Q2 Message from the CEO
September 27, 2011
The Q2 2011 Quarterly Financial Report is now available; CEO Meryl Whittaker provides members with a quick financial update in the Financial/Investments section of the website.
Market commentary
In the midst of heavy market turmoil and gloomy predictions of a double-dip recession, the Local Authorities Pension Plan (LAPP) ended the second quarter of 2011 with modest but positive returns.
The plan remains on track to grow assets over the long term. The Board's support for continued diversification, with less of an emphasis on public equity, will help to achieve that despite fluctuating markets.
Concerns about the global economic outlook and political uncertainty in the U.S. and Europe have combined to fuel public equity market volatility, at times erasing gains that have been made over the last 12 months. All these circumstances combine to drive long-bond yields even lower, making it difficult to hold steady and improve the plan over the short term.
However, we know we cannot control markets and the economy is difficult to forecast at the best of times. As a disciplined investor, LAPP continues to focus on the long term growth prospects of the plan.
Yes, market volatility presents challenges and creates a strong headwind for the plan to improve over the short term. But the instability provides another reminder that the Board's decision to maintain a diversified portfolio while shifting to less volatile asset classes like infrastructure and real estate will help weather the global storm.
Pension plans, like LAPP, are long-term undertakings. We remain focused on a positive, steady growth of assets to pay the pensions of our members for many decades to come. We will continue to rely on well-reasoned long-term investment strategies.
Meryl Whittaker
CEO, LAPP Corp.
