Redbridge Pension Fund, valued at £1.09 billion, has outperformed its benchmark for the quarter ending June 30, 2025, according to a report presented at the Redbridge Council Local Pension Board meeting on Thursday 2 October 2025.
The fund achieved a return of 4.04%, surpassing the benchmark of 3.31%. While the fund has shown strong performance over the quarter and the past three years, it has underperformed its benchmark over one and five-year periods, according to the Public reports pack. The specific reasons for the underperformance over the one and five-year periods are not detailed in the report, but it is noted that Northern Trust and the Fund Managers provide performance management information.
As of June 30, 2025, the Pension Fund was valued at £1,094.180 million. The Current Update on Pension Fund Matters as at 30 June 2025 - Report detailed the fund's investment managers and their performance objectives. Table 1 in the Public reports pack lists the fund's current investment managers and the performance objective of each mandate:
- Schroders (Emerging Markets Equity): To out-perform the MSCI Emerging Markets index by 3% over a 3-year rolling basis
- Schroders (Property): To out-perform the IPD All Balanced Property Fund Index Median by 1% over a 3-year rolling basis.
- LCIV - Baillie Gifford (Global Equity): To out-perform the MSCI AC World index by 3% gross of fees.
- LCIV - Baillie Gifford (Diversified Growth Fund): To return 3.5% above cash on a rolling five-year basis.
- LCIV - Legal & General (Low Carbon Global Equity): To track the MSCI World Low Carbon Target Index.
- LCIV - Legal & General (UK Equity): To perform in-line with the FTSE All Share Index
- LCIV - Legal & General (Index Linked Bonds): To track the FTSE Indexed Linked Gilts 5+ years
- LCIV - Stepstone (Infrastructure Fund): Net return of 8% per annum
- LCIV - Aviva (Real Estate Long Income Fund): Net income distribution of 3% per annum
- LCIV - Insight (Long Duration Bond Fund): A yield in line with the iBoxx £ Collateralized & Corporates 10+ index.
- LCIV - CQS & Pimco (Multi-Asset Credit Bond Fund): An absolute return of 4.5% above SONIA (30 day compounded) rate.
- LCIV - CBRE AHF and Octopus AHF (UK Housing Fund): Target return of between 5% and 7%
The investment managers include Schroders, LCIV, Baillie Gifford, Legal & General, Stepstone, Aviva, Insight Investment, Pimco, CQS, CBRE, and Octopus Investments.
The Local Pension Board approved the minutes of the meeting held on 5 June 2025, agreeing that they were an accurate record. Apologies for absence were received from Councillor Neil P. Zammett and Doreen Daly.
The report does not specify the exact factors that led to the fund's outperformance in the most recent quarter.
