In relation to Iceland (at 4.13 of the report) the payments from Heritable Bank were happening as scheduled, in fact ahead of the original schedule. The situation regarding Glitnir (at 4.12 of the report) was more complex as the Icelandic courts had given preferred status to local authority creditors. However other creditors had challenged this position.
Cllr Harry Smith (who often winds people up) asked if Glitnir was subject to a winding up order?
The answer given was that the money would be restored to the owners. Cllr Harry Smith asked which people owned the bank?
The answer was that the money was segregated and ring fenced if they kept their priority status.
Cllr Harry Smith said it was “a hell of a difference if we don’t”.
The Chair asked if people agreed the recommendations which they did.
Report 13 was on the investment performance for 2010/2011. The officer said it followed a detailed report to the Investment Monitoring Working Party but that this formal report related to the performance of the fund relevant to benchmarks chosen to be the best match. 8.9% had been achieved over 12 months compared to a benchmark of 7.5%. At 4.2 it showed the average return of local authority pension funds was 8.2%. 4.7 referred to the Fund’s longer term performance. The chair asked if there were any questions. Cllr Ann McLachlan said the Fund should be congratulated.
The Chair agreed and said he had heard at the Investment Monitoring Working Party that the Fund now exceeded £5 billion and this should be noted.