Richard Perry

Northamptonshire Pension Fund Investments

• How are the funds invested?

• How has the fund performed?

• What is the funding position?

Investments

The fund invests in accordance with applicable regulations including The Local Government Pension Scheme Regulations.

The investment strategy of the funds are set and agreed by the Pension Fund Board and implemented by the Investment Sub Committee.

The fund employs professional investment consultants to advise on investment decisions.

The investments are managed day to day by professional investment managers working to predefined objectives.

Performance of the fund and each investment manager is measured and reviewed on a regular basis.

How are the funds invested?

Performance reporting

Investment Managers

Custodian Fx execution

Cost monitoring

Investment Sub Committee

Annual manager review

How are the funds managed?

Fund structure at 31st March 2014

Private Equity, £1.5m , 0%

Equities, £1,109.9m , 67%

Bonds, £303.3m ,

18%

Diversified Growth Fund, £131.5 m, 8%Property,

£113.4m , 7%

Market value at 31 March 2014 £1,659m

Investment manager structure at 31st March 2014

Total investments at 31 March 2014 = £1,659 millionUBS

UK and global equities, £533.0m

Majedie, UK equity, £236.2m

Newton, global equity,

£256.4m

Skagen, global equity,

£83.2m

Baillie Gifford, Diversified

Growth Fund, £131.6m Wellington UK Fixed Income, £137.5m

Wellington Global Strategic Credit, £89.1m

Wellington, Global Total Re-

turn, £76.7m

CBRE ,Property, £113.4m

Catapult, Private Equity,

£1.5m

Market value at 31 March 2014 £1,659m

Performance of Fund Assets versus Target 2013/14

% R

etu

rn

Funding level and deficit

2013 valuation

Improving asset values

The funding level for the whole fund not for individual employers.

Funding level and deficit

The formal actuarial valuation is performed by the scheme Actuary, Hymans Robertson, every 3 years.

The valuation is a snapshot at a point in time of the Fund’s liability for pension benefits promised to scheme members for service up to that date.

The results of the latest valuation as at 31 March 2013 were agreed in March 2014 and showed:-

Assets £1,547m Liabilities for past service £2,191mDeficit £644mFunding level 70.5%

Questions