Issue - meetings

The committee will consider the Pension Fund’s current asset allocation and further consider recommendations about the investment of cash currently managed in house.

 Members of the committee were asked to consider the Pension Fund’s current asset allocation. The council were holding £30m in cash pending the transition to the new investment strategy and the committee were advised that allocating £25m of the cash to overseas equities would bring the Pension Fund closer to the agreed strategic benchmark. The remaining balance of cash would be used to manage benefit payments. It was clarified that the investment in overseas equities would encompass investment in the emerging markets and not the euro zone. It was suggested that further information on the investment in equities could be given at a future pensions training session.

The Pensions Working Group had met and considered the report and were recommending to the committee that the rebalancing of the Pension Fund be agreed.

RESOLVED

That £25m of the Pension Fund cash currently managed in house be allocated as part of the passively managed portfolio to overseas equities with the decision on the precise regional allocation to be taken by the interim Chief Financial Officer in consultation with the Chair, having taken into account the views of the Pensions Working group.