LGPS Investment Outlook 2023

First LGPS Annual Investment Outlook

The aim of the publication is to provide our perspective on key investment issues facing the LGPS in the year ahead. 2022 proved to be a turbulent year and we expect 2023 to be similar. The weak outlook for global growth, persistently high inflation and elevated geopolitical risks are likely to create significant challenges for LGPS funds, but also new investment opportunities. At the same time decarbonisation remains a key imperative for the sector.

To help investors navigate these challenges and opportunities, we offer our views on:

• Our outlook for each key asset class in the year ahead.

• A heads-up on prospective regulations and the likely implications for LGPS funds.

• The Levelling Up agenda and its role in stimulating local investment opportunities.

• Achieving Net Zero in private markets and the challenges and opportunities that are likely to arise.

• The implications of becoming cashflow negative far sooner than expected due to high inflation, and how funds might respond.

• The rationale for continuing to invest in the UK despite the headwinds facing our economy and capital markets.

• The role renewable infrastructure can play in funds’ Net Zero roadmaps.

We hope you find the articles of interest and, of course, our consultants would be happy to discuss any of the topics covered with you.

If you have any questions on anything covered, please get in touch.