At this seminar, Gareth Craft and Jack Gillions from the Linklaters Pensions team will discuss some of the key legal hurdles Trustees need to overcome, viewed through the lens of the member’s perspective and experience, on transfers to a DC master trust and when entering the decumulation phase. They will look at some of the key practical and regulatory issues faced by Trustees when giving guidance to help members navigate the options during the decumulation phase, along with the potential legal risks of introducing decumulation options into a scheme at retirement.

The low-rate, low-yield environment of recent years has given way to a new fixed income landscape, presenting both promising opportunities for returns and potential risks to navigate.

Looking ahead, we anticipate higher and more volatile inflation, increased interest-rate fluctuations, a tighter monetary policy, greater market dispersion, and periods of market upheaval. This allows DC investors to have an opportunity to harness the potential for long-term returns through diversified exposure to fixed income. By incorporating that strategic diversification and conducting thorough research, DC investors could have the opportunity to enhance the attractive long-term return potential through active management. Looking at fixed income through a sustainable lens is increasingly important to make the research informative over the long term.

Our conviction lies in the belief that DC investors who combine astute top-down sector rotation with meticulous bottom-up credit and ESG research could potentially benefit from consistent returns, robust downside protection, and low correlations to traditional market betas. By adopting this approach, they can position themselves advantageously to navigate an increasingly dynamic financial landscape.

Sustainable investing is becoming increasingly important for DC pension schemes. Many DC scheme members are increasingly interested in investing in companies and projects that align with their values. Studies have shown that companies with strong sustainability practices tend to outperform those without such practices in the long-term.

With increasing regulations around sustainability, incorporating sustainable investing into DC pension schemes can also help schemes comply with regulations and avoid potential financial penalties. Plus, by incorporating sustainable investing into their investment strategies, schemes can enhance their reputation and attract more members who are interested in sustainability.

This session will address:

• How can schemes affectively measure sustainability without a universal measure or methodology for this?
• How can schemes effectively make informed investment decisions based on data that lacks reliability and comparability?
• Can ESG help drive member engagement?
• How can DC schemes better align with the values of their members?

Content TBC

The challenges facing UK defined contribution (DC) pension schemes is clear. After the relatively stable growth and low inflation of the past four decades, schemes must now contend with high inflation, elevated interest rates and volatile public markets – all of which threaten their members’ outcomes. BlackRock believe in this new market regime, DC schemes should consider private markets – such as private equity, private credit, real estate and infrastructure.

Extending private markets access to DC members through the launch of the LTAF is a natural extension to building better, diversified and more resilient investment portfolios with the focus on helping members achieve financial wellbeing.

Join Hannah Wallis, Alternative Specialist, Melissa Ferraz, Head of Aladdin Alternatives and Claire Felgate, Head of UK & MEA Global Consultant Relations as they discuss the benefits of multi-alternative strategies, strategic asset allocation, sourcing, sustainable opportunities and risk management.