Winter 2023 Investor Agenda

Welcome to our Winter Edition of Investor Agenda

ESG continues to be a developing area for trustees. In recent months we have seen the first fine issued by the Pensions Regulator in relation to TCFD reporting, a court judgment in relation to members bringing claims in the name of a trustee company in respect of ongoing fossil fuel investments, the publication of the recommendations of the Taskforce on Nature-related Financial Disclosures and a consultation by the Taskforce on Social Factors. In this edition, we provide an update on all these key developments.

In recent editions, we have provided updates in relation to the pension fund exemption from clearing derivatives. In this edition, we provide a further update following the publication by HM Treasury earlier this month of a call for evidence in relation to a longer-term policy which would not rely on further exemptions.

As many DB schemes contemplate “end game” strategies in light of improved funding positions, much discussion is being held around buy-out and run-on options. A key factor for trustees in this decision is the relative strength of the covenant provided by scheme sponsors as compared with that provided by a relevant insurance company. In this edition, we explore some of the key considerations for trustees to consider when considering this issue.

Please do let us know if there are any specific topics you would like us to address in the next edition of Investor Agenda