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 News Stories

File picture of Romford station

Two men were arrested and a woman was knocked down by a bus in a night of drama outside Romford station last week, it has emerged.

Milly and Becky at Rainham food bank's Christmas event (photo: Arnaud Stephenson)

It’s a festive staple for most, but a basic Christmas dinner is out of reach for much of the borough’s most disadvantaged.

17:07
Barkingside Magistrates Court

A roadside car salesman has clocked up a bill of almost £2,500 for selling an Audi with false service history and mileage.

11:15
police tape

Two men have been arrested on suspicion of fraud and money laundering.

Most read news

WW100

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

News from your area

Digital Edition

Image
Read the Romford Recorder e-edition today E-edition

Cook congratulates employees on one of the biggest year’s in Apple’s history.

A Gogglebox family will have to keep their comments about the week’s TV to themselves from now on.

The online encyclopaedia created a special video showing how the year’s event are linked.

People are divided and it’s definitely following a pattern.