Welcome to the fourth update for the LCP strategic portfolio for UK defined benefit pension schemes.

Inside you will find the latest thinking from our investment strategy team and specialist asset class researchers. 

In this edition we focus on:

• The second quarter of 2021 that was, from a market perspective, quite benign after the volatility experienced since early 2020.
• Risk assets that have performed strongly since March 2020.
• The risk of inflation rising markedly over the next few years. We discuss how this may impact pension scheme portfolios and how we have addressed this risk (and opportunity) in the strategic portfolio asset allocation.