Welcome to 2018's first edition of Investment update - an opportunity to share our investment news and latest performance figures with you.
While the last quarter of 2017 was a relatively uneventful one for capital markets, with equity and bond markets continuing the long-running theme of strong positive performance, markets have seen increased bouts of volatility since the start of 2018. Global equity values are down by 0.7% in Sterling terms, and we expect to see more frequent bouts of volatility in 2018, given the impending tightening of monetary policy in developed markets.
You will see from the performance figures below that investment returns have been high over the last five years. On the defined benefit (DB) front, equity performance has been a leading contributor. Our strategy for the DB Growth Portfolio is to continue diversifying away from equities by sourcing a range of suitable alternative investments. We believe that this strategy continues to be appropriate, given the current valuations of equities and the increasing volatility in markets.
TPT has been investing in new systems which have allowed us to upgrade our quarterly DB Investment and Funding Reports. The new reports provide a much clearer picture of how each scheme is performing, with more scheme-specific data covering funding level projections, performance attribution and risk analysis. Once the new reports have bedded in, we will be focusing on speeding up our report delivery times, which I know is a focus for a number of you.
I hope you like the new look of the reports, but we are aware that there is always scope to improve. The reports are for you and we are keen to incorporate your views into future versions.
We are also excited about TPT's introduction of member roadshows, which took place in early March. They gave members the opportunity to ask us and Chair of the Trustee Board, Sarah Smart, their questions on topics including:
- The role of the Trustee Board and how it works on your behalf;
- How you can shape the future of TPT;
- How to get the most out of scheme membership;
- What members are telling us and how we are responding; and
- Our approach to responsible investment..
Although several of the sessions were unfortunately hampered by the weather, we are looking into the possibility of running further roadshows later this year. If you would like more information, please email firstname.lastname@example.org.
I hope you enjoy this edition of Investment Update and if you have any thoughts on what you’d like to see in future edition, then please get in touch.
CIO, TPT Retirement Solutions