Winter 2022 Investor Agenda

Welcome to our Winter Edition of Investor Agenda.

Many schemes have seen a turbulent final quarter in 2022 as a result of the market volatility following the “mini-budget”.  In this edition, we take stock and comment on how trustees’ investment duties interact with the liquidity issues schemes have faced during this crisis, and discuss what developments may be in store for LDI strategies in the future.

Looking ahead to next year, the exemption currently applicable to occupational pension schemes in relation to clearing OTC derivatives is set to expire, and is not currently expected to be extended. Therefore, schemes need to be prepared to clear their in-scope derivates with effect from June 2023. Trustees should start planning for this and liaising with their advisers now to avoid a last-minute rush. 

In the DC space, we have received the Government consultation this quarter on the proposed exemption of performance-based fees from the charge cap to facilitate DC schemes’ investments in illiquid assets and we comment on the proposed new requirements.

As always, we welcome your views on our publications and topics you would like to see covered – please do contact me or your usual Linklaters contacts if you would like to provide feedback.