Investment Performance

The Fund asset value increased by approximately £0.1bn from £10.7bn as at 31 March 2022 to approximately £10.8bn as at 31 March 2023 and delivered a 3.2% return on investment over the twelve months, which was above the policy portfolio benchmark but below the actuarial benchmark (the rate at which the Fund’s liabilities are assumed to grow year on year). Full financial results can be found in the Funds Annual Reports which can be found in Publications. 

This investment performance level has helped us to ensure that the Fund continues to be funded in excess of 100%. This performance also maintained Lancashire in the top 3 Funds of the 2022/23 Local Authority Fund league table for total fund performance. This league table is published by Pensions and Investments Research Consultants Ltd (PIRC) and most local government pension funds are covered by this. Performance was achieved against a backdrop of difficult market conditions as higher than anticipated inflation, tighter financial conditions, reduced growth expectations and increased geopolitical tensions all had a negative impact on markets.