Douglas Council has avoided a pensions black hole after a freeze on investment helped the fund recover from an early year slump.

Pensions committee chairman, Councillor Karen Angela, provided an update to members of the council at its October meeting.

Ms Angela confirmed that the fund is currently 1% down on its position at the end of September 2019, but that this represents a far healthier position than the fund could’ve been in having dropped 10% in March.

A report into the second quarter performance of the investment manager showed that the scheme ’returned 9.5% over the quarter, with a relative return of +1.3% against its benchmark’.

It added: ’The recovered resulted in an increase of the scheme’s assets by £7.4m during the quarter regrouping a large proportion of the £9.3m loss in quarter one. The out performance over the quarter was driven from growth assets. Members noted there were no investments made over the quarter as the scheme decided to defensively hold cash given the extra volatility exhibited in markets.’

Council leader David Christian led the praise for Ms Angela and the pension committee for managing the fund through an exceptional period of instability.

Mr Christian admitted he ’expected a major black hole’ in the fund after the Covid-19 pandemic, so was pleased to so it in a strong shape. At the end of September, the fund was worth £84.9m.