Councillors and committees
Performance for Quarter to 30/9/2018
- Meeting of Pension Fund Panel, Thursday 13 December 2018 10:00 am (Item 25.)
- View the background to item 25.
The value of the Fund's investments at 30 June 2018 was £883.9.m. This is an increase of £28.2m (3.3%) from the total value at the end of June 2018.
Over the year Sept 17 – Sept 18 the Fund has increased from £814.6m. The composition of the Fund at 30 September was
A commentary from each of the fund managers outlining their investment performance during the quarter to 30 September 2018 was included as Annexes 1- 9. Performance figures are net of fees except in the case of UBS which for the present is shown gross. This is due to technical issues with the data feed they use and their internal reporting systems; possible solutions to this are being discussed with officers for future reporting.
Performance over the year to September 2018 - The Baillie Gifford and Ruffer portfolios are not included, as these investments began in October 2017.
The highest fund returns for the year were from the equity fund managers, Fidelity (12.5%), Columbia Threadneedle (16.6%), Schroders (9.7%) and the property fund manager UBS (8.7% gross).
Columbia Threadneedle were the only fund manager to both exceed their benchmark return and outperformance target.
The Janus Henderson All Stocks Credit Fund (ASC) was the only other fund to exceed its benchmark (0.6%).
The Janus Henderson Total Return Bond Fund (TRB) fell short of the 6% pa target return by -7.5%. This fund is intended to provide some diversification by protecting against falls in bond asset prices
The Diversified Growth Funds (DGF) - London CIV Pyrford Total Return Diversified Growth Fund and Standard Life returns for the year were 1.2% and -2.2% respectively.
Bonds - The Janus Henderson All Stocks Credit Bond Fund (ASC) returned 1.0% exceeding its benchmark by 0.4%
The Janus Henderson Horizon Total Return Bond Fund (TRB) fell short of the 6% pa target return by -6.6%. The TRB is intended to provide some diversification by protecting against falls in bond.
Performance over 3 years to September 18 - The three equity fund managers provided the highest returns over the rolling three year period. The Standard Life DGF was the lowest.
The managers exceeding their benchmark return were Columbia Threadneedle, Janus Henderson ASC and Pyrford. Fidelity, Schroders, UBS and Standard Life all failed to meet both their benchmark return and outperformance targets.
Developments since the September meeting
In November Aberdeen Standard Investments (ASI) advised that Guy Stern, Head of the Multi-Asset Investing team and lead for managing the Standard Life Global Absolute Return Strategies (GARS) fund, is planning to retire in 2019. In February 2019 Aymeric Forest, is expected to join the firm in February 2019 in this role and begin the transition of responsibilities from Mr Stern of as Head of Multi-Asset Investing. Mr Forest was previously a senior investment professional in the Multi-Asset team at Schroders,
Points from the Panel discussion concerned the performance of equities and the rewards for this; the changing market conditions and Brexit considerations and the implications for the investment strategy discussions.
Resolved that the latest performance information is noted.
- Pension Fund Valuation and Performance Report Q3 2018, item 25. PDF 300 KB
- 1-Fidelity Investment Review Q3 2018 - NET, item 25. PDF 1 MB
- 2-Columbia Threadneedle Investment Report Q3 2018 - NET, item 25. PDF 2 MB
- 3-Schroders Investment Report Q3 2018 - NET, item 25. PDF 1 MB
- 4-Henderson ASC Investment Report Qtr ending Q3 2018 - NET, item 25. PDF 5 MB
- 5-Henderson TRB Investment Report Q3 2018 - NET, item 25. PDF 5 MB
- 6- UBS Investment Report Q3 2018, item 25. PDF 193 KB
- 6a UBS Triton Property Fund Q3 18_FLASH, item 25. PDF 1 MB
- 6b - UBS Schroders UK Real Estate Fund Report Q3 2018, item 25. PDF 1 MB
- 6c- UBS Rockspring PUT Fund Profile Q2 2018, item 25. PDF 2 MB
- 6d- UBS Standard Aberdeen Pooled Property Q3 2018, item 25. PDF 1 MB
- 7- LCIV Quarterly Investment Report Q3 2018, item 25. PDF 2 MB
- 8 - Standard Life Investment Report Q3 2018, item 25. PDF 1 MB