Disclaimer: Views in this blog do not promote, and are not directly connected to any L&G product or service. Views are from a range of L&G investment professionals, may be specific to an author’s particular investment region or desk, and do not necessarily reflect the views of L&G. For investment professionals only.
LGPS Intelligence: Options for mitigating equity risk
With LGPS funding levels much improved and US equities near all-time highs, what options do LGPS funds have to guard against potential equity market falls?
Given average equity allocations of c.50%[1] and limited fixed income allocations, LGPS funding positions are at historically high levels.
In light of the upcoming triennial valuation on 31 March 2025 for England and Wales, many LGPS funds are likely to be considering how best to maintain these improved funding positions without overly compromising on expected returns.
In Scotland (where the valuation was 31 March 2023), LGPS funds will be finalising their valuation results and considering strategy implications given significantly higher funding levels.
In our latest LGPS Intelligence article, we consider what the future could hold for equity markets, and how we believe the LGPS could employ equity protection strategies to seek to provide stability to their funding position with minimal outlay.
Click here to read the full article.
If you’ve enjoyed this blog post, please click here to discover more of our content that’s specifically tailored for DB schemes.
You can also sign up here to receive the latest content most relevant for you via email.
[1] Source: PIRC annual review September 2023 LGPS Scheme Advisory Board – Investment (lgpsboard.org).
Recommended content for you
Learn more about our business
We are one of the world's largest asset managers, with capabilities across asset classes to meet our clients' objectives and a longstanding commitment to responsible investing.
