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Govt pension funds rise 15%

Virtually all asset classes gave positive returns in 2010, said Premier and Finance Minister Paula Cox yesterday as she reported on the performance of the Public Pension Funds.

At the end of last December:

- Contributory Pension Fund's assets totalled $1.38 billion, an increase of about $178 million or 14.9 percent;

- The Public Service Superannuation Fund's assets totalled $453 million, an increase of about $55.6 million or 15.1 percent.

Ms Cox said this gives the Contributory Pension a ranking in the 11th percentile of Public Funds, and the Superannuation Plans a seventh percentile ranking.

“In this regard, it is pleasing to note that Government's investment strategy for pension fund assets is achieving decent results,” said Ms Cox in a statement.

She said Government had implemented an asset diversification strategy in 2001, to protect it from exposure to the publicly traded stock markets.

Ms Cox says that approach has improved the Public Funds' risk-adjusted returns by giving a more balanced allocation within global stock and bond markets, and adding alternative investment strategies.

She said: “I would like to commend the Public Funds Investment Committee, the technical officers from the Ministry of Finance, the Accountant General's Department, and our Investment Consultant, New England Pension Consultants, for their sterling work in providing prudent oversight of the investments held in trust in respect of the Public Funds.”

Bermuda Democratic Alliance finance spokesman Michael Fahy questioned whether the cash in the funds would be sufficient.

“We welcome the update from the Ministry of Finance,” he said. “However the unanswered question is this: is there enough money to cover all the future pensioners' needs? Perhaps the Ministry will advise.”

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Published March 09, 2011 at 8:55 am (Updated March 09, 2011 at 8:55 am)

Govt pension funds rise 15%

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