Opportunistic de-risking in the LGPS

As funding positions and bond yields rise, is de-risking on the table? 

Market background

Many LGPS funds have seen significant improvements in their funding position in recent years. At the same time, the lower-risk assets commonly used to protect portfolios by providing some degree of funding stability are looking much more attractive. Index-linked gilts and sterling corporate bonds, for example, are trading at higher yields than they have for the last 15 years. It seems reasonable, therefore, to consider whether now is a good time to de-risk portfolios.