September 2024

As we reflect on September, it’s clear that it’s been a month packed with achievements, welcome recognition, and moments of remembrance. From celebrating industry awards to honouring the legacy of our cherished colleague, Patrick Bloomfield, our team is reminded of the impact and importance of purposeful work, and motivated by that ‘new school year’ feeling that sets in as the leaves start to turn. This edition of our newsletter shines a light on these milestones, and dives into key topics impacting our industry, including the power of intergenerational risk sharing and what the upcoming US election could mean for markets . Let’s explore the highlights and insights that defined the month.

September was filled with achievements and memories for our people. A hat-trick of wins at the Workplace Savings and Benefits Awards;

• Pension Consultant of the Year (5th year in a row)
• Financial Education Provider of the Year (HRPW's first win)
• Diversity and Inclusion Excellence Award (A first for the firm)

These wins highlight our team’s passion and commitment, and it didn’t stop there for us. We’re delighted to share that we’ve successfully retained our ENEI Gold Award for another year, recognising our unwavering commitment as an employer to excellence in diversity, equity and inclusion.

In memory of our beloved colleague, Patrick Bloomfield, our London office held a week-long sponsored cycle in support of the British Heart Foundation. Three stationary bikes were set up in the office, and colleagues took turns cycling in 30-minute slots. Alongside their efforts, they donated and guessed the total distance cycled. The result? An incredible 827.8 km covered, and an even more impressive ￡2,720 raised!?

What do intergenerational risk sharing and dynamite have in common? Both pack incredible power. And, if not handled properly, can lead to unintended consequences. In our latest paper, we explore the strength of intergenerational risk sharing and how Collective Defined Contribution (CDC) schemes can potentially outperform traditional pension designs, often offering higher, regular incomes for members.

Our modelling suggests that CDC’s can deliver up to 50% higher secure income for life than a typical DC scheme, but that’s not the case for all members. CDC moves the risks from older people to younger people who are more able to bear them. Because of this, it enables trustees or providers to take more risk in aggregate on behalf of members and thus seek higher returns.

Read more in our publication: https://bit.ly/3TLRAhk

With the US election just around the corner, the markets are bracing for potential volatility. Uncertainty makes investors uneasy. And as polling data shifts leading up to 5 November, Hymans Robertson Investment Services caution against making any significant investment decisions based on the potential outcomes of the election. So, what outcomes could we see?

• A Republican clean sweep may trigger early volatility but could offer longer-term relief with lower taxes and deregulation. However, some fear inflationary policies could push interest rates higher.
• If the Democrats retain the Presidency and take Congress, initial stability may be welcomed, but the market could face pressure from higher taxes and debt over time.
• Interestingly, markets historically favour divided government, offering perceived stability and a check on extreme policies—though political gridlock could increase volatility.

Learn more from Hymans Robertson Investment Services here: https://bit.ly/3XBR8n4

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Employer engagement for the 2025 LGPS valuation – 9th October

2024 LGPS academy accounting disclosures - the results – ?16th October

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