Issue - meetings

Investment Strategy and Manager Summary

Meeting: 13/06/2018 - Clwyd Pension Fund Committee - currently one vacancy for Denbighshire County Council (Item 12)

12 Investment Strategy and Manager Summary pdf icon PDF 87 KB

To update Committee Members on the performance of the Fund’s investment strategy and Fund Managers

Additional documents:

Decision:

(a)        The Committee noted and discussed the investment strategy and manager performance in the Investment Strategy and Management Summary 31 March 2018; and

 

(b)        The Committee considered the information in the Economic and Market Update report to provide context in addition to the information contained in this report.

 

Minutes:

Mr Buckland led this item of the agenda and highlighted that the Fund’s total market value over the past three months was c£1,777 million at the end of March, c£1,820 million at the end of April and approximately c£1,850 million at the end of May. JLT are still awaiting confirmation for this figure however there has been an increase of around 5% since the end of March.

 

Mr Buckland directed the Committee to page 209 which outlined the performance summary at the end of March. The three month performance was disappointing for the Fund which was driven mainly by equity returns being negative. However, overall the three year Total Fund return is ahead of the benchmark despite this.

 

Mr Buckland highlighted the Best Ideas Portfolio had not performed well in the three months to 31 March 2018. There was a decline of 4.1% making a total market value of c£188 million at the end of March 2018. However, as at the end of May 2018 there had been improved performance, which gave a total market value of c£198 million.

 

The overall in-house assets performed well as a whole over the past twelve months and three years, exceeding the benchmark across both time periods.

 

Mr Latham commented the performance of the LGPS as a whole was analysed at a meeting he previously attended and the Fund was the fourth best for equity returns across the LGPS. Equity is an asset class that the Fund usually struggles with in comparison to its peers so that was a pleasing outcome. Mr Buckland noted that exposure to emerging markets helped the Fund’s performance in equities.

 

RESOLVED:

 

 

(a)        The Committee noted and discussed the investment strategy and manager performance in the Investment Strategy and Management Summary 31 March 2018; and

 

(b)        The Committee considered the information in the Economic and Market Update report to provide context in addition to the information contained in this report.