Optimising investment strategy at the 2023 valuation - Sixty Second summary

Funding plans that are optimised for each employer in an LGPS fund result in the best possible funding outcomes. The contribution strategy is the key focus and outcome of a valuation, but don’t forget about optimising the other tool at your disposal – the investment strategy.

In the absence of investment returns, LGPS benefits would cost upwards of 70% of pay. A return of 4% pa brings this down to around 20% of pay. Achieving this return, whilst balancing the associated risk with investing in financial markets, is key to the long-term sustainable funding of LGPS benefits.

In this 60-second summary, we explore: 

• Where and when to focus on your investment strategy

• Optimising your strategy in 2023

• Themes at 2023 valuation

• Employer focused investment strategies

• Implementing different investment strategies

If you'd like to understand more, you can of course get in touch with your usual Hymans contact who'll be happy to help, or get in touch here.