Pension Sub-committee And Pension Board - 15/11/2010

At a MEETING of the SUPERANNUATION INVESTMENT SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE held at Dundee on 15th November, 2010.

APPENDIX I

Present:-

Bailie Willie SAWERS

Councillor Jimmy BLACK

Councillor Alan ROSS

Councillor Kevin KEENAN

Bailie Willie SAWERS, Convener, in the Chair.

Unless marked thus * all items stand delegated.

I APOLOGIES AND SUBSTITUTES

Apologies had been submitted by Bailie Regan, Bailie Wallace and Councillor Dawson.

II PROPOSED TIMETABLE OF MEETINGS FOR 2011

There was submitted Report No 673-2010 by the Director of Finance proposing a suggested programme of meetings of the Superannuation Investment Sub-Committee to cover investment performance and issues arising in 2011.

The Sub-Committee agreed the proposed programme of meetings.

III SOCIALLY RESPONSIBLE INVESTMENT - SIX MONTHLY REPORT

There was submitted Report No 674-2010 by the Director of Finance reviewing the progress by the Fund Managers regarding the positive engagement policy on Environmental, Social and Corporate Governance approved by the Sub-Committee on 17th November, 2008.

The Sub-Committee noted the information contained within the report with regard to the activities of the Fund Managers during the six month period ended 30th September, 2010.

IV STATEMENT OF INVESTMENT PRINCIPLES REVIEW

There was submitted Report No 676-2010 by the Director of Finance reviewing Statements of Investment Principles for the Tayside Superannuation Fund and the Tayside Transport Superannuation Fund.

The Sub-Committee noted the information within the report and approved the Statements of Investment Principles for both the Tayside Superannuation Fund and the 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 in order that the undernoted items of business be considered in private 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.

V TAYSIDE SUPERANNUATION FUNDS

(a) PERFORMANCE SUMMARIES

There was submitted Report No 671-2010 by the Director of Finance relating to Performance Summaries for quarter, twelve months and three years to 30th September, 2010 reviewing the investment performance of the Main Fund's four Fund Managers (excluding Property) for the quarter to 30th September, 2010. It also considered the performance of the Transport Fund which shared two of these managers.

The report compared investment performances of the Funds with the Funds' specific benchmarks which consisted of various stock market indices.

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 672-2010 by the Director of Finance relating to performance for the quarter, twelve months and three years to 30th September, 2010 reviewing the investment performance of the Property Portfolio for the periods to 30th September, 2010.

The report compared investment performances with an appropriate benchmark, the IPD Pooled Property All Balanced Funds Median.

The Sub-Committee noted the information contained herein with regard to the performance of the Property Portfolio.

There was submitted Report No 668-2010 by the Director of Finance summarising investments and transactions during the period 1st July, 2010 reviewing the investment activities of the Main Fund's five Fund Managers for the quarter to 30th September, 2010. The Transport Fund shared three of these managers and their transactions are 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 670-2010 by the Director of Finance which considered the report by Barnett Waddingham reviewing the current funding of the Funds as assessed by the Fund Actuary.

The Sub-Committee noted the report.

VI FUND MANAGER REVIEW

There was submitted Report No 675-2010 by the Director of Finance reviewing the position of a Fund Manager given the recent performance which had been significantly below benchmark.

The Sub-Committee agreed to review the Fund Manager's performance for the one year to 30th September, 2011 and recommend a change of manager as part of a wider review of structure if this performance was below benchmark.

VII REVIEW OF PERFORMANCE

David O'Hara of Hymans Robertson reviewed the performance of the Funds and the individual managers over the year.

The presentation covered the performance of both Funds and the five individual managers. It was noted that over the last year results had been mixed but, overall, the Fund had performed well.

VIII PRESENTATION

Tom Wright and Fiona MacLeod of Baillie Gifford gave a short presentation.

It was noted that Fund performance had shown positive results and the Sub-Committee were taken through what had helped/hurt the Fund, risk to performance and outlook for the following year.

Willie SAWERS, Convener.

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