Rethinking Pensions Liquidity Investment

The frequency of market and economic events impacting the money markets has increased since the Global Financial Crisis, and what was perhaps a once in a decade (or even a once in generation) event now seems to occur with much greater regularity. In recent years this has included the initial onset of the COVID-19 pandemic in 2020 and the resulting demand-driven shock to markets around the world, the invasion of Ukraine in March 2022, the volatile market reaction to the short-lived “mini-budget” in the UK in September 2022, and the recent banking crisis in March 2023. As well as being more frequent, each crisis can stimulate ever greater sensitivities to risks in all corners of the market, which can amplify this fragility.

These types of events can have a direct impact on the money markets, whether that is driving investors on the demand side to have urgent cash calls, or conversely to hold higher levels of cash as a buffer, or whether it is driving market sentiment towards issuers and counterparties.

This market disruption is a prompt to review and rethink your cash investment approach.

Read our whitepaper to find out about how you can diversify to protect your cash from Hugo Parry-Wingfield, our EMEA Head of Investment Specialists, and watch our webinar ‘Rethinking Cash’, where Jonathan Curry, our Global Liquidity CIO & CIO UK, discusses these risks alongside Zuhair Mohammed, Partner and Head of Investment, LCP, and Mark Thompson, Independent Pensions Professional.