Issue - meetings

To receive a presentation from Royal London Asset Management.

Rob Nicholson, Client Relationship Director and Richard Nelson, Senior Credit Fund attended the meeting to update the Committee on the mandates performance.

The Committee noted that the objective of the portfolio was to outperform the composite benchmark by 1.25% per annum net of fees, measured over rolling 3 year periods.

In order to achieve this target the following funds were permitted for investment:

The following funds are permitted for investment:

·         RL Sterling Extra Yield Bond Fund

·         RL Duration Hedged Credit Fund

·         RL Global High Yield Bond Fund

·         RL Short Duration Global High Yield Bond Fund

·         RL Short Duration Credit Fund

·         RL Short Duration Gilt Fund

·         RL Absolute Return Government Bond Fund

The Committee noted that the value of the funds had dropped as at 31 December 2016 to £138.40m from £143.54m in 30 September 2016m.

In conclusion the Committee was informed that the current global economic expansion would be sustained with the impact of the Brexit vote centred on the UK and eurozone economies; loose monetary policy, low historic bond yields and a low oil price would remain key supports.

Markets were likely to remain volatile as the full implications of Brexit remains unclear.

It was also indicated that corporate bond prices remains attractive; it was expected that the funds would outperform gilts over the next three years

The Government bond market also remains somewhat pessimistic about the prospects for global growth; it was expected that global bond yields to move gradually higher.

The Committee thanked the Royal London representatives for their presentation.