at Dundee on Wednesday 22nd August, 2001.

Present:-

COUNCILLORS

In Attendance:-

Mr W Gowans, Tayside Full Time Trade Union Officers' Group

Councillor STURROCK, Convener, in the Chair.

The minute of meeting of this Sub-Committee of 20th June 2001 was noted.

Unless marked thus * all items stand delegated.

I SEMINAR - THE 13TH LGC PUBLIC SECTOR PENSION FUND INVESTMENT SEMINAR, SOUTHAMPTON - 6/7TH SEPTEMBER 2001

It was reported that LGC Events had arranged their 13th Public Sector Pension Fund Investment Seminar for 6/7th September 2001. These Seminars had proved highly informative for both Elected Members and Officers and the Sub-Committee's instructions were sought regarding attendance at this year's Seminar. The cost was 650 per delegate excluding travel and subsistence.

The Sub-Committee agreed that an appropriate officer of the Finance Department be authorised to attend subject to the approval of the Director of Finance.

The Sub-Committee resolved under Section 50(a)(4) of the Local Government (Scotland) Act 1973 that the public and press be excluded from the meeting in order that the undernoted items of business may be considered in private on the grounds that the involved the likely disclosure of exempt information as defined in paragraphs 4, 6 and 11 of Part 1 of Schedule 7(a) of the Act.

II TAYSIDE TRANSPORT SUPERANNUATION FUND

(a) W M PERFORMANCE SUMMARIES

There was submitted Report No. 516-2001 by the Director of Finance relating to W M Performance Summaries for both the quarter and the year to 30thJune 2001.

(b) SUMMARIES OF INVESTMENTS AND TRANSACTIONS

There was submitted Report No. 537-2001 by the Director of Finance summarising investments and transactions during the period 1st April to 30th June 2001.

The Sub-Committee noted the information contained herein with regard to the performance of the Transport Fund managed by Schroder Investments Management Limited.

III TAYSIDE SUPERANNUATION FUND

(a) W M PERFORMANCE SUMMARIES (BALANCED PORTFOLIOS)

There was submitted Report No. 515-2001 by the Director of Finance relating to W M Performance Summaries for both the quarter and the year to 30th June 2001.

The Sub-Committee noted that two Fund Managers had out-performed the W M Index both for the quarter and the year to 30th June 2001. The Third Fund Manager had under-performed the index for both the quarter and the year to 30th June 2001. The Director of Finance advised that there had been management changes within the third Fund Manager and it was proposed that the new Management Team be invited to the next Superannuation Sub-Committee meeting. It was important for the new team to improve the Fund Manager's performance ahead of next year's review.

(b) PERFORMANCE SUMMARY (PROPERTY PORTFOLIO)

There was submitted Report No. 517-2001 by the Director of Finance relating to Schroder Property Investment Management Limited performance for both the quarter and the year to 30th June 2001.

The Sub-Committee noted the information contained in the above reports which included the investment performance of the property portfolio managed by Schroder Property Investment Management Limited for the quarter to 30th June 2001 and for the twelve month period to the same date.

(c) SUMMARIES OF INVESTMENTS AND TRANSACTIONS

There was submitted Report No. 536-2001 by the Director of Finance summarising investments and transactions during the period 1st April to 30th June 2001.

IV PRESENTATION

 

Mr Mike Clarke and Ms Jenny Buck of Schroder Property Investment Management Limited gave a presentation on the present property market, the current portfolio and performance, fund investments since 30th June 2001 and current strategy. Despite the overall slowdown in the economy, property was still a sound investment. The speakers referred to the investment guidelines and explained the reasons for proposed changes. The Tayside Property Portfolio performance was ahead of the CAPS Pooled Pension Fund Index both for the year and the three years to 30th June 2001.

 

The speakers answered questions and were thanked by the Convener.

 

V AMENDMENT TO INVESTMENT GUIDELINES - PROPERTY

There was submitted Report No. 538-2001 by the Director of Finance describing proposed changes to the investment guidelines to allow the Property Manager access to a wider range of investment opportunities. These changes had already been referred to in the above presentation.

The Sub-Committee approved the changes to the Investment Guidelines as detailed in Appendix I of the report.

Julia STURROCK, Convener.