Global Stock Market Volatility

Following the announcement last week of a significant increase in tariffs on the majority of countries exporting goods to the United States global stock markets have fallen sharply. These falls have been some of the largest in recent decades although this is very early days and some markets have already seen some degree of recovery.

Tyne and Wear Pension Fund has assets in excess of £13billion which are invested in a range of different asset types and regions. The strategy and individual portfolio performance is constantly monitored. The Fund is a long term investor with liabilities stretching out decades and the strategy is focused upon generating long term income and capital growth to pay members benefits each month and to keep contribution rates low and stable.

Recent market movements have a negative impact on some asset valuations, but these have not impacted upon the long term strategy set out above. The Fund has experienced many market movements over decades, most notably during the global financial crisis and more recently during the Covid pandemic and the Fund has consistently achieved positive long term returns.  Our Investment Managers are assessing the impact of recent events and may adjust their portfolios and strategies where considered appropriate.

The Fund has a diversified investment portfolio including equities (listed stocks), bonds, commercial property, housing, private equity, infrastructure and cash which means the exposure to any one market is limited to an appropriate level of risk.

The Fund currently has a strong solvency level of well over 100% and sufficient cash reserves for the medium term which means it not forced to sell any assets at valuations it is not comfortable with.

Local Government Pensions are calculated based upon predetermined formulas which are not related to investment markets and so are unaffected by market movements. There are absolutely no concerns regarding the Funds ability to continue to pay pensions.

More information on our investment strategy can be found on our website:

Investment Strategy Statement - Tyne and Wear Pension Fund