'Safe' pension investment strategies could be negligent

Law firm Reynolds Porter Chamberlain (RPC) says although a number of claims have been launched against pension trustees and their advisers who took high risks on the equity markets before 2001-2002, it warns investment strategies which are more conservative than normal but which still leave a deficit could also attract negligence claims. It says a poor performance by equities in 2001/2002 has led to an increase in the use of liability driven investment (LDIs) strategies where entire portfolios have been shifted into “safe” investments such as gilts or a mixture of gilts and corporate bond...