2023 proved to be a curious year for the global economy and despite rising geopolitical risks and the cost-of-living crisis, the global economy remained resilient. Unfortunately, the outlook for 2024 is a little bleaker and investors need to be both patient and cautious. Shweta Singh explains more in this outlook article.
For a pensions market that is all but closed to new members, defined benefit (DB) pension schemes and perhaps primarily the Government, are not resting on their laurels. In this outlook article, Kerrin Rosenberg outlines what the year has in store for UK DB pensions.
We are pleased to share the following insights from across our Group – Cardano UK (Advisory and Investment), Cardano NL, and NOW: Pensions – looking ahead to what’s in store for 2024.
The importance of DEI in pension scheme trustee boards is gaining momentum. We recently held a roundtable event to discuss the topic in more detail and to explore the results from the DEI survey we conducted in partnership with mallowstreet.
Pension scheme trustee boards have never had such a tough job to do. Increasing demands are coming from all directions; whether that be from regulatory scrutiny, enhanced ESG reporting, volatile investment markets or, as the economic environment becomes more challenging, from covenant risk.
2022 has been the year where the global bond markets have finally woken up to the reality of central banks’ stimulus being removed from the bond markets.
Macroeconomics: Patience will be required in 2023. Global investment markets start the New Year at a pivotal stage within the economic cycle. Many economies are transitioning from slowdown towards inevitable recession.
Investment solutions: Keep calm and carry on…just not like 2022. 2022 has been another year of surprises that tested pension schemes in new and varied ways.
The great divide. Pension scheme trustee boards and sponsoring companies will wake up on 1st January in a very different place to where they were a year ago.
Cardano Group response. The draft Regulations are heading in the right direction in seeking to support trustees and employers in planning their scheme funding over the longer term and we are supportive of the intention to improve risk management through covenant-driven investment and funding strategies and a long-term objective of reducing reliance on covenant.
Our model of influence comprises of three key forms of influence, based on how direct an impact these actions have. We believe investors should maximise their influence to achieve real-world sustainability impact.
