Meeting documents

Purpose of the Report

1 To provide the Committee with an overview of the transactions undertaken during the period 1st April 2008 to 30th June 2008, to show how the value of the portfolio has changed during the period, the overall performance of the Managers and to consider the additional sums available for allocation to the Managers for further investment.

Value of the Fund and Transactions

2 Reports from the six appointed managers - Alliance Bernstein, Barings, BlackRock, CBRE, Edinburgh Partners and Royal London are included on the Agenda. A summary of their transactions and the change in the value of the Fund for the period 1st April 2008 to 30th June 2008, detailed by Manager, is attached in the Appendix 1.

Managers’ Performance

3 The table below shows how the Managers of the six parts of the Fund have performed over the last quarter and since inception against agreed benchmarks:

	Quarter ended 30th June 2008	Since inception (11th February 2008)
Manager	Performance	Performance compared to Benchmark Performance Performance compared to Benchmark
Alliance Bernstein	+2.71	+0.52+2.84-0.09
Barings	-0.62	-3.05-2.30-5.56
BlackRock	+1.49	+2.20-1.35+1.15
CBRE	-8.42	-11.89-10.57-14.80
Edinburgh Partners	-3.85	-3.03-5.42-4.03
Royal London	+1.39	+0.07+3.47+0.14

Allocation of “New Money”

4 Appendix 2 details the cash position of the Fund, cash flow for the last four quarters, and an estimated cash flow for the quarter ended 30th September 2008.

5 The un-invested cash balance at the end of the previous quarter, together with interest and dividend received during the quarter, would normally available for investment during the quarter ending 30th September 2008. The amount allocated to each Manager is subject to the need to retain money to meet the Fund’s net cash outflow. However, it is suggested that, as a review of the Fund's Rebalancing Policy is presently being undertaken in conjunction with the Pension Fund’s Advisors, no allocation be made until this work is completed.

Conclusion

6 Members are asked to note the value of the Fund as at 30th June 2008, the performance of the Fund Managers and that no allocation of “new money” will be made to Fund managers pending the completion of the Rebalancing Policy.

Contact: Paul Turner Ext: 3571 To view Tables, please refer to PDF attachment or Hard Copies Located in the Record Office or Corporate Services.

Attachments