Investment performance update (SHAPS DB) - July 2016

News | Updated: 07.07.16 Share this:

The Committee received the latest investment report (regarding the assets that underpin the defined benefit (DB) structures of the Scheme) for the period to 31 March 2016. A summary of the returns can be found below: 


Quarter ended
31 March 2016

12 months ended
31 March 2016

5 years ended
31 March 2016




8.8% p.a




8.4% p.a

Liability Proxy*



11.8% p.a

*The ‘liability proxy’ illustrates how the value of reserves required (i.e. liability value) for an average pension scheme has changed during the periods shown above. The liability proxy cannot however give the complete ‘SHAPS’ picture as it does not specifically track the movements in the SHAPS’ liabilities and takes no account of changing valuation assumptions.  It helps us to understand how the Scheme’s funding level (i.e. assets divided by liabilities) has moved (e.g. if the liability proxy return is lower than actual asset returns, then the Scheme’s funding position will tend to have improved).

With steady returns from growth assets, combining with significant returns from liability matching assets, the overall Scheme return looks strong in isolation. However liability values rose sharply during the quarter, leading to a deterioration in the funding position.

The Scheme’s overall investment strategy will be reviewed on completion of the Scheme’s 2015 valuation.

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