Fund Member Forum 13th September 2018
Welcome & Introductions Sir Merrick Cockell LPFA Chairman
Rock Rail
Anglian Water
Cory Riverside Energy
Review of the Year Robert Branagh LPFA Managing Director
Investment Update Richard J. Tomlinson Investment Director, Head of Investment Strategy LPP
Important information Capital at risk: Past performance is not an indicator of future performance. Investments may go down as well as up and you could get back less than you put in. Local Pensions Partnership Investments Ltd (LPPI) is authorised and regulated by the Financial Conduct Authority (Reference number: 724653). LPPI is appointed as an Investment Manager to manage the assets of London Pensions Fund Authority (LPFA). This presentation has been prepared for LPFA Fund Member Forum to provide information regarding the investment performance of the pension fund of LPFA. It does not provide any advice on legal, taxation or investment matters and should not be relied upon for any such purposes. The recipients of this presentation (whether intended or otherwise) are strongly advised to seek independent professional advice before making any investment decision. This presentation may contain ‘forward - looking statements, views or opinions’ with respect to certain plans and current goals and expectations relating to the investment performance of the pension fund of LPFA. By their nature, all forward-looking statements, views and opinions are inherently predictive and speculative and involve known and unknown risk and uncertainty because they relate to future events and circumstances which are beyond LPPI’s control. Any projections or opinions expressed are current as of the date hereof only. Without limitation to the generality of the aforesaid, this presentation is provided “as is” without any warranty (express or implied) as to the accuracy or completeness of any information contained herein. Neither LPPI, its affiliates nor any of said entities’ respective employees, directors and officers shall be liable howsoever to any person for any acts and/or omissions proclaimed to be based on this presentation or any part thereof. 8
LPFA Fund Value Capital at risk. Past performance is not an indicator of future performance. Investments may go down as well as up and you could get back less than you put in. £5.6bn as at 31 March 2018 6.0 5.6 5.3 4.9 5.0 4.6 4.5 4.0 3.0 2.0 1.0 0.0 31 March 31 March 31 March 31 March 31 March 2014 2015 2016 2017 2018 Fund value in billions 9
Investment performance Capital at risk. Past performance is not an indicator of future performance. Investments may go down as well as up and you could get back less than you put in. Data as at 31 March 2018 10
Current asset allocation Capital at risk. Past performance is not an indicator of future performance. Investments may go down as well as up and you could get back less than you put in. 5.4% Global equities 15.2% Fixed income Private equity Infrastructure 48.8% Alternative credit 7.4% Property Total return 5.0% Cash 5.3% 10.4% 2.4% Data as at 31 March 2018. Total may not add to 100% due to rounding. 11
Patient capital Capital at risk. Past performance is not an indicator of future performance. Investments may go down as well as up and you could get back less than you put in. Long term investment horizon Providing capital financing for businesses, real estate and infrastructure projects Rigorous investment assessment and risk evaluation 12
Responsible Investment Capital at risk. Past performance is not an indicator of future performance. Investments may go down as well as up and you could get back less than you put in. We are committed to responsible investment and engagement. We address environmental, social, and governance (ESG) issues in our investment process. ESG is an integral part of our investment decision making process. LPP is a signatory to the UN Principles for • Responsible Investment. Oversight by an Investment Board and • Stewardship Committee. LPP Responsible Investment Policy sets out our • principles for investing pension savings. LPP Shareholder Voting Policy ensures proper • stewardship and governance. 13
Pontoon dock Capital at risk. Past performance is not an indicator of future performance. Investments may go down as well as up and you could get back less than you put in. Artist’s impression of the completed development. Actual development may vary. 14
Clyde Wind Farm Capital at risk. Past performance is not an indicator of future performance. Investments may go down as well as up and you could get back less than you put in. 15
GLIL Infrastructure Capital at risk. Past performance is not an indicator of future performance. Investments may go down as well as up and you could get back less than you put in. Direct UK infrastructure investments 4 investors: o LPPI Global Infrastructure Fund; the pooling vehicle for the infrastructure assets of London Pensions Fund Authority and Lancashire County Pension Fund o Greater Manchester Pension Fund o Merseyside Pension Fund o West Yorkshire Pension Fund Long term ownership of the assets 16
Thank you Contact: Richard J. Tomlinson Investment Director, Head of Investment Strategy Local Pensions Partnership T: 020 7369 2666 E: rj.tomlinson@localpensionspartnership.org.uk W: localpensionspartnership.org.uk 17
Pensions Administration Update Greg Smith Director of Strategic Programmes & Group Company Secretary LPP
About us Pension Investment Asset and liability administration management risk management (via LPPI 1 , authorised and regulated by the Financial Conduct Authority) Our vision is to be ‘ a leading pension services business ’ operating on a ‘not -for- profit’ philosophy and working in partnership with our clients and other customers. 19
LPP at a glance employees pension fund members across LGPS, Police and Firefighter schemes assets under management via LPPI, a fully-owned subsidiary authorised and regulated by the Financial Conduct Authority 20
Pension Administration Administration • Performance Changes to the way we • deliver pensions Engaging with the • membership and dealing with member queries 21
Pension Administration - Performance Administration Performance • 95% of all queries completed on time – nearly 38,000 • queries 22
Pension Administration - Performance 99% of employer Average 58 days forms submitted to payment of online pensions 40% active 97% customer members using satisfaction self service 23
Pension Administration Changes in pensions delivery Contact centre development • Calls and emails from all locations • Key contact centre statistics: 18 85,490 93% staff queries * * 2017/18 24
Pension Administration Changes in pensions delivery New target operating model explained • ICT implementation was successful • Teething problems but stabilisation plan in place with • continuous improvement Member and Business Member services Employer Development Engagement Pension Administration: Preston 99 London 7 Havering 36 Hertford 25 25
Pension Administration Engaging with employers and members You can contact LPFA via email, phone and post. askpensions@localpensionspartnership.org.uk We aim to respond to all email queries within ten working days When contacting our call centre - we will aim to resolve your query over the phone and can give you advice on such things as: - Scheme regulations - Change of addresses - Help navigating the website - Talk through any of our processes - Help you complete documents over the phone. 26
Pension Administration Engaging with employers and members However, if we’re unable to resolve your query over the • phone or email, we may pass you onto one of our caseworkers who manage more complex queries. Our caseworkers will keep you informed throughout the • process and ensure timeframes are made clear. To ensure you get the information you need, when you • need it, we suggest going to our website and signing up for our member self-service portal. 27
Pension Administration Engaging with employers and members Customer Service Accreditation • Data Management Accreditation & GDPR • Member meetings • Employer annual conference November • Annual employer visits • Valuation 2019 • Website review planned for 2018-19 • Roll out of new member self service • functionality 28
Thank you Contact: Greg Smith Director of Strategic Programmes & Group Company Secretary LPP , 169 Union Street, London, SE1 0LL 0207 369 6058 07957 497 281 29
Guest Speaker Pam Jones Chairman, University of the Third Age (U3A)
U3A : what it could mean to you Pam Jones — national chairman 2015-18
What is retirement? “I took my dog for walks, redecorated, cleaned, more walks, shopping … … I missed the daily exchanges, a good chat, a bit of a laugh” U3A Impact report 2018
What is U3A?
What do we do?
What do we learn?
My U3A story
Why does U3A matter?
A fulfilling retirement
Get involved at u3a.org.uk
Fund Member Forum 2018 Thanks for coming!
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