Agenda item

Consideration was given to graphs showing recent movements in the Stock and Share Indices (for copy see file of Minutes).

Philip Williams, Pension Fund Adviser informed the Committee that Government Bond Yields had been falling for some time and had fallen more steeply from mid-September 2014. As could be seen from the graphs 10 year UST and 10 year UK Gilt had tracked each other closely but UK gilt yields had now fallen more steeply than US yields.

10 year index linked and 30 year index linked yields were being driven by pension funds feeling obliged to ‘de-risk at any price’.

Robbie Bowker, P-Solve added that Pension Schemes and private sector schemes in particular were under pressure to de-risk, however before taking a decision they should to take into account their own individual circumstances, for example the strength of the employer’s position.

James Wall, P-Solve stated that the European Central Bank’s QE programme was pushing up Government Bond Yields.

Resolved:

That the information given be noted.