Agenda item

The Committee is asked to note the report.

The Head of Pensions presented the report which detailed the Fund’s funding position, market value, asset allocation, investment performance for the quarter ending 30 June 2023.

Members noted that by the end of the quarter to 30 June 2023, the Fund’s total market value had increased by £61.3m to £3,112.7m and over the quarter, total Fund assets produced a positive return of 1.5%, which was equal to the strategic benchmark. It was reported that performance over the 3 years to 30 June 2023 was 6.0% annualised which is 0.1% ahead of benchmark. The fund was still regarded to be in a healthy position.

The Independent Adviser (IA) gave a detailed presentation of his report He recognised there were a number of long term issues such as demographics had changed and there was a strong desire for decarbonisation. Inflation remained an issue for the economy. 

He informed the committee that there was potentially some value in short term lending, as that area was beginning to look quite attractive, based on the actuarial required rate of return.  The IA felt that interest rates were near their peak and a locked in rate for seven years was an attractive investment if you could find a suitable investment fund to invest through. The Committee noted that the high alpha global fund had performed very well and was ahead of its benchmark since inception. 

Members welcomed the report and questioned the use of Artificial Intelligence (AI) and green technology.  The committee discussed the impact in terms of productivity gains, as some members felt that AI ongoing technological advancements would strive to remove barriers.  The IA explained that long term investment in education was the key, as the UK had performed poorly in that area 

Julie Masci, Grant Thornton (GT) presented the Pension Fund Audit Findings report and advised the committee GT would be issuing an unqualified opinion on the financial statement, and overall she felt it was a positive picture.   It was explained that the audit was progressing well.  Members were advised that the newly appointed external auditors were also actively engaged with GCC. 

During the discussion, the Chair requested that in the future the Audit Findings report be a separate item on the agenda. 

The Committee agreed that the GT Audit Findings report should be commended to the Audit & Governance Committee for its approval. 

Resolved

That the Committee noted in accordance with the regulations, the Fund’s position and governance activities as at the 30 June 2023.   

That the Committee noted the performance of the investments as detailed in report and associated appendices.

That the Committee acknowledged the Audit Findings Report provided by Grant Thornton for year to 31 March 2023 and requested it be commended to the Audit & Governance Committee.