Issue - meetings

(a)        Noted and discussed the investment strategy and manager performance in the Investment Strategy and Manager Summary 30 September 2018.

(b)        The Committee considered the information in the Economic and Market Update report to provide context in addition to the information contained in this report.

Mr Buckland gave a brief update on this item of the agenda, page 336 and 337 reflects a more detailed portfolio paper that was prepared at the end of 30 September 2018. Looking at the overall performance of the asset allocation on page 337, Mr Buckland wanted to highlight a couple of allocations that were underweight/overweight for example the LDI portfolio was overweight. Mr Buckland noted that private credit was slightly underweight which is due to this allocation being new to the Fund. On page 339, the performance summary of the Fund is set out at 30 September 2018. The first thing to highlight is the exceptional performance of the Fund for all periods. The Fund performed 11.8% against a target of 10.3% over 3 years. There were some significant positives in terms of individual areas, such as positive returns for equities and the best ideas portfolio which performed 11.5% against a target of 5.3%.

The Fund suffered over October 2018 and the performance results are almost entirely red. The total market value dropped from £1,886m to £1,839m, a fall of just under 2.5%, however the diversification has benefited the Fund somewhat over this period.

RESOLVED:

(a)        Noted and discussed the investment strategy and manager performance in the Investment Strategy and Manager Summary 30 September 2018.

(b)        The Committee considered the information in the Economic and Market Update report to provide context in addition to the information contained in this report.