Issue - meetings

Report attached.

Officers advised the Committee that the net return on the Fund’s investments for the quarter to 30 June 2016 was 4.5%. This matched the tactical benchmark and represented an under performance of -7.0% against the strategic benchmark.

The overall net return for the year to 30 June 2016 was 5.6%. This represented an under performance of -2.4% against the tactical combined benchmark and an under performance of -17.1% against the annual strategic benchmark.

At the close of business on 30 June 2016 the total combined value of the fund was £602.33m this represented an increase of £30.13m from the position at the close of business on 31 March 2016. Officers advised that as at the end of July 2016 the value of the fund stood at £624m.

Officers informed the Committee that they had met with a WM representative on 17 August 2016 who had given their annual presentation on the returns of the WM universe (other LGPS funds) and how the Havering Fund performed compared to the universe. The WM universe was made up of 88 funds with a combined asset value of £207bn. The benchmark for the universe was 0.2%. Havering Pension Fund had returned -1.0% (gross of fees), an underperformance against the universe benchmark of -1.2%.

The long term performance of the Fund’s annual return against the retail price index showed that over 3, 5, 10 & 20 year periods the fund had outperformed inflation.

WM had made a decision to discontinue providing performance measurement services to third party clients in the UK, effective from March 2016. The production of all universe analysis including the local authority peer group analysis would also be discontinued. They would still continue to provide their core performance measurement to State Street clients who subscribe to their custody and/or accounting service.

The Havering Pension Fund subscribes to both the custody and accounting services so performance measurement will continue for our fund.

Officers informed the Committee that the London CIV was leading on the issue of obtaining alternative service providers to produce the universe data.

The Committee had received an update from Hymans Robertson and presentations from Royal London their investment in UK Investment Grade Bonds and Ruffer on their absolute return portfolio.

The Committee noted the reports and presentations.