Devon Pension Fund has rebalanced its investment portfolio following a 7.8% decrease in fund value over the six months to 30 September 2022.
A report from Angie Sinclair, the council’s director of finance and public value, confirmed that the fund’s value was £5,025m at 30 September 2022. This is a decrease of around £110m over the quarter and £390m since 31 March.
The report, which is due to be discussed at a meeting of the Investment and Pension Fund Committee on 25 November, said that “action had been taken to rebalance” since the quarter end, with £50m being moved from passive equities to sterling corporate bonds.
According to Sinclair’s report: “The sterling corporate bond portfolio has gone down significantly in value as a result of the recent interest rate volatility, presenting an opportunity to add to the investment when the market is relatively cheap.”
Private markets investments have also been ramped up, with a further £36m of the fund’s infrastructure commitment being drawn down, plus £10m of the private debt commitment and £2.5m of private equity commitment.
Over the quarter, £50m was redeemed from the Diversifying Returns Fund to cover these private market calls. A further £50m has been redeemed since the quarter end in anticipation of further private market calls.
—————
FREE weekly newsletters
Subscribe to Room151 Newsletters
Room151 LinkedIn Community
Join here
Monthly Online Treasury Briefing
Sign up here with a .gov.uk email address
Room151 Webinars
Visit the Room151 channel
