Investment performance

NILGOSC monitors its asset managers through reports produced by the investment team, the Investment Advisor and the performance measurement provider, who is NILGOSC’s appointed global custodian, The Northern Trust Company (Northern Trust). Specifically, reports showing the financial performance of each asset manager and performance at the overall Fund level are provided by Northern Trust, both monthly and quarterly. Each manager is remunerated on a fee basis, dependent on the market value of the mandate. These structures have been established in order to align the interests of the managers with those of the Fund.

All of NILGOSC’s managers work to long-term investment horizons, generally a five to ten year market cycle, and accordingly, NILGOSC is not unduly concerned with short term volatility in investment returns. A robust quarterly investment monitoring process is in place, which aims to look beyond returns to uncover the underlying cause of any underperformance. Therefore, in addition to monitoring financial returns, NILGOSC reviews a number of key qualitative factors such as investment style and team, business strength, ESG practices, risk management, and the managers’ level of assets under management. NILGOSC also takes advice from its Investment Advisor, and thereby retains conviction in the underlying investment process adopted by its external managers to deliver the target level of return over longer term time horizons.