Minutes:
The Head of Pensions (LGPS) noted the last meeting of the Local Pension Board was held after the Pension Fund Committee meeting on 14 September 2023 and Board Members had attended the Annual Pension Fund meeting on 9 November 2023. He explained the Board received detailed information on KPIs and updates in respect of regulatory changes that would impact scheme members.
The Chair noted vacancies in respect of the Local Pension Board membership and that Board Members were invited to attend the Committee meetings.
Councillor B Kellett asked as regards Moody’s downgrading China and any impact this would have on the Fund. The Head of Pensions (LGPS) noted China did form part of the Fund’s strategy in terms of investing in the global economy. S Dickson agreed that the Chinese economy was very different to the US or UK economies and noted the Fund’s direct investment in China was relatively small and noted the diverse portfolio of the fund, with the risk as being a relatively small proportion of overall risk.
Councillor J Atkinson asked as regards Local Pension Board Members attending Committee meetings. The Head of Pensions (LGPS) noted that Board members had the opportunity to attend Committee and had done so in the past where there were issues the Board had wished to raise with the Committee.
Councillor K Earley noted the phrase ‘America sneezes and the world economy catches cold’ and asked if it was a similar position with China. A Fletcher noted that problems in China were mainly domestic, with the US having more of a global economy. He noted the importance of China in terms of manufacturing, however, highlighted that the recent issues with their property market were domestic.
He noted the issues with property in China was very different when comparing to other housing problem, such as in Spain previously. He noted the issues were not systemic as they were in the US in 2008 or the EU in the 2010s.
Resolved:
That the verbal update be noted.