Pension Sub-committee And Pension Board - 23/02/2009

At a MEETING of the SUPERANNUATION INVESTMENT SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE held at Dundee on 23rd February, 2009.

APPENDIX I

Present:-

BAILIES

COUNCILLORS

Bailie George REGAN, Convener, in the Chair.

Unless marked thus * all items stand delegated.

I APOLOGIES AND SUBSTITUTES

It was reported that Councillor Roberts was substituting for Bailie Sawers for the purposes of this meeting.

II MINUTE OF MEETING OF 17TH NOVEMBER, 2008

The minute of meeting of the Superannuation Investment Sub-Committee of 17th November, 2008 was submitted and approved.

III TAYSIDE VALUATION FUNDS - ACTUARIAL VALUATION AS AT 31ST MARCH, 2008

There was submitted Report No 110-2009 by the Head of Finance updating the Committee on the Actuarial Valuation of the Tayside Superannuation Fund and the Tayside Transport Superannuation Fund as at 31st March, 2008.

The Committee noted the information detailed in the report.

IV TAYSIDE SUPERANNUATION FUNDS BUSINESS PLAN 2009/2010

There was submitted Report No 43-2009 by the Head of Finance introducing the sixth Annual Business Plan for the Tayside Superannuation Funds.

The Sub-Committee agreed to note the information within the report and approved the 2009/2010 Business Plan which applied to the administration and management of the Tayside Superannuation Fund and the Tayside Transport Superannuation Fund.

V STATEMENT OF INVESTMENT PRINCIPLES ANNUAL REVIEW

There was submitted Report No 42-2009 by the Head of Finance reviewing Statements of Investment Principles for the Tayside Superannuation Fund and the Tayside Transport Superannuation Fund.

The Sub-Committee agreed to note the information within the report and approve the Statements of Investment Principles for both the Tayside Superannuation Fund and the Tayside Transport Superannuation Fund.

VI FUNDING STRATEGY STATEMENT

There was submitted Report No 44-2009 by the Head of Finance reviewing the Funding Strategy Statements for the Tayside Superannuation Funds.

The Sub-Committee agreed to approve the Funding Strategy Statements for Tayside Superannuation Fund and Tayside Transport Superannuation Fund.

The Sub-Committee 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.

VII TAYSIDE SUPERANNUATION FUNDS

(a)                                        PERFORMANCE SUMMARIES

There was submitted Report No 111-2009 by the Head of Finance reviewing the investment performance of the Main Fund's four Fund Managers (excluding Property) for the quarter to 31st December, 2008 and considering the performance of the Transport Fund which shared two of those Managers.

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

(b)                                        PERFORMANCE SUMMARY (PROPERTY PORTFOLIO)

There was submitted Report No 112-2009 by the Head of Finance reviewing the investment performance of the Property Portfolio managed by Schroder Property Investment Management Ltd, for the quarter to 31st December, 2008 and for the twelve month period to the same date.

The Sub-Committee noted the information contained therein with regard to the performance of the Property Portfolio managed by Schroder Property Investment Management Ltd.

(c)                                       SUMMARIES OF INVESTMENTS AND TRANSACTIONS

There was submitted Report No 561-2008 by the Head of Finance reviewing the investment activities of the Main Fund's five Fund Managers for the quarter to 31st December, 2008. The Transport Fund shared three of these managers and their transactions were included.

The report summarised the transactions of each Fund Manager and showed the market values of the Main and Transport Fund.

The Sub-Committee noted the information contained therein with regard to the activities of the Tayside Superannuation Fund and Tayside Transport Superannuation Fund and their Fund Managers.

(d)                                       QUARTERLY FUNDING REPORT

There was submitted Report No 114-2009 by the Head of Finance reviewing the current funding level of the Funds as assessed by Barnett Waddingham, the Fund Actuary.

The Sub-Committee noted the report by Barnett Waddingham.

VIII PRESENTATION - REVIEW OF ALLIANCE BERNSTEIN

Graeme Griffiths, Senior Portfolio Manager and Frances Smyth, Director of Client Relations (Institution and Investments), of Alliance Bernstein gave a short presentation reviewing its fourth quarter performance for 2008 in respect of the Tayside Superannuation Fund, and outlining a review of its portfolio strategy for the future.

It was noted that this strategy sought to minimise areas of high risk whilst retaining opportunities for the future, and they were confident of the Fund's performance in the longer term.

After Mr Griffiths and Ms Smyth had made their presentation and answered questions from members of the Sub-Committee, they were thanked for their presentation by the Convener.

George REGAN, Convener.