Appendix 2 Current investment management arrangements – Portfolio Investment Benchmark Annual target Manager performance of fees Low-risk active Schroder FTSE All +1.25% UK equities Investment Management Acadian Asset MSCI World Index +1.5-2.5% net Management global equities Baillie Gifford MSCI ACWI +1.5-2.5% net Newton MSCI ACWI +1.5-2.5% net Investment Management Standard Life MSCI ACWI +1.5-2.5% net Passive Global State Street FTSE All World Equity Equities Global Advisors Index Passive UK State Street FTSE All Share Equities Global Advisors Active global Western Asset Barclays Capital Global +1.5% gross Management Aggregate Index Private equity Aberdeen Asset +9%-11.5% net Management Hedge funds Morgan Stanley +5.5%-8% net Infrastructure Grosvenor +7.5%-10% net Capital Management Passive UK Legal & General FT British Government index-linked Over Five Years bonds Gilts Index State Street FT British Government Global Advisors Over Five Years Gilts Index UK property CBRE Global Retail Price Index (RPI) +4.5% net Investors European Aberdeen Asset Eurozone Harmonised +5% net property (legacy Management Index of Consumer portfolio) Prices (HICP)
Appendix 2 – Current investment management arrangements Portfolio Investment Manager Benchmark Annual target performance of fees Low-risk active UK equities Schroder Investment Management FTSE All +1.25% global equities Acadian Asset Management MSCI World Index +1.5-2.5% net Baillie Gifford MSCI ACWI +1.5-2.5% net Newton Investment Management MSCI ACWI +1.5-2.5% net Standard Life MSCI ACWI +1.5-2.5% net Passive Global Equities State Street Global Advisors FTSE All World Equity Index Passive UK Equities State Street Global Advisors FTSE All Share Active global Western Asset Management Barclays Capital Global Aggregate Index +1.5% gross Private equity Aberdeen Asset Management +9%-11.5% net Hedge funds Morgan Stanley +5.5%-8% net Infrastructure Grosvenor Capital Management +7.5%-10% net Passive UK index-linked bonds Legal & General FT British Government Over Five Years Gilts Index State Street Global Advisors FT British Government Over Five Years Gilts Index UK property CBRE Global Investors Retail Price Index (RPI) +4.5% net European property (legacy portfolio) Aberdeen Asset Management Eurozone Harmonised Index of Consumer Prices (HICP) +5% net
2018-investment-strategy-statement.docx