Decision details

The report provided the Committee with an overview of the performance of the Havering Pension Fund investments for the first quarter to 30 June 2017. The performance information was taken from the quarterly performance reports supplied by each Investment Manager, State Street Global Services Performance Services PLC (formerly known as WM Company) quarterly Performance Review Report and Hymans Monitoring Report.

It was noted that the net return on the Fund’s investments for the first quarter to 30 June 2017 was 1.3% (or £10m to £681m). This represents an outperformance of 1.0% against the combined tactical benchmark and represents an outperformance of 3.1% against the strategic benchmark.  The Baillie Gifford (BG) Global Equity Fund was the best performer over the quarter. The BG DGF and GMO Global Real Return Fund both outperformed their respective benchmarks over the quarter whilst the Ruffer Fund underperformed. The RLAM Fund lost money albeit less than the benchmark reflecting a fall in the value of bond markets over the quarter. 

It was also noted that the overall net return of the Fund’s investments for the year to 30 June 2017 was 13.5%. This represents an outperformance of 5.0% against the combined tactical benchmark and an outperformance of 4.7% against the annual strategic benchmark - this is a measure of the Fund’s performance against a target based upon gilts + 1.8% (the rate which is used in the valuation of the funds liabilities). The implications of this shortfall were set out in the report before Members.

The Committee:

1.            Noted the summary of the performance of the Pension Fund within the report.

2          Noted Hymans performance monitoring report and presentation

3          Received a presentation from the Fund’s Multi-Asset Manager (Ruffer)

4          Noted the latest quarterly update from the Chair of the Investment Advisory Committee, LCIV

5          Noted the quarterly reports provided by each investment manager.

6          Noted the analysis of the cash balances.