The Isle of Wight council Pension Fund’s assets have been moving in a “positive direction” despite “quite challenging” economic conditions.
Investment assets rose in value by 10.6 per cent or £72.3 million in the financial year 2023/4, according to the fund’s Draft Annual Report and Accounts which are being presented to County Hall’s Local Pension Board today (Wednesday).
At the end of the financial year on 31st March 2024, investment assets stood at £757.6 million, compared with £685.3 million on 31st March 2023.
Jarman: These figures are still subject to audit
In a foreword to the Draft Annual Report and Accounts, chair of the Isle of Wight Pension Fund Committee, Councillor Chris Jarman, said,
“During 2023/24, the financial markets have seen something of a recovery from the previous year when market volatility was high following global market uncertainty arising out of the invasion of Ukraine by Russian forces, with high inflation and sharply increased interest rates also impacting.
“Economic conditions in the UK remained quite challenging during the year.
“Domestically, UK inflation continued to decline from the 8.7 per cent rate seen at the start of 2023/24 but remained above the Bank of England’s target level of 2 per cent by year-end.
“The overall impact has seen the value of assets held by the fund move in a positive direction. These figures are still subject to audit.”
Assets
The council’s assets include Pooled Investment Vehicles, property, private debt, infrastructure, cash deposits and other net assets.
Investments have been managed by Blackrock Asset Management, Newton Investment Management, UBS, Baillie Gifford, Goldman Sachs Merchant Banking Division, Partners Group, JP Morgan Asset Management, Royal London and Schroders.
The Draft Annual Report and Accounts has said,
“The Committee have developed a defined set of investment beliefs that include their views on Environmental, Social and Governance (ESG) issues.
“The Committee believes that long term sustainable investment returns are an important consideration, and ESG issues can have a material impact on the long-term performance of its investments.
“Each of the investment managers has produced a statement setting out its policy in this regard.
“The investment managers have been delegated by the Committee to act accordingly.”
ESG issues relate to companies’ impacts on the environment and society, according to the British Business Bank.
This article is from the BBC’s LDRS (Local Democracy Reporter Service) scheme, which News OnTheWight is taking part in. Some alterations and additions may have been made by OnTheWight. Ed
