Issue - meetings

(a)       To note and discuss the Economic and Market Update 30 June 2018.

(b)       To note how the information in the report effectively “sets the scene” for what the Committee should expect to see in the Investment Strategy and Manager Summary report in terms of the performance of the Fund’s asset portfolio.

Mr Harkin gave the Committee an economic and market update over the last quarter. Page 247 reflects a snapshot of the market statistics over a 3 month, 1 year and 3 year period where there has been a significant amount of positive numbers from growth assets.

Mr Harkin highlighted the following key points;

·         Equities have had a positive quarter again despite the daily volatility,

·         September has already been volatile and gains are still tilted towards growth assets,

·         UK and North American equities are strong,

·         Emerging and frontier markets have been weaker with financial pressures from China, Turkey and Argentina,

·         Developed markets are on an upward trend, however emerging markets are now tailing off which is different to 2017 when both performed consistently well,

·         The bond assets reflect a series of negative returns with rising yields and cheaper assets

·         Sterling is under a lot of pressure due to the Brexit negotiations however UK equity returns are strong because the larger businesses in the UK are multinationals; therefore converting to sterling is boosting their profits.

Cllr Llewelyn Jones asked whether the Fund has any exposure to South America. Mr Harkin confirmed that we do through emerging market equity.

RESOLVED:

(a)       To note and discuss the Economic and Market Update 30 June 2018.

(b)       To note how the information in the report effectively “sets the scene” for what the Committee should expect to see in the Investment Strategy and Manager Summary report in terms of the performance of the Fund’s asset portfolio.