AllenbridgeEpic Investment Advisers London Borough of Hounslow Annual - - PowerPoint PPT Presentation

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AllenbridgeEpic Investment Advisers Limited is an appointed representative of Allenbridge Capital Limited which is Authorised and Regulated by the Financial Conduct Authority AllenbridgeEpic Investment Advisers Limited is a subsidiary of Allenbridge Investment Solutions LLP

AllenbridgeEpic Investment Advisers

London Borough of Hounslow Annual General Meeting

Performance of the Fund and Activity

10th November 2014

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Value of your pension assets over time

Source: WM

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Your pension assets – 31st March 2014

Total Fund £719.8 million

Source: WM

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Key performance achievements in the past year

• The fund delivered a reasonable return of +4.8% for the financial year

to March 2014

• It grew

in value by £47 million between March 2013 and March 2014

• The portfolio return of +7.9% for the three years to March 2014 was

+0.4% ahead of the fund’s benchmark

• The fund was also ahead of the three‐year average WM local authority

return of +7.5%

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UK equities

• Both Aberdeen and BlackRock

manage a portfolio of UK equities

• Objective: do better than the FTSE

All Share Index, which measures the performance of over 700 UK companies

• Assessment: over a long period,

usually 3 years

• Both managers have done well but

Aberdeen is slightly ahead of BlackRock

Source: WM report to 31/3/14, all performance is gross of manager fees

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Overseas equities

• Both Aberdeen and BlackRock

manage a portfolio of overseas equities

• Aberdeen only holds non‐UK

stocks, BlackRock holds UK and

• verseas
• Both managers have done well
• But the the past twelve months

have been challenging for both of them

Source: WM report to 31/3/14, all performance is gross of manager fees

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Bonds

• Both Aberdeen and BlackRock

manage a portfolio of bonds

• This contain a mix of inflation‐

linked and fixed coupon bonds

• Their portfolios include

government bonds and corporate bonds

• Over the past three years, bonds

have done just as well as equities

• But both managers are trailing the

index

Source: WM report to 31/3/14, all performance is gross of manager fees

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Property

• Now investing in two external

pooled funds

• Property also had good absolute

returns over three years

• Internally managed portfolio was

performing less well – affecting three‐year numbers

Source: WM report to 31/3/14

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Private equity (diversifying assets)

• A portfolio of private equity

funds monitored by officers

• Diversifies the equity risk
• Has performed extremely well
• ver the past three years
• Change in strategy in 2013/14

– moving to funds with a wider range of assets (not just private equity)

Source: WM report to 31/3/14, all performance is net of manager fees

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The New Investments in the Fund

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Diversified growth funds

• Invest in a wide range of assets that perform differently to UK equities
• They provide protection against falling equity markets
• But over time they should deliver good absolute returns
• They also have lower volatility than equities

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Property funds

• Two new investments in property funds managed by Threadneedle

and CBRE

• Threadneedle

invest in Grade B properties (e.g. properties just outside the ‘prime location’ category)

• CBRE invest in a range of core assets. Theirs is a more cautious

approach

• Timing of new investments ‐
• beneficial. One year return for the IPD Index

to March 2014 was +11.0%

• Threadneedle

took London Borough of Hounslow’s existing direct holdings in return for units in their Fund ‐ market values agreed by an independent valuer

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Is the fund achieving its objectives?

The fund has coped well despite continued challenges in markets The external managers have performed well over three years although the

past year has been challenging

The new diversifying assets portfolio is performing well and doing its job Property has had a very strong 12 months and this has helped the

Fund The Committee is currently looking carefully at the bond allocation to see if there is a more efficient way to capture the opportunities in this sector

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Important information

This document is directed only at the person(s) identified on the first slide on the basis that they are a professional investor or professional customer. It is issued by AllenbridgeEpic Investment Advisers Limited, an appointed representative of Allenbridge Capital Limited which is Authorised and Regulated by the Financial Conduct Authority. No liability is admitted to any

• ther user of this report and if you are not the named recipient

you should not seek to rely upon it. Information about securities contained in this report is provided for information purposes only. Nothing contained herein should be construed as a recommendation or solicitation to buy or sell any security.