Why DB schemes are falling behind on greening their portfolios

Funds unlikely to be able to access the illiquid assets central to green transition

clock • 7 min read
Why DB schemes are falling behind on greening their portfolios

As the dust starts to settle on last year's liability-driven investment (LDI) crisis, there is an opportunity for closed private sector defined benefit (DB) schemes to embed sustainable investment principles throughout their portfolios.

The increase in long-dated gilt yields throughout last year meant pension schemes needed to post collateral in order to maintain their interest-rate hedges. This became a crisis in the autumn when ...

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