Pensions Fund Annual Report 2011-12 , item 18. PDF 4 MB

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I n v e s t m e n t r e p o r t Bonds A steady deterioration in global economic data and renewed problems in the eurozone meant that government bonds in major markets (such as the UK, Germany and US) performed very strongly in the first few months of the period, benefiting from a flight to quality as investors purchased heavily. Corporate bonds in contrast performed poorly with sectors such as banking, telecoms and utilities, which had the most exposure to troubled European economies, doing the worst. This trend continued throughout the summer as investors continued to switch from riskier assets such as corporate bonds and peripheral European government debt to the continued benefit of perceived safe havens such as UK government bonds. Corporate bonds did outperform government bonds in October on measures taken to combat the eurozone debt crisis. Percentage breakdown of investment type at 31 March 2012 Cash (2.7%) UK equities (25.3%) UK bonds (12.5%) Property (8.8%) Other (6.8%) However, it did not take long for the previous trend to be re-established, with corporate bonds in particular remaining volatile until the end of the year. The start of 2012 signalled a turnaround in bond markets. The major government bond markets that had performed so well in 2011 began to find it tougher and corporate bonds, helped by improving economic data and the action of the European Central Bank to provide extra liquidity to the financial sector, performed much better. This positive movement in corporate bonds over government bonds was maintained through the start of 2012, but began to slow as we got nearer the end of the period as the now familiar worries over the eurozone began to creep back into investors minds. Global equities (43.9%) Europe – not including the UK (8.3%) DRAFT North America (21.9%) Japan (1.7%) Asia pacific – not including Japan (4.5%) Emerging markets (7.5%) 10
I n v e s t m e n t r e p o r t DRAFT Property The UK commercial property market weakened slightly over the period as it was not immune to the effects of the eurozone debt crisis and general market turbulence. The market was supported though by the still relatively attractive returns it offers, in terms of rental income, compared to other assets. During the period offices, and particularly prime office locations such as central London continued to perform well with retail property performing the worst. As the period came to a close, occupier demand for all property types slowed as in the current economic climate companies remained unwilling to take on extra commitments. Alternative investments The market for private equity investments during the period was quite volatile but sections of the private equity market did have a successful year leading to overall positive returns from this asset class. The hedge fund market struggled to generate returns during the period, although the market is a very diverse one and depending on manager selection some investors will have been rewarded with positive returns. The 10 largest equity holdings Name of company Market value on 31 March 2012 Royal Dutch Shell £24,279,211 Vodafone £22,148,533 HSBC £19,528,366 British American Tobacco £15,097,385 Glaxosmithkline £13,080,164 BP £12,819,564 Standared Chartered £12,766,135 Rio Tinto £11,247,262 Oracle £9,771,405 DRAFT Rio TintoDRAFT Pfizer £9,197,215 11
Page 1 and 2: Staffordshire Pension Fund Annual r
Page 3 and 4: Contents 2 3 9 18 27 53 55 Chairman
Page 5 and 6: F u n d m a n a g e m e n t Governa
Page 7 and 8: 7 F u n d m a n a g e m e n t Pensi
Page 9 and 10: F u n d m a n a g e m e n t Adminis
Page 11: I n v e s t m e n t r e p o r t DRA
Page 15 and 16: I n v e s t m e n t r e p o r t Inv
Page 17 and 18: I n v e s t m e n t r e p o r t Inv
Page 19 and 20: I n v e s t m e n t r e p o r t Cur
Page 21 and 22: F u n d m e m b e r s h i p Benefit
Page 23 and 24: F u n d m e m b e r s h i p aT New
Page 25 and 26: F u n d m e m b e r s h i p Benchma
Page 27 and 28: F u n d m e m b e r s h i p Custome
Page 29 and 30: Financial statements Staffordshire
Page 31 and 32: F i n a n c i a l s t a t e m e n t
Page 35 and 36: notesDRAFT DRAFT Assumptions The as
Page 37 and 38: Financial statements F i n a n c i
Page 55 and 56: G l o s s a r y Glossary of terms A
Page 57 and 58: C o n t a c t s If you have any que

Pensions Fund Annual Report 2011-12 , item 18. PDF 4 MB

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