Report on the Pension Fund Accounts for year end 31 March 2008
Presentation by Gerald Almeroth, Chief Financial Officer.
Minutes:
The Chief Financial Officer, Gerald Almeroth, gave a presentation on the Pension Fund Accounts for the year ending 31 March 2008.
Mr Almeroth reported that the Pension Fund Accounts had been reported to the Pensions Committee on 23 June 2008, and had been approved by the trustees. Responsibility for managing the fund’s investments lay with five fund managers, as per the terms of their respective contracts of appointment:
The value of the fund was reported as having decreased by £14.8 million overall in 2007/08, with a £45.1 million decrease in the market value of investments being offset by investment income of £15.3 million and non-investment income of £15 million. Mr Almeroth added that financial issues such as the sub prime mortgage situation in the USA had also affected the market.
Mr Almeroth reported that it was essential for the Pension Fund to take a long term view, and added that over the past five years there had been a strong upward trend. Fund managers were set rolling annual targets to outperform the rest of the market, and these targets differed according to each mandate. For 2007/08, it was reported that fund manager performance against targets had been mixed, and Mr Almeroth outlined the performance of each fund manager.
The meeting was advised that the fund was invested in a number of companies and spread across a range of different types of investment in order to minimise risk and maximise potential returns. The investment was also spread globally, with 61% invested in the UK market, 15% in Europe and the rest worldwide following the approval of a new investment strategy. It was reported that the current split of the fund was in line with the investment strategy, and that it would take time to invest fully in property and private equity.