UK - Guernsey's public sector pension fund has suffered a paper loss of £2.25m (US$4.6m) because of an ill-timed investment in Northern Rock.
Schroder's has advised keeping the shares to benefit from a future rise in price when a rescue package or new buyer is found for Northern Rock.
Liz Stonebridge, senior investment officer for the Guernsey pension fund, downplayed the severity of the losses and said Schroder's still enjoyed the confidence of the fund.
She said the shares hadn't been sold, so the loss was as an unrealised accounting figure and represented a very small proportion of the total investments. Of 47 different investments in the Schroder's mandate, 14 had produced returns of £1m or more. At present values, the fund is worth £898m.
"It's not a bad news situation," she said. "We take the long term view on this."
Schroder's was unavailable to comment.
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