Issue - meetings

To report the following in respect of the three months to 31^st March 2018:

·                Funding Level Update

·                Investment asset allocation

·                Investment performance

·                Investment Update

The Committee considered the Pension Fund Quarterly Update report, presented by Thomas Skeen, which is produced on a quarterly basis. The report provides an update from 31^st May 2018, in respect of the following;

• Funding Level Update;
• Investment asset allocation;
• Investment performance; and
• Investment Update.

The Committee noted the indicative funding position of the Fund was 84%, as of 31 March 2018. This has increased from the most recent valuation level of 79%, in 31 March 2016. It was highlighted that this position was a deterioration from 31 December 2017 at 88.2%, following a stock market fall in the first quarter of 2018. It was noted that this showed just how volatile the value of the Fund can be.

The Independent Advisor gave an overview of the market background from January to March 2018. The month of March was affected by various issues, such as:

• rising inflation in the United States; and
• tension over trade tariffs imposed on China by the United states.

The Independent Advisor noted that March was a negative month for global equities. Overseas buyers had been notably absent from the UK’s markets which could be attributed to the uncertainty surrounding the issue of the United Kingdom leaving the European Union. Finally, it was noted that emerging markets performed well in the period of January to March.

Resolved

That the information provided in respect of the activity in the three months to 31st

March 2018 is noted.