Issue - meetings
Investment and Fund Managers Performance Review for Quarter Ending 31st March 2018
Meeting: 24/07/2018 - Pensions Committee (Item 7)
7 Investment and Fund Managers Performance Review for Quarter Ending 31st March 2018 PDF 208 KB
Additional documents:
- Appendix 2c - LCIV RF TR Quarterly Investment Review, item 7 PDF 747 KB
- Appendix 3 – GSAM Investment Review for the Quarter, item 7 PDF 1001 KB
- Appendix 4 – Insight Investment Review for the Quarter 1 2018, item 7 PDF 113 KB
- Appendix 5 – LGIM Investment Review for the Quarter 1 2018, item 7 PDF 2 MB
- Appendix 6 – Schroders Property Investment Review for the Quarter1 2018, item 7 PDF 601 KB
- Appendix 1 – SSGS Quarterly Performance Review for March 2018, item 7 PDF 433 KB
Minutes:
Bola Tobun, Investment and Treasury Manager presented a report which informed members of the performance of the Pensions Fund and its investment managers for the fourth quarter of 2017/18. The Fund marginally outperformed its benchmark return of -1.2% by 0.1%. For this quarter six mandates matched or achieved returns over the benchmark. The four that failed to reach the benchmarks were LCIV RF, (TR), LCIV BG (DGF), Insight and GSAM bond portfolios. The value of the Fund (£1.485bn), decreased over the quarter by £38m.
The Independent Advisor advised that he approved of the Benchmark being used as the primary measure of performance for the Fund but suggested that the Peer Group comparison which was produced should also be considered. The Committee was advised that PIRC, a private sector organisation, produced the peer group comparison for a large section of the LGPS universe while State Street currently produce the performance of the Fund relative to the benchmark. Members noted that the LBTH Pensions Fund performance had improved and had better standing and was rated as the 5th best in the PIRC universe for 2017/18. This position has also improved when measured over 3 years and the fund is now above average in the PIRC universe when measured over 3 years.
Members noted that their Absolute Bond Portfolio was dependent on the skills and strategies of Managers. Members also noted that Bonds returns were more predictable as the returns are based on interest rates. The Independent Advisor noted that Multi Asset Credit (MAC) were not classified as high risk and commented that a high reliance on Managers skills was also present in this area. The purchase of vehicles which have exposure to a wider range of markets (not just bonds / credit) was recommended.
RESOLVED
1. To note the contents of the Report and
2. That a peer group comparison is considered when looking at the performance of the Fund; this will be produced by PIRC