Search

Havering Council pension fund loses £10m in seven years

11:00 27 December 2012

Cllr Clarence Barrett

Cllr Clarence Barrett

submitted

One of Havering Council’s pension investment funds has lost £10m in seven years, the Recorder can reveal.

The fund, managed by UBS, has seen £33m invested in it since 2005, but in November its value was just £23m.

But the council argues that this has been partially offset by a £6m gain in rental income elsewhere.

The investment funds go towards paying the pensions of council workers and others in its scheme – including teachers, and staff at some contractors used by Havering Council.

The opposition Residents’ Association group is calling for a review of investment strategies following the revelation.

RA leader Cllr Clarence Barrett said: “While all pension funds have gone through turbulent times since 2005, this particular investment portfolio has struggled for quite some time.”

The latest investment in the fund was £7m in May 2011.

Recalling the council investing in Icelandic banks before the 2008 crash, Cllr Barrett added: “At least with the £12.5m deposited in Iceland there was an element of surprise, but this investment has deteriorated over a number of years.

“In no way can the pension fund afford to lose such a huge sum.

“We shall be asking for a review of the investment strategy and also of the advice given to make sure we are not just throwing good money after bad.”

Marshajane Thompson from Havering Unison, said: “It’s very disappointing but it’s not entirely surprising. We’ve been calling for a long time for proper trade union representation when it comes to pension investments.

“We’ve been asking for voting rights so that the people who pay in to their pensions have a say over where their money is going.”

But Cllr Roger Ramsey, the council’s finance chief, said: “Pensions are a long-term investment and our pension fund uses managers to invest in several diverse investments to protect our fund from fluctuations in the stock market such as this.

“Of all our fund managers, this is the only one which, over the lifetime of the investment, is currently showing a loss.”

He added: “This has been off-set by £6m in rental income from the manager, which owns office and retail units across the country.”

0 comments

Latest Romford News Stories

13 minutes ago
BHS, located in the Liberty Shopping Centre.

Shoppers have been making the most of closing down sales as the town’s BHS store prepares to close its doors for the final time.

Yesterday, 17:48
Jumping for joy

After the excitement of last week’s A-level results day, it’s time for teenagers across the borough to experience the same nerve-wracking feelings as they collect their GCSE results.

Yesterday, 13:02
Havering Museum will host the free workshop on September 22

An accountancy firm is sharing its resources with local start-ups and inviting them to attend a free business workshop.

Yesterday, 12:25
Residents staging a protest against plans to dump waste on Rainham's Ingrebourne Hill. A four-day public inquiry over the plans opened on Tuesday.

Developers who have been battling to dump “inert” waste on green belt land are also planning to process it on the site, it has been confirmed.

Yesterday, 11:28
Volunteers for the flashmob

Charity volunteers overcame their nerves to perform a flashmob dance in aid of International Youth Day.

Yesterday, 08:23
Drivers faced big delays on the A13 Essexbound last night. Picture: TfL

Three separate collisions on the A13 caused hours of delays for drivers.

Yesterday, 07:00
The parking bay in Calbourne Avenue with the faded parking bay lines.

A frustrated driver was left fuming after being slapped with a £110 fine for parking in what she claims is a “money trap” bay.

Tue, 16:45
Friends Grace Smith and Demi Wilkinson, both 11, enjoy a fun day at Dovers farm estate green.

More than 100 residents took part in fun activities on a green, that was recently threatened with a housing development.

Newsletter Sign Up

Most read news

HOT JOBS

Show Job Lists

News from your area

WW100

Click on the banner above for full coverage of the centenary commemorations of the outbreak of the First World War.

Competitions

You could win £15,000 to spend on either their mortgage or a deposit towards the home of their dreams

Wouldn’t it be lovely to have a period of time when you simply don’t have to worry about finding the money each month to pay your mortgage? When you don’t have to put money aside from your monthly income, or worry about having to afford other essential outgoings?

Which book character do you share cleaning habits with?

Whether you have more in common with put-upon Cinderella, emotionally turbulent Jane Eyre, or easily distracted Mole, you’re sure to appreciate that one lucky winner will receive four sessions of free cleaning. Enter our quiz for your chance to win. All runners up will get £10 off their first clean when making a repeat booking.

Digital Edition

cover

Enjoy the
Romford Recorder
e-edition today

Subscribe

Education and Training

cover

Read the
Education and Training
e-edition today

Read Now