Pension Sub-committee And Pension Board - 20/08/2012

At a MEETING of the SUPERANNUATION INVESTMENT SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE held at Dundee on 20th August, 2012.

APPENDIX II

Present:-

BAILIES

COUNCILLORS

Also in attendance, Shane Mochine-Cox, Trade Union representative.

Bailie Willie SAWERS, Convener, in the Chair.

Unless marked thus * all items stand delegated.

I DECLARATION OF INTEREST

No declarations of interest were made.

II SCOTTISH LGPS TRAINING - OCTOBER 2012

There was submitted Agenda Note AN139-2012 advising that a training seminar was being organised by Fife Council for all Scottish LGPS members. The seminar would take place in Baillie Gifford's offices in Edinburgh on 24th October, 2012.

The Sub-Committee agreed that all members of the Superannuation Sub-Committee be authorised to attend this seminar.

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.

III TAYSIDE SUPERANNUATION FUNDS

(a) PERFORMANCE SUMMARIES

There was submitted Report No 315-2012 by the Director of Corporate Services relating to performance summaries for the quarter, twelve months and three years to 30th June, 2012.

This report reviewed the investment performance of the Main Fund's five Fund Managers (including Property) for the quarter to 30th June, 2012. It also considered the performance of the Transport Fund which shared three of these managers.

The report compared investment performances of the Funds with the Funds' specific benchmarks which consist 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) SUMMARIES OF INVESTMENTS AND TRANSACTIONS

There was submitted No 304-2012 by the Director of Corporate Services summarising investments and transactions during the period 1st April to 30th June, 2012 and reviewing the investment activities of the Main Fund's six Fund Managers for the quarter to 30th June, 2012. 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.

(c) QUARTERLY FUNDING REPORT

There was submitted Report No 316-2012 by the Director of Corporate Services which considered a report by the Fund Actuary which reviewed the current funding levels of the Funds.

The Sub-Committee noted the report by the Fund Actuary.

IV PRESENTATION

Graeme Rutter and Tony Docherty of Schroders Property gave a short presentation.

Graeme Rutter gave an overview of the UK element of the Fund, noting that although performance was largely stable, it was unrealistic to rely upon economic growth to deliver property returns. Leverage remained a key consideration, but key stock picking and asset management would create out‑performance.

Thereafter, Tony Docherty gave an overview of the European element of the Fund, noting that this had been a volatile and challenging market, however, the long-term outlook was positive.

In conclusion, a review of the whole portfolio was given and members noted that the overall strategy was to reposition the portfolio for the current investment environment.

After they had completed their presentation and answered questions from members of the Sub‑Committee, they were thanked for their attendance and withdrew.

Willie SAWERS, Convener.

APPENDIX III

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