Decision details

(Exempt information as defined in paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972. It was considered that in all the circumstances of the case the public interest in maintaining the exemption outweighed the public interest in disclosing the information).

The Committee considered a report on the performance of the Fund up to the end of December 2016 which included the following:

·  An update on the economic backdrop;

·  The total Fund return as at 31^st December 2016;

·  An update on the performance of equities, credit, real estate, infrastructure and private equity:

·  Asset allocation;

·  The funding ratio up to December 2016;

·  Details of contributions net of benefits and investment income.

An additional summary and overview of performance was circulated to members of the Committee at the meeting. In considering the report the Committee noted that regulatory changes in January 2018 would classify local authorities as 'retail investors' which were not considered suitable to invest in infrastructure. Mr Smith reported that discussions were underway regarding the criteria, with a view to determining whether authorities which could demonstrate they have sufficient expertise, would be able to "opt up" and continue to invest in infrastructure.

It was also noted that the Fund was performing well with strong growth potential across all asset allocations.

Resolved:

1.  That the report and updates on performance presented at the meeting
are noted.

2.  That the Committee be kept informed of developments regarding the
regulatory changes which are due to come into operation in January 2018 and their implications for the Fund.