Pension Scheme Investment

The way in which occupational pension schemes are invested has been in the news over the last couple of years. First, there was the liability driven investment (LDI) crisis. Then, in July 2023, chancellor Jeremy Hunt gave a Mansion House speech that unveiled the government’s intention for pension reform in a manner that the government hoped would increase investment by occupational pension schemes in UK productive finance and long-term illiquid assets.

Since then, we have had several consultations, outcomes of consultation and a spring budget, which have included consideration of trustees’ fiduciary duties and the role of pension trustees, the promotion of defined benefit pension scheme consolidation, greater expectations around local government pension scheme investment (including exploring the use of LGPS funds to invest in children’s homes), establishing a public sector consolidator and the possibility of extracting surplus from defined benefit pension schemes.

Our library of resources and insights provide further information.

• We set out our thoughts on the Mansion House package of pension reforms in an insight, along with our response to consultation in relation to options for defined benefit pension schemes
• Our #How2DoPensions quick guide on investments gives an overview of investment duties and considerations for pension trustees
• In this Insight, Christian Toms takes a look at class actions by institutional investors in relation to losses caused when companies publish untrue or misleading/incomplete market statements
• Clifford Sims’ blog on the Odey crisis takes a look at the potential impact that reputational risks can have on the value of an investment
• Our #How2DoPensions quick guide on TCFD reporting illustrates the statutory requirements for trustees of the largest pension schemes
• Our guide to setting a responsible investment strategy will be particularly useful for trustees of smaller pension schemes
• Clifford Sims’ blog post takes a look at the potential implications for pension trustees of a recent case involving charity trustees and their investment powers
• Kirsty McLean’s blog post takes a look at some Sharia law considerations for pension trustees and employers
• Clifford Sims takes a look at the LDI crisis in this blog
• In this pensions life hack, we take a look at understanding risks around derivative contracts

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