The committee agreed to continue the process of equity reduction and asset diversification started after the 2014 actuarial valuation of the Fund.
The results of the actuarial valuation as at 31 March 2017 confirmed a total funding level of 105% (assets as a % of liabilities) largely through investment performance significantly exceeding expectations (investment return for 2014 to 2017 was 12.5% p.a.).
As a result, the Fund's de-risking strategy was triggered in December 2017 and a £2bn sale out of equities was implemented using derivatives.
This, and other strategic changes since 2014 have reduced the equity component of the Fund's benchmark from 72.5% to 57.5%.
The committee agreed a further reduction to 52.5%. Proceeds of equity sales will be invested in:
The Fund's total return for the quarter ending 31 December 2017 was +3.7%. 12-month return was +12.6%.
Membership increased to 230,241.
The Fund's value as at 31 December 2017 was £21,172m, and the estimated funding level at 31 December 2017 was 110.2%.
The Fund's value as at 31 January 2018 was £21,232m.
The Committee approved:
The Committee also noted: