Issue - meetings

The item was introduced by Paul Higginbotham (Investment Analyst). He informed members the portfolio value was just under £3billion and there had been growth of 0.48 per cent in the previous quarter. For the year June 2023 to June 2024, this represented a ten per cent increase. Paul Higginbotham said this was mainly due to the ongoing resilience of global equity markets. He drew members’ attention to the section of the report that outlined where investments had been made, and the summary of the Fund’s cashflow requirements. This was guided by the Strategic Asset Allocation model and advice from Hymans Robertson. The target cash limit of £50million was currently being exceeded and it was nearer £60million.

Details of votes that had taken place on the Fund’s behalf were outlined in the report.

Paul Higginbotham said 17.5 per cent of the Fund’s assets had been invested into lower risk income assets, with a longer term target of 25 per cent. There had been a recent commitment to investing with Border to Coast’s new UK real estate fund, which would be funded by the Fund’s existing holdings. A total of £4.43million had been invested into the new Border to Coast Climate Opportunities Fund, which came under the category of infrastructure and private equity and further demonstrated the Fund’s desire to pursue responsible investment.

Responding to a question from Mike Snow, Paul Higginbotham said that although there had been a negative impact on the bond market following a spike in inflation, the Fund’s longer term liabilities had not been too seriously affected. This was mainly due to global liquidity. He added the portfolio had recovered well following that spike. Chris Norton said the portfolio would be badly hit if the Fund had been forced to sell more volatile assets out of distress. However there were failsafes in place to prevent this happening and the situation was being managed.

Members noted the contents of the report.