Issue - meetings

The Committee considered a report that provided an overview of the performance of the Havering Pension Fund investments for the quarterly period to 31 December 2016. The performance information was taken from the Quarterly Performance Report supplied by each Investment Manager, the WM Company Quarterly Performance Review Report and Hymans Monitoring Report.

The Committee noted that the net return on the Fund’s investments for the quarter to 31 December 2016 was 1.3%. It was noted that the performance matched the tactical benchmark and represented an outperformance of 7.0% against the strategic benchmark.

The overall net return of the Fund’s investments for the year to 31 December 2016 was 14.5%. The return represented an outperformance of 1.7% against the tactical combined benchmark and under performance of -5.7% against the annual strategic benchmark. The annual strategic benchmark was a measure of the fund’s performance against a target based upon gilts + 1.8% (the rate which was used in the valuation of the funds liabilities).

The report informed the Committee on the implications of the shortfall.

The Committee were advised that officers measured each fund managers’ annual return for the new tactical combined benchmark and these results were detailed later in the report.

Following a brief discussion the Committee agreed the following recommendations:

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

2)    Considered the Hymans performance monitoring report and presentation attached to the report

3)    Received a presentation from the Fund’s Bonds Manager (Royal London) and the Fund’s Property Manager (UBS).

4)    Considered the quarterly reports provided by each investment manager.

5)    Considered and noted any Corporate Governance issues arising from voting as detailed by each manager.

6)    Considered any points arising from officer monitoring meetings (section 4 refers).

7)    Noted the analysis of the cash balances (paragraphs 2.2 and 2.3 refers).