Investment Performance Update (Nov 15)

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At its meeting in September 2015 the SHPS Committee received the latest Investment Report (for the assets that underpin the defined benefit (DB) structures of the Scheme) for the period to 30 June 2015. A summary of the returns can be found below: 


Quarter ended

30 June 2015


12 months ended

30 June 2015


5 years ended

30 June 2015








10.4% p.a.








9.8% p.a.


Liability Proxy




11.1% p.a.

Asset returns moved in negative territory this quarter, especially equities. However, this is where diversification toward alternative assets paid off as these assets remained relatively stable, helping to stabilise the overall return for the Growth Assets. Actual returns for the year and the previous five years are ahead of the underlying benchmarks which is a positive.

The ‘Liability Proxy’ illustrates how the value of reserves required (such as liability value) for an average pension scheme has changed during the periods shown above. This helps to understand whether the Scheme’s funding level has got better or worse. For example, if the liability proxy return is lower than actual asset returns, then the Scheme’s funding position will have improved – even where asset returns are negative, which is shown in the above quarter’s results.

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