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Fund Management

NILGOSC retains overall responsibility for the Fund, with the power to appoint one or more fund managers to manage and invest fund monies on its behalf. In appointing fund managers, NILGOSC retains statutory responsibility for the management of the Fund and that responsibility cannot be delegated.

NILGOSC has a statutory duty to:

  •  Take account of the amount to be managed by each manager and be satisfied, having taken advice, that it is not excessive
  •  Have regard to the suitability of investments
  •  Monitor the performance of the managers and from time to time review their appointment
  •  Take proper advice, obtained at regular intervals

NILGOSC maintains overall control of the Fund by:

  •  Agreeing the overall investment objectives with the fund managers taking into account actuarial
     expectations and investment powers
  •  Setting targets for asset allocation
  •  Monitoring investment performance
  •  Monitoring investment transactions.

NILGOSC has compiled a Statement of Investment Principles (SIP) as required by the Local Government Pension Scheme (Management and Investment of Funds) Regulations (Northern Ireland) 2000. Copies of the SIP are available on request or can be downloaded from here (*PDF, 193KB).

The allocation of the Fund between asset classes is determined by NILGOSC at its annual strategy meeting, normally held in October each year. NILGOSC has determined the types of asset class in which it wishes to invest and has selected a range of fund managers to manage particular types of asset class depending on their area of expertise.

The table below sets out the fund managers in place to manage NILGOSC’s investment portfolio as at 31 March 2016 and details the type and percentage of assets under management with each of the fund managers.

Asset Class

Fund Manager

% of Total Fund

UK Equities Baillie Gifford 8.1%
UK Unconstrained Equities BlackRock Investment Management 6.6%
Jupiter Asset Management 6.3%
Global Equities Wellington Management 6.7%
Global Unconstrained Equities Baillie Gifford 6.6%
Edinburgh Partners* 5.1%
Passive Funds
Legal & General Investment Management
Bonds Wellington Management 3.9% 
Traditional Property LaSalle Investment Management 8.2%
Index-Linked Property LaSalle Investment Management 4.6%
Infrastructure Antin Infrastructure Partners 0.4%
KKR Global Infrastructure Investors*

Source: HSBC
*NILGOSC decided in November 2015 to terminate the mandate with Edinburgh Partners once a replacement manager had been selected and the assets transferred. The mandate was still in place at 31 March 2016. 

All fund managers are responsible for the selection of individual stocks within each type of asset class. NILGOSC’s passive manager, Legal & General Investment Management (L&G), is responsible for maintaining the asset allocation within the agreed ranges. When a range is breached, L&G will rebalance the Fund back within the agreed tolerance. 

Each fund manager is remunerated on a fee basis dependent on the market value of the portfolio. The percentages of the Fund allocated to each fund manager will fluctuate depending on performance and/or can be changed by NILGOSC at any time. NILGOSC has a range of controls in place to monitor investment by fund managers.

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