Current market volatility and press reports
Update following recent press coverage of financial markets and the impact on pension schemes.
You may have seen press coverage of recent financial markets turmoil having an adverse impact on pension schemes.
We would like to reassure you that it is private sector defined benefit pension schemes which have been impacted. The reduction in value of UK Gilts following recent government announcements which influence government debt levels have affected private sector pension schemes with Liability Driven Investment (LDI) strategies. The Tyne and Wear Pension Fund is a long-term investor and has no LDI strategies.
The advisor to the Fund, Hymans, has given assurances that recent financial market volatility is within the scenario analysis which has been conducted on behalf of the Fund.
At this stage there is no need for concern, and the Fund will be sticking with its long-term strategy.