Issue - meetings

The item was introduced by Victoria Moffett (Lead Commissioner, Pensions and Investments), who said the funding level for the Fund remained above 100 per cent due to the falling long-term inflation expectation that had already been mentioned during the meeting, and because of a decrease in liabilities. The overall funding value had decreased slightly however, and net cashflow was broadly neutral. Victoria Moffett said there may be the possibility of negative cashflow in the future if inflation rates remained high, as this would increase the amount the Fund had to pay out. Members were told that the Pension Fund Investment Sub Committee had agreed to split the Fund’s new private debt allocation into two separate funds to diversify the risks. This was done in the hope it would reduce the volatility of the Fund.

Members were informed that since the last meeting a new Chief Investment Officer had been appointed at Border to Coast. Victoria Moffett said Border to Coast had updated its responsible investment and climate change policies. The voting rights of the portfolio holders at Border to Coast, and also the holders at Legal and General, had been considered by the Investment Sub Committee. Responding to a point raised by the Chair, Victoria Moffett said 40 per cent of the Fund was handled by Border to Coast and an additional 40 per cent by Legal and General.

Victoria Moffett said the annual report and accounts remained in draft format as there had been delays due to external auditor capacity and delays in receiving guidance from central government. The Competition Markets Authority objectives had been signed off and submitted.

The Chair said the contents of the Fund’s AGM had been excellent, but felt the room where it was held was not the most suitable.