Issue - meetings
Report- Quarterly Investment Performance Review by Bola Tobun, 5 Minutes
Meeting: 20/06/2019 - Pensions Committee (Item 8)
8 INVESTMENT AND FUND MANAGERS PERFORMANCE REVIEW FOR QUARTER END MARCH 2019 PDF 829 KB
To receive a report outlining the Quarterly Investment Performance
Minutes:
The Committee received and noted a report that provided details of the performance of the pension fund managers and the overall performance of the Tower Hamlets Pension Fund. Whilst there are no direct financial implications arising from this report, the long term performance of the pension fund will impact upon pension contribution rates as set by the Committee. The main points of the report may be summarised as follows:
i. Investments managed under the London Common Investment
Vehicle (LCIV) pooling arrangement
a) LCIV Global Alpha Equity Fund - Baillie Gifford (BG GA)
Managed under the LCIV pooling arrangements, the market value of the assets as of 31 March 2019 was £345.890m. The portfolio outperformed the benchmark by delivering a return of 12.39% compared to a benchmark return of 9.64% over the quarter while underperforming against the one-year benchmark return by -1.69%. However, it outperformed the three-year benchmark return by 3.73% per annum and the 5 year benchmark return by 2.41% per annum.
Over the 12-month period to 31 March 2019 the top contributors to performance in the portfolio were Amazon Corporation, Anthem Inc and Advanced Micro Devices. Over the same period the top detractors to performance were Prudential, Ryanair, Zillow and Microsoft.
b) LCIV Diversified Growth Fund - Baillie Gifford (BG - DGF)
Market value of assets as at 31 March 2019 was £136.822m. Quarter ending return of this portfolio was 6.14% with relative outperformance of 5.09% above benchmark return of 1.04%. This portfolio underperformed the one-year benchmark by -3.78%, but outperformed the three year benchmark return by 1.15% per annum and by 0.61% per annum over 5 years. The portfolio invests in a range of asset classes.
c) LCIV Absolute Return Fund – Ruffer Ltd (Ruffer LLP)
The value of assets under management as of 31 March 2019 was £130.574m. The portfolio outperformed the benchmark by delivering a return of 3.15% compared to benchmark return of 1.04% over the quarter while underperforming against benchmark on the one year by posting a return of -0.55% against a benchmark return of 4.06%. Over 3 years the portfolio outperformed its benchmark by posting a positive return of 3.71% per annum and posting 3.72% per annum, slightly ahead the benchmark by 0.11% per annum for over 5 years period.
d) LCIV Multi Asset Credit - MAC Fund
Tower Hamlets Pension Fund transferred £90m on 29 May 2018 to London CIV to invest in LCIV (CQS) MAC which was launched 31 May 2018. The portfolio had a market value of £91.8m at 31 March 2019.This portfolio delivered a positive return of 2.65% over the period and outperformed its benchmark by 1.29%.
ii. Goldman Sachs Asset Management (GSAM)
The portfolio had a market value of £52.542m at 31 March 2019. The portfolio outperformed the benchmark in the reporting period by posting returns of 2.66% against a benchmark return of 1.29% and underperformed the benchmark for one year to reporting period considerably by -4.93%.
The largest contributor to performance was the interest ... view the full minutes text for item 8
Meeting: 13/03/2019 - Pensions Committee (Item 6)
6 Investment and Fund Managers Performance Review for Quarter Ending 31st December 2018 PDF 263 KB
Additional documents:
- Appendix1NTPerformanceReport31Dec2018, item 6 PDF 982 KB
- Appendix2LCIVInvestmentReport31Dec2018, item 6 PDF 753 KB
- Appendix3GSAMInvestmentReport31Dec2018, item 6 PDF 2 MB
- Appendix4INSIGHTInvestmentReport31Dec2018, item 6 PDF 113 KB
- Appendix5LGIMInvestmentReport31Dec2018, item 6 PDF 3 MB
- Appendix6SCHRODERREInvestmentReport31Dec2018, item 6 PDF 880 KB
Minutes:
The Committee was presented with the Performance of the Fund Report-Quarter ending December 2018. The following points were highlighted and summarised as listed below:
- The fund went down by £75.9 million in Q4 2018, albeit it is unrealised loss but bounced back in February by £85 million.
- The equity protection strategy is performing as expected and was beneficial to performance given the equity market sell off in Q4. Page 27 highlights Managers Investment Performance Relative to benchmark as at 31st December 2018. Some of the figures outlined in the table are wrong and will be amended for next quarter.
- Page 31 represents Fund value by investment managers as at 31st December 2018 compared to 30th September 2018 and it can be seen that equity portfolios lost money due to market volatility. A request was made to publish the table in a different format using layman terms (as per table 27 and table 29) as well as to keep consistency in naming convention of organisations names.
RESOLVED
To note the report.