Recent market movements
Many of you will have seen headlines and coverage in the press recently regarding liquidity issues for pension funds.
Dear members,
Many of you will have seen headlines and coverage in the press recently regarding liquidity issues for pension funds. The purpose of this note is to reassure you and highlight that the Warwickshire Pension Fund does not own Liability-Driven Investments, and has therefore not needed to meet collateral calls on leveraged hedging over the past few weeks, unlike some private sector pension funds.
Overall it is important to remember that the LGPS is a long-term, diversified and global investor: current market events appear to be short-term in nature. Therefore, for funding purposes, the Warwickshire Pension Fund continues to have a greater than 100% funding level.
Given the changes in the market, there may be changes to the investment strategy to take advantage of opportunities that have opened up, but we will continue to exercise prudence as always to ensure your benefits are secured.
I hope that this note provides useful information, and if you would like to know more, please contact: wpfinvestments@warwickshire.gov.uk
Kind regards,
Cllr Christopher Kettle
