BMA loses millions in stock market crash

18 Jun 09

The BMA’s annual accounts, which will be presented to the Annual Representative Meeting later this month, show unprecedented losses, which the association blamed on ‘extreme financial turmoil.’

The value of the association’s investment portfolio fell £28m and the net pension deficit increased by £28.3m, while the value of all other net assets increased by nearly £5m over the year. The treasurer reported a consolidated net deficit of £9.7m - and a decrease in the value of the association’s net assets of nearly £52m.

The figures come as the association revealed it would be recommending an across-the-board subscription rate rise of 2.0%, although a BMA spokesperson said this was unrelated to the investment losses.

Dr David Pickersgill, the BMA’s Treasurer and a retired GP, defended the losses, which he described as ‘a disappointment’, in the BMA’s Annual Report of Council.

He said the BMA was in a stronger position than many because it was not reliant on raising funds from credit or capital markets.

‘In these respects, the Association was, and is, better placed than many other organisations to manage its financial position in a period of great uncertainty and anxiety,’ he said.

‘The Association, however, does have a significant amount of investments, and, therefore, the major deterioration in global markets during 2008 has weakened its balance sheet.’

A BMA spokesperson added that the BMA’s investment committee ‘continually reviews’ its assets and the performance of fund managers.