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Why are LGPS funds considering gilts?

With LGPS appetite for UK government bonds on the rise, William Bourne, independent adviser to the LGPS at Linchpin Advisory considers the pro’s and con’s.

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The clearest trend in the recent Room151 LGPS survey is the increasing interest in gilts. The principal reason must be the returns on offer

An increase in assets and improving funding levels paint a positive picture for the LGPS, but changes to contribution rates, valuation assumptions and costs reveal a more complex financial outlook.