Navigating the way forward

UK occupational pension trusts are navigating a wide range of circumstances and need assets that can grow in value.

The background

Already aware that part of the solution could be to target higher investment returns or investing in growth for longer, we estimated that bitcoin could have a legitimate role for c500 DB trusts and the majority of DC trusts…

We began working with the Client in 2018 as their investment consultant. As with any client, we considered a comprehensive list of potential asset classes taking into account their specific circumstances;

An employer covenant
The scheme was assessed as ‘tending to weak’, which meant they had to run at a fairly low investment risk.
An immature scheme
70% deferred and 30% pensioners, which would take time for insurance to become affordable.
Recovery plan contributions
There was a heavy reliance on the employer due to significant recovery plan contributions.
A long time horizon
Ten years to fully funded on a low dependency basis and 15 years to buyout.

Over the years, we have worked closely with them, and they have always approached ideas with an open mind. During this time, they had already embraced and implemented other innovative ideas, such as illiquid assets and LDI.