STATE STREET INVESTMENT ANALYTICS
London Borough of Merton
Performance Review
Period Ending 31st March 2012
Annual General Meeting
Wednesday 19th September 2012
1
STATE STREET INVESTMENT ANALYTICS
Fund Structure as at end March 2012
Mandate
Value at end
March 2012
% Value of Fund
% Benchmark
Allocation
Total Equities
£278.3 m
70%
70%
UBS
Global Equity
Passive
£133.4 m
34%
UBS
Global Equity
£67.3 m
17%
Aberdeen
Global Equity
£77.6 m
20%
Total Bonds
£103.1 m
26%
Global Bonds
£103.1 m
26%
Property
£15.4m
4%
UBS
Property
£8.4 m
2%
RReef
Property
£6.9 m
2%
Total Fund
Multi Asset
£396.9 m
Manager
Aberdeen
100%
25%
5%
100%
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STATE STREET INVESTMENT ANALYTICS
Performance relative to Benchmark
Fund Returns
12 Months
Return
%
3 Years
% pa
5 Years
% pa
10 Years
% pa
20
18
16
14
12
10
8
6
4
2
0
Fund
4.9
16.1
4.6
6.1
Benchmark
4.5
15.9
4.7
6.4
3
STATE STREET INVESTMENT ANALYTICS
Fund Performance – Year to end March 2012
Fund Return: 4.9%
Benchmark Return: 4.5%
Difference: +0.4%
•
The above benchmark return was
due to stock selection in Equity
investments.
4
STATE STREET INVESTMENT ANALYTICS
Manager Performance – Latest Year
% of
Manager
Total
Fund
Mandate
Fund Return %
Benchmark
Return %
Difference
UBS
34
Global Equity
Passive
+1.4
+1.4
+0.0
UBS
17
Global Equity
-0.3
-0.7
+0.4
Aberdeen
20
Global Equity
+4.1
-1.5
+5.7
Aberdeen
26
Global Bonds
+14.5
+16.5
-1.8
UBS
2
Property
+6.1
+5.7
+0.4
RReef
2
Property
+2.5
+5.7
-3.0
5
STATE STREET INVESTMENT ANALYTICS
Fund Performance – Three years to end March 2012
Fund Return: 16.1% p.a.
Benchmark Return: 15.9% p.a.
Difference: +0.1% p.a.
•
The above benchmark return was
due to stock selection in Equity
investments.
•
This was reduced however by the
unfavourable above benchmark
commitment to Bonds during 2010.
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STATE STREET INVESTMENT ANALYTICS
Manager Performance – Three Years Performance to end March
2012
% of
Manager
Total
Fund
Mandate
Fund Return %
p.a.
Benchmark
Return % p.a.
Difference
UBS
34
Global Equity
Passive
+18.1
+18.3
-0.1
UBS
17
Global Equity
+18.1
+17.8
+0.3
Aberdeen
20
Global Equity
+22.9
+17.7
+4.5
Aberdeen
26
Global Bonds
+10.3
+10.1
+0.2
UBS
2
Property
+7.4
+8.8
-1.3
RReef
2
Property
+5.1
+8.8
-3.4
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STATE STREET INVESTMENT ANALYTICS
Long Term Annual Performance
vs. WM Local Authority Universe
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
3yrs
% pa
5yrs
% pa
10yrs
% pa
Fund
-19.4
20.4
11.1
25.0
6.9
-2.8
-17.4
37.8
8.2
4.9
16.1
4.6
6.1
Benchmark
-19.5
23.4
11.7
24.9
7.0
-2.8
-19.9
35.2
8.2
2.6
14.5
3.2
5.7
Relative
0.1
-2.4
-0.5
0.0
-0.2
-0.0
3.2
1.9
-0.1
2.2
1.3
1.4
0.4
Ranking
(35)
(93)
(56)
(48)
(53)
(42)
(21)
(34)
(46)
(18)
(25)
(10)
(21)
Fund Returns
4
2
Relative
Return
%
0
-2
-4
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STATE STREET INVESTMENT ANALYTICS
Contact details for further information
Lynn Coventry – Client Manager
State Street Investment Analytics
525 Ferry Road, Edinburgh EH5 2AW
0131 315 5258
Lynn.coventry@StateStreet.com
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