UK Investment Insights
Asset allocation trends in the UK
Defined Benefit Trends Report - Key findings
| Investors were prescient about 2022 | Governance lessons learned from last two years | Seeking more bang for the buck in fixed income |
|---|---|---|
| Monetary tightening, a stock market correction, an energy crisis and a major geopolitical event were the leading concerns for investors going into 2022 and they proved to be correct on all fronts. | Following the turbulent journey of the last two years, the overwhelming majority of investors plan to review investment strategy, manager mandates or make other governance-related changes. | For income-producing portfolios, investors are considering branching out into private debt, real asset funds and multi-asset income funds but following the events of 2022, we expect that liquidity management will come more to the fore. |
Sustainable Investment Report – Key findings
| Integration of ESG | Dedicating resources to sustainable investment | Transitioning to net zero |
|---|---|---|
| Environmental, social and governance (ESG) is well integrated into the vast majority of UK investors’ arrangements: 73% are incorporating ESG into their investment strategy decisions, and 83% into their selection of investment managers. | 10% of advisory schemes have dedicated resources focused on sustainable investment. Of those that don’t, 16% say they are likely to dedicate resources to sustainable investment within the next year. | Around one-eighth of advisory clients have set net-zero carbon targets, and almost one-fifth are using a low- carbon or climate-related index. 17% of those that aren’t currently using such an index do however plan to do so over the next year. |
- UK Sustainability Integration Lead
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