Issue - meetings

Economic and Market Update and Investment Strategy and Manager Summary

Meeting: 11/02/2020 - Clwyd Pension Fund Committee (Item 107)

107 Economic and Market Update and Investment Strategy and Manager Summary pdf icon PDF 102 KB

To provide Committee Members with an economic and market update and performance of the Fund’s investment strategy and Fund Managers

Additional documents:

Decision:

RESOLVED:

(a)  The Committee discussed and commented on the Market and Economic update for the quarter ended 31 December 2019, which effectively sets the scene for the Investment Strategy and Manager Performance summary.

(b)  The Committee discussed and commented on the Investment Strategy and Manager Performance summary for the quarter ended 31 December 2019.

 

Minutes:

                      Mr Harkin gave an update on the recent outbreak in the coronavirus and what it means in context of a pension fund. He said that markets had seen significant falls in China and emerging markets initially, however markets had since recovered. The impact in immediate terms on the bond and equity markets were subject to sentiment. He stated that if there are real severe falls in markets, the Fund has protection through the cash and risk management framework. Mr Harkin then emphasised that the biggest question is whether there is a big economic lag effect i.e. how many countries rely on China to build and buy things for them around manufacturing, for example Apple, and therefore there could be a wider impact such as on the US stock market.

                      He added that the Fund value tipped over £2 billion at the end of December. The Fund is going through some changes in the investment strategy and implementing them and are in a healthy position despite market volatility.

                      The report was noted and no further questions were asked.

RESOLVED:

(a)  The Committee discussed and commented on the Market and Economic update for the quarter ended 31 December 2019, which effectively sets the scene for the Investment Strategy and Manager Performance summary.

(b)  The Committee discussed and commented on the Investment Strategy and Manager Performance summary for the quarter ended 31 December 2019.