The Director of Pensions introduced the report to members. The purpose of the report was to provide Board members with a copy of a report on proposed revisions to the Fund’s strategic asset allocation recently taken to Pensions Committee.

Officers informed Board members that investments are allocated geographically and a reweighting closer to global index weights was recommended. Currently bonds are all UK based but the fund was looking to diversify the range of fixed income instruments and broaden exposures globally.

Officers were focused on minimising the costs of transitions. Income was to be harvested from equity and a cash management forecast had been developed for the next 5 years, which recommended targeting 60% of contractual income.

In response to an inquiry in relation to the risks of modern slavery occurring in supply chains, officers informed Board members that EU companies are to be required to make formal declarations regarding their supply chains which was raising the profile of the issue., It is an important element of the Fund’s RI policy.  On behalf of members of LAPFF (which included MPF), PIRC was engaging with a range of businesses on this matter.

Resolved – That the report be noted.