Investments Paul Tysoe

Investments Why Investments? Investment Governance and Performance. Collaboration.

 Pensions are not just for Xmas Investment life cycle  Join age 18 retire age 67 +  Hold your money until you retire  And beyond  Draw pension over many years Why are Investment Needed ?

Age profile of deceased pensioners

Income Sources CONTRIBUTIONS INVESTMENT RETURNS BENEFITS REDUCES DEMAND ON CONTRIBUTIONS

Funding Level and Deficit Triennial Valuation Scheme Actuary – Hymans Robertson Revalue's liabilities Revises deficit Rates and Adjustments Certificate The results of the latest valuation as at 31 March 2013 were agreed in March 2014 and showed:- Assets £1,905m Liabilities for past service£2,633m Deficit£728m Funding level 72.4% Asset Allocation Strategy Risk and Return appropriateness

Funding Level and Leficit 2013 valuation Improving asset values The funding level for the whole fund not for individual employers.

Performance of Fund Assets versus Target from 31 March 2013 to 30 June 2015 % Return

Performance reporting Investment Managers CustodianFx execution Cost monitoring Investment Sub Committee Annual manager review How are the funds managed

Fund Structure at 30 June 2015

Investment Manager Structure at 30 June 2015

Total return by Fund manager – 3 years to 31 March 2015 Return over 3 year Manager Capital Gain/Loss (£m) Income (£m) Total Return (£m) UK passive Global passive Global Growth European Specialist Emerging Markets Multi-Asset Property High Yield Credit Total Investment returns adding real value

Administering Authorities must “pool investments to significantly reduce costs, while maintaining investment performance” Funds to come forward with their own proposals to meet common criteria: (size, cost savings, governance, Infrastructure reference?) Investment Pooling Collaboration

A Collection of Central Eastern and Southern Shires Like Mindedness – Core Principles “To seek the best outcomes for our Funds and the wider LGPS individually and collectively” LGSS Officers fully participative on project work streams Informed approach – careful transition planning “Regional” Working Group (ACCESS)

North West £31,233,345 North East £33,376,148 Midlands £35,134,218 South East £37,816,063 London £25,621,998 South West £17,087,535 Wales £11,825,847 Traditional regions: Combined LGPS Assets

Funds Mandates by Asset Class [14 Funds] 197 mandates

Asset Class Value (£m)

Questions