A pension pot for more than 50 north-east companies has boosted its profits by nearly £350 million in the past year.
The North East Scotland Pension Fund (NESPF), which is administered by Aberdeen City Council, has soared to around £4.4 billion in assets through its investments during the 2018-19 financial year – an increase of £344m from the previous year.
The annual accounts of the fund are detailed in a report due to go to the pensions committee at Aberdeen City Council.
In the past year, £142m was paid in by employees and their bosses from the firms.
The pot pays out cash to retirees from around 58 different companies, most of whom are based in the city or the north-east.
Both Aberdeen and Aberdeenshire councils, along with Sport Aberdeen, the Scottish Fire and Rescue Service, Aberdeen Performing Arts, and Scottish Water all pay in.
As part of a scheme to try and boost revenues for clients, pension funds regularly seek out investment opportunities.
NESPF has property holdings worth a market value of £293m, up from £259m the year before, purchasing £35m worth of assets.
In the foreword to the report, pensions committee convener Taqueer Malik said: “2018-19 was another good year for investment returns, with equities continuing to deliver strong positive performance.
“The fund’s strategy of diversified investments, combined with a long-term outlook, has meant it has outperformed its benchmark over both the medium and long-term, rising to a total net asset value of £4.45bn.”
The fund also boasts “overseas equities” of nearly £820m, and domestic investments of just over £730m.
Plans have also been drawn up to bring national transport company First Bus into the fold, which is currently administered by Strathclyde Pension Fund.
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