Investment Structure Review
A report prepared by the Chief Finance Officer which reviews the current investment structure and makes recommendations for changes arising from discussion at the Committee’s Investment Away Day.
Supporting documents:
Minutes:
Consideration was given to a confidential report by the Chief Financial Officer which set out the recommendations generated from discussions at the recent Investment Away Day and also various options for the future investment strategy of the Wiltshire Pension Fund.
After a full debate during which various options were examined, it was
Resolved:
That Wiltshire Pension Fund Committee:
a) agrees an aspiration to move the Fund’s equities split to 30% UK / 70% overseas as opportunities arise from changes in the equities mandates
b) will consider the implementation of a dynamic currency hedging programme and requests officers to provide further information to Members to enable them to agree to the procurement of these services, if so minded, at the July committee meeting
c) requests officers to explore the options for implementing an element of the index-tracking against an alternative ‘fundamental’ index with a proposal for the July committee
d) agrees to continue the Capital International AIG mandate in its existing Sterling denominated guise until the July meeting, when options regarding the future of the mandate will be discussed.
e) will give consideration to Absolute Return Fund mandates, through a further education session in June for Members, in case the Fund wish to make a future strategic allocation
f) agrees to reduce the current 2% strategic allocation for active currency to 0% until further notice
g) will consider the alternative asset classes of infrastructure, private equity, commodities and timber with a view to making a strategic allocation (funded from the Fund’s current equities allocation), at the July committee meeting, following a further education session in June for Members
h) will not currently consider a strategic allocation of assets to a loans mandate but this will be reviewed again once the Government’s announcement on the implementation of the Hutton Review is known.
i) agrees to maintain the current allocation of property to 13% of the Fund and request officers to explore the possibilities of a global allocation with recommendations for implementation to be considered at a future committee meeting.