Dorset pension fund for 70,000 public sector workers loses value
It's being put down to the war in Ukraine
A pension fund for around 70,000 public sector workers in Dorset has suffered losses after turmoil in the markets caused by Russia's invasion of Ukraine.
Its fallen from £3.69 billion in April to £3.37 billion at the end of September.
The biggest contributors are Dorset and BCP Councils.
The Dorset Pension Fund Committee are now considering investing in Dorset enterprises to also help support local jobs.
Some councillors have questioned whether the remaining third of its assets. of around a billion pounds, should be transferred to outside fund managers, or looked after ‘in-house’.
Final decisions have not been made.
Almost two-thirds of the Dorset Pension Fund assets are now managed on its behalf by the Brunel Pension Partnership.
David Vickers, Brunel’s Chief Investment Officer, told a Dorset Council committee that he remained optimistic for the future and believed new investment opportunities will emerge, including at home where the UK market was now being seen by some overseas investors as an ‘emerging market.’
Mr Vickers said that after two decades of most investments enjoying a 'tail wind', the first two quarters of this year was 'like facing into a headwind', although his team were now seeing signs of improvement in some areas.
The meeting heard that despite the fall in value the Dorset Pension scheme is still well placed, compared to many others, with the ability to meet its obligations to pensioners, those who have deferred pensions, and also to future pensioners.