Issue - meetings
Investment and Fund Managers Performance Review for Quarter Ending 30th September 2017
Meeting: 29/11/2017 - Pensions Committee (Item 6)
6 Investment and Fund Managers Performance Review for Quarter Ending 30th September 2017 PDF 274 KB
Additional documents:
- Enc. 1 for Investment and Fund Managers Performance Review for Quarter Ending 30th September 2017, item 6 PDF 433 KB
- Enc. 2 for Investment and Fund Managers Performance Review for Quarter Ending 30th September 2017, item 6 PDF 185 KB
- Enc. 3 for Investment and Fund Managers Performance Review for Quarter Ending 30th September 2017, item 6 PDF 465 KB
- Enc. 4 for Investment and Fund Managers Performance Review for Quarter Ending 30th September 2017, item 6 PDF 494 KB
Minutes:
Kevin Miles, Chief Accountant presented a report which informed Members of the performance of the Pension Fund and its investment managers for the second quarter of 2017/18.
The Fund delivered a positive return of 2.2% for the quarter, outperforming its benchmark return of 1.7% by 0.5%. For the twelve months to September 2017, the Fund returned 11.7% outperforming the benchmark of 10.4%. Looking at the longer term performance, the three year return for the Fund was 10.3% also ahead the benchmark return by 0.3% for that period. Over the five years, the Fund posted a return of 10.9% outperforming the benchmark return of 10.3% by 0.6%.
For this quarter end, five out of the nine mandates matched or achieved returns above the benchmark. The four that did not reach the benchmarks were the mandates with LCIV Ruffer, LCIV BG (DGF), Insight and GSAM. Overall for this reporting quarter the Fund performance was ahead of its benchmark.
For 12 months to end of reporting quarter, the Fund is ahead of its benchmark by 1.3%. Three out of the nine mandates underperformed their respective benchmark. The mandates that lagged behind their respective benchmarks were LCIV Ruffer lagged behind by -2.4%, Insight lagged behind by -2.7%and GSAM by -3.3%.
The Fund is still in line with its long term strategic equity asset allocation and the distribution of the Fund’s assets amongst the different asset classes is broadly in line with the strategic benchmark weight.
Steve Turner, Fund’s Investment Consultant, Mercer queried the accuracy of State Street figures for Baillie Gifford Fund and advised that the forecast that was provided may be erroneous and that this would have an impact on the Funds returns. Officers were advised that they would need to revisit the set of figures provided and make the necessary revisions if required.
Members requested that reports be printed in colour if they contain graphs and figures.
RESOLVED
1. To note the contents of the report in respect of the Investment and Fund Managers Performance Review for Quarter Ending 30th September 2017; and
2. That Officers revisits figures provided by State Streets for Baillie Gifford and make any necessary revisions if required.