The fund, which is responsible for than 80,000 public sector workers throughout the county, saw a return on investments of 4.7% during the last full financial year, less than the benchmark of 7.4%.
Dorchester councillor, Andy Canning, who chairs the pension fund committee says in his annual report that over three years, the fund achieved an annualised return of 3.6% against a benchmark of 5.5%, while five-year returns stood at 8.7% compared to 9.5%.
The Dorset fund is one of ten funds mainly managed by the Brunel Pension Partnership, with 85% of its assets managed by the partnership.
Cllr Canning says that a further merger, with the country-wide local government scheme is now likely to come about.
He says that, after seeking independent advice, the Dorset’s Pension Fund Committee has chosen Local Pension Partnership Investments (LPPI) as its preferred partner for the further merger, citing LPPI’s £30 billion asset base, strong governance, and industry-standard credentials.
The panel chairman says that membership of the Dorset scheme continues to grow, now exceeding 82,000 active, pensioner, and deferred members. He says the fund has also reaffirmed its commitment to decarbonisation, noting that 10% of assets are invested in Brunel’s global sustainable equities fund, with other actively managed funds targeting a 7% annual reduction in carbon footprint without compromising financial returns.
Cllr Canning says that the results of the latest triennial actuarial valuation, due shortly, will provide further insight into the fund’s long-term health. The previous valuation in 2022 estimated that assets covered 96% of liabilities, up from 92% in 2019.
The annual report says that the value of the Fund’s assets has increased from £3.9bn at the end of March 2024 to £4.1bn by the end of March 2025.
The report notes changes to the membership of the committee during 2024-25. Councillors Simon Christopher, Howard Legg, Mark Roberts and Gary Suttle were replaced by Councillors Andy Todd, Will Chakawhata and Andy Skeats.
Said Cllr Canning: “I thank the outgoing members for their contributions to the Fund and I welcome the input of the new members since joining the committee… The success of the Fund depends upon the combined efforts of all those involved in its administration, and I would like to thank my fellow committee members, Local Pension Board members and our external advisers. My thanks extend to all the staff who support the Fund for their hard work and dedication throughout the year, and also to all our scheme employers.”