Minutes:
Joanne Holden, Independent Adviser briefed Members on the impact of Brexit on the Pension Fund’s investments in each asset class.
Members were informed that volatility could be expected over the next few months, however equity markets had recovered and reasonable returns were therefore anticipated in the next quarter. Sterling had fallen in value which may influence inflation, and this could potentially impact upon the Fund’s liabilities. Yields on gilts and government bonds had also fallen. With regard to property, there had been a lot of commentary around the effect on property valuations but it was not possible at present to estimate the long-term impact of this. In the short-term the Fund’s manager may decide it was prudent to value properties more regularly, however it should be noted that the Manager’s approach was to hold properties long-term and therefore there was no need for immediate action.
In conclusion Joanne Holden advised that a ‘knee jerk’ reaction was not necessary but the current situation in the markets would inform the review of the investment strategy.
Following discussion it was Resolved:
That the information be received.