Issue - meetings
Independent Advisor Report on Market Outlook and Investment Managers Performance for Quarter Ending 31 December 2018
Meeting: 13/03/2019 - Pensions Committee (Item 6)
Minutes:
Colin Robertson, Independent Adviser presented the Market Outlook Update in respect of the performance of the markets and the Pension Fund investment managers for the third quarter of 2018/19.
The only update to note was that:
- Equity markets that fell last quarter have now recovered which has benefitted the Fund. The market is very erratic - this too has had an impact on government yield bonds.
In response to concerns about Baillie Gifford’s report, the following points were raised:
o The Diversified Growth Fund (DGF) is a cash plus strategy but invests in equities whilst the Multi-Asset Fund (MAC) fund also underperformed, and the Committee was advised that all 5 funds should be considered together as cash plus funds and one of them also has an equity type exposure;
o The Chair inquired about the two Absolute Return Bonds funds which had lost money and it was pointed out that these could be considered a suitable source of cash to finance a potential investment in infrastructure due to the lower performance prospects of these funds
RESOLVED
To note the Update Report.