Councillors and committees

Agenda item

Performance for Quarter to 30/12/2018

Minutes:

The value of the fund at December was £817.6m a decrease of £66.3m (7.5%) from September, illustrating the fall in markets. The fund value is now at the same level as March 2018.

 

The composition of the Fund at 31 December was

 

Equities

59.3%

Property

5.5%12.3%

Cash

0.8%

DGF

22%

Bonds

 

 

 

 

 The majority of the fall is in equities across all sectors and market conditions are reflected through the performance against benchmark.  

The Panel was provided with a commentary from each of the fund managers outlining their investment performance during the quarter to 31 December 2018.

 

Over 1 year UBS had a positive return over the year albeit they are the only fund still reporting performance as gross figures. All of the fund managers failed to meet their benchmark returns and performance targets.

 

Over 3 years the 3 equity fund managers provided the highest returns and the only fund with a negative return was the Aberdeen Standard DGF.

Columbia Threadneedle and Janus Henderson ASC exceeded their benchmark.

 

On the residential property fund investment M&G has confirmed its commitment to the subscription but has not yet issued a notice calling for funds.  The Panel is aware that it may take 2 years (from February 2018) for the investment to be made the subscription.

 

The Investment strategy is considering options to reduce equity risk, Overall several asset classes do not look particularly attractive.  As part of the consideration of diversification options, the investment in Aberdeen Standard, where the allocation has already been reduced, is also being reviewed.

 

Developments since the December meeting.

Ryan Myerberg, portfolio manager in the Global Bonds team and co-Portfolio Manager on the Janus Henderson Total Return Bond Fund has left the firm to pursue other opportunities.

 

Chris Diaz, Co-Head of Global Bonds, has joined Andy Mulliner as co-Portfolio Manager on the Janus Henderson Total Return Bond Fund. There will be no changes to the investment process or philosophy of the Total Return Bond Fund.

 

Resolved that the latest performance information is noted.

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