The full agenda, reports and minutes of today’s Strathclyde Pension Fund Committee provide more information on topics that include the following.
The Committee approved our Admin Strategy (item 3c). This key, new document sets out how we will work in partnership with our scheme employers and our respective roles and responsibilities.
Included in our 2010/11 Business Plan (item 3a) is our move from Queen Street to new premises. We expect to move to the Capella Building in Glasgow’s International Financial Services District in July.
As at 31 December 2009 (when the Fund’s total asset value was £9,622m) the Fund was estimated to be 84.3% funded. The Fund’s investment return for the quarter to 31 December 2009 was 3.7% compared to 2.8% for the average UK pension fund, and the Fund’s total asset value was £9,408m on 31 January 2010.
Following the three-yearly review of the Fund’s investment strategy and structure:
• Hymans Robertson has been reappointed as our investment consultants.
• Plans are being put in place to prepare for any reduction in the yield spread on the iBoxx over the 10 year corporate bond index.
• The tender process for the three proposed property mandates has identified three lists of investment managers who will be invited to submit full tenders.
• The review of the Fund’s participation in class action litigation has concluded that the Fund should continue to monitor developments and should not rule out taking a more active role at a future date, particularly in European litigation.
• The Committee approved a “new opportunities” investment of £5 million in the Panoramic Growth Equity Enterprise Capital Fund I.
A review of the Fund’s adherence to the Principles for Responsible Investment in Private Equity and Property has concluded that our managers are on message.
We have updated the existing Statements of Investment Principles (item 4f) and the Elected Member Training Plan (item 5d).
Quarterly administration performance in Oct – Dec 2009 was slightly below target for retirement processes reflecting the high volumes resulting from the various, recent voluntary severance packages on offer and the additional complexity of two pension accrual rates.
Two new employers were given permission to participate in the Fund as admitted bodies: East Dunbartonshire Citizens Advice Bureau and Forth & Oban Ltd.