Meeting documents

To consider a report by the Chief Financial Officer (attached).  This includes Strategic Fund Allocation for the period ending 31 December 2017, cash flow and performance analysis and other topical issues.

The Committee considered a report by the Pension Fund Administrator on the asset

allocation, valuation and overall performance of the Fund’s assets up to 31

December 2017. 

The Fund underperformed its benchmark over the financial year to 31 December 2017 by 0.6% but continued to outperform its benchmark over the longer term, with the short term underperformance largely driven by currency movements.  The performance of UK equites had been reasonable, and all three global equities managers were now slightly ahead of their benchmarks since inception in December 2015.  The Fund’s holdings in corporate bonds had been reduced in line with the revised strategic asset allocation but had performed reasonably well.

Recent property transactions were highlighted - the sale of 131 Great Suffolk Street, London for £4.9m, the purchase of Greenford industrial estate, West London for £8.4m and the completion of the purchase of a portfolio of four public houses and a restaurant in Central London for £14.6m.

The Independent Adviser gave an update on the re-negotiations with Insight Investments, the Fund’s Liability Driven Investment (LDI) manager.  A reduction in base fees had been agreed and was expected to save approximately £200k annually.  Discussions continued to agree an updated benchmark and revised performance fee mechanism to better incentivise performance, and also improvements to reporting were sought.

Resolved

1.         That the activity and overall performance of the Fund be noted.

2.         That the progress in implementing the new strategic asset allocation be noted.

3.         That the revised Investment Strategy Statement (ISS) be approved for publication on the Fund’s website.