Demand for inflation hedging to lead to £200bn scheme loss

Negative real returns coupled with RPI reform mean schemes will see a big impact

James Phillips
clock • 2 min read
Demand for inflation hedging to lead to £200bn scheme loss

Pension schemes are facing losses of up to £200bn as their search for inflation protection drives them to negative real returns ahead of reform, PwC analysis finds.

Around £550bn of defined benefit (DB) scheme assets are tied up in gilt investments but with another £1.25trn of DB assets within the universe, this is leading to supply and demand issues. Conse...

To continue reading this article...

Join Professional Pensions

Become a Professional Pensions Lite Member today

  • Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
  • Receive important and breaking news stories via our two daily news alerts
  • Hear from industry experts and other forward-thinking leaders

Are you a trustee, investment consultant or in-house pension and benefit scheme professional? You can apply for full complimentary access here

Join now

 

Already a Professional Pensions
member?

Login

James Phillips
Author spotlight

James Phillips

Professional Pensions journalist from 2016-2022

More on Investment

First scheme to make Bitcoin allocation posts first year return of 56%

First scheme to make Bitcoin allocation posts first year return of 56%

Bitcoin outperforms other assets during year, but recent crypto selloff dents gain

Jonathan Stapleton
clock 11 December 2025 • 2 min read
Partner Insight: Diversification benefits of US securitised credit

Partner Insight: Diversification benefits of US securitised credit

Securitised assets in the US offer diversification benefits in a marketplace that, following post-financial crisis regulation, offers attractive yields for its high-quality nature writes the Columbia Threadneedle Structured Assets team.

Jason Callan, Ryan Osborn and Luke Copley at Columbia Threadneedle Investments
clock 11 December 2025 • 8 min read
Northern LGPS and LPPI acquire 5,000-home portfolio in £1.1bn deal with PRS REIT

Northern LGPS and LPPI acquire 5,000-home portfolio in £1.1bn deal with PRS REIT

Joint venture aims to grow the portfolio by more than 15,000 homes over the next decade

Jonathan Stapleton
clock 10 December 2025 • 2 min read
Trustpilot