Deficit now stands at £10bn at UK’s largest pension fund

first_imgThe Universities Superannuation Scheme (USS) has seen its funding decline to 83%, equivalent to a £10bn (€12.7bn) deficit, despite outperforming its benchmark last year.The UK’s largest pension fund saw its deficit continue to increase, with funding down by 6 percentage points since 2014, during which time assets increased by more than £8bn to £49.8bn.However, neither the absolute deficit figure nor the funding ratio were as bad as reported in 2013, when USS calculated an £11.5bn shortfall – equivalent to 77% funding. A return of 1.6%, nearly 2.4 percentage points above its benchmark, was praised as “exceptional” by CIO Roger Gray, while emphasising the fund remained focused on delivering strong returns over the longer term. “On a five-year basis,” the fund’s annual report said, “returns have also been very good, with 1.1% annualised outperformance contributing an additional £2.2bn above the scheme’s strategic benchmark.”The report added that investments generated income of £1.2bn over the course of the last financial year, although some of the gains were undone by losses from its derivatives holdings and equity portfolio, resulting in net returns of around £700m.Chief executive Bill Galvin also warned the UK’s vote to leave the European Union would have a “substantial” impact on the fund, specifically on the universities acting as its sponsors, due to the potential changes to free movement and EU research funding.“As an institutional investor,” Galvin added, “we are invested in more than 100 countries worldwide, and we will need to review the implications of any proposed constitutional changes for areas such as tax, counterparty exposure and investor protection.“There will be much contingency work to do as negotiations proceed.”Galvin also highlighted that new governance structures in place since January last year, with trustees agreeing an appetite for risk, had allowed the fund to be more nimble.He cited the acquisition of Moto Hospitality as one of the cases where USS had put the new flexibility to good use.USS acquired Moto in October 2015 for an undisclosed sum, only to sell a 40% stake to CVC Capital a few months later.The fund has also launched a defined contribution section, a move agreed as it seeks to control its deficit and cap pay accruing under its current defined benefit (DB) scheme.last_img read more

Read More →

NORTH-WEST GARDEN SHOW ACCUSE POLITICIANS OF WEEDING OUT THEIR EVENT

first_imgThe organisers of one of Donegal’s biggest events has hit out at election candidates for squeezing their event off the agenda.The North West Garden Show usually attracts thousands of visitors.The CPI group from Castlefinn, who organise the North West Garden Show, say they can’t advertise their event – because there is no room left.The Garden Show attracts thousands of visitors locally and from across Ireland. But the not for profit group say they can’t find places for their posters in towns and villages around Donegal – because of local election candidates putting up thousands of posters.A CPI spokesperson said it is calling on the candidates and local communities to support the promotion of the event through social media to help make this years show the successful event it has been in previous years.“As a community not for profit event our budget is just not available to increase paid advertising and we call on the candidates, council and community to help us in getting our details out there on The North West Garden Show the major funding event for CPI and a huge attraction for all business and communities in the North West. www.northwestgardenshow.ie Twitter @northwestgs facebook: www.facebook.com/NorthwestGardenShow?ref=hl Telephone:+353 (0)74 91 43976.”  NORTH-WEST GARDEN SHOW ACCUSE POLITICIANS OF WEEDING OUT THEIR EVENT was last modified: May 11th, 2014 by StephenShare this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Reddit (Opens in new window)Click to share on Pocket (Opens in new window)Click to share on Telegram (Opens in new window)Click to share on WhatsApp (Opens in new window)Click to share on Skype (Opens in new window)Click to print (Opens in new window) Tags:castlefinndonegalnorth west garden showpoliticiansposterslast_img read more

Read More →