Welcome to our latest newsletter which gives me the opportunity to update you on recent events.
I’m happy to report that the Fund has had a successful year with our assets growing to around £3.7 billion across our active and closed funds. Our Investment Strategy, designed to both robustly manage risks and take positive opportunities, has delivered 9.7% investment returns over the last 5 years. Our successful financial performance is supported by our deep commitment to investing responsibly and we believe it’s paramount in our ability to deliver sustainable, long term returns.
Our level of assets when compared to our liabilities is 102% at March 2018, which is amongst the best in the LGPS. Our employer contribution rates are also amongst the lowest, with our employers remaining committed to ensuring the Fund maintains its excellent position going forward.
We have met our climate change goals of decarbonising our equity portfolio through reducing our exposure to ‘future emissions’ for coal and oil and gas 2 years ahead of target. Both have been reduced by over 90%. We have achieved this success through a number of factors linked to our overall investment strategy.
Our positive contribution to responsible investment received further global recognition during 2017/18 when we won the of ‘Best Approach to Responsible Investment’ at the LGC Awards, ‘Best implementation of ESG’ by Institutional Investor and ‘Best Responsible Investment’ by the LAPF. These all help to consolidate the Fund’s standing and leadership in this area.
Over the last year, the Fund has faced a number of challenges in the form of organisational restructuring, and the requirement to pool our assets. The Pension Committee feels it has a governance framework that is strong and robust and these changes whilst challenging at times, bring new opportunities for the future.
Read my biography here
Joanne Segars OBE
Chair of the Pensions Committee
