UK - Plunging stock markets have wiped nearly £5bn off the value of the Universities Superannuation Scheme's assets in the past seven months.
The scheme, which is heavily invested in equities, had assets worth £19.7bn at the end of March. It now estimates its assets at £15bn. Two years ago they were worth £22bn.
The revaluation comes in advance of the results of an actuarial review by Mercer Human Resource Consulting due to be published in the first week of December.
However, USS chief executive officer David Chynoweth said that there was “no chance” of the scheme’s 14% contribution rate being raised.
He said: “Despite the market falls, the prospect is that the scheme will still be in surplus, and we anticipate that it will be big enough to continue the present employer contribution rate for the life of the active members.
“The surplus will have fallen, however, we have used the same assumptions that we did previously, so there has not been any dodges to get there.”
The USS currently has 57.5% in UK equities, 22.1% in overseas equities, 2.8% in UK bonds, 1.4% in index-linked bonds, 4.9% in overseas bonds, 3.2% in cash and 8.1% in property.
Previously, USS chief investment officer Peter Moon has defended the scheme’s commitment to a high equity allocation despite equity market falls.
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