Cartwright, a UK-based actuarial and investments specialist, has achieved a significant first in the British retirement market. The renowned pensions advisor announced that it guided an unnamed retirement benefits scheme in integrating Bitcoin (BTC) in its investment portfolio.
The history-making allocation occurred in October following extensive deliberations with the scheme’s trustees. Those talks saw the fund’s leadership allocate 3% of its portfolio to BTC. Cartwright stated that the clincher was BTC’s asymmetric returns nature and the comprehensive risk management measures the scheme had adopted.
Sam Roberts, Cartwright’s Director of Investment, said:
“Trustees are increasingly looking for innovative solutions to future-proof their schemes in the face of economic challenges. This Bitcoin allocation is a strategic move that, not only offers diversification, but also taps into an asset class with a unique asymmetric risk-return profile.”
~Sam Roberts
Roberts added that the advisor’s approach guaranteed that the scheme would tap into BTC’s huge potential upside while shielding it from its possible downsides. He also hailed the trustees’ decision to blend the premier crypto asset in the scheme’s investment strategy as a bold step reflective of their forward-thinking nature.
Cartwright’s solution allows risk-averse pension schemes to benefit from Bitcoin
Cartwright’s Head of Investment Implementation, Steve Robinson, also expressed excitement at the scheme’s move. He said the investment’s design allowed it to profit instantly while maximizing the asset’s security.
Robinson also affirmed their commitment to engaging with innovative technologies, putting pension fund trustees at the forefront of investment solutions. He held that Cartwright’s solution would incentivize risk-averse retirement schemes to seek BTC’s growth potential while managing its volatility under a safe and prudent framework.
He added that the solution caters to all pension schemes regardless of size because of its low minimum investment requirement. That, and his firm’s secure custodial approach, convinced him that they would provide the scheme’s members with long-term value.
Pension funds are diversifying into Bitcoin
There is an emerging trend where pension schemes are embracing BTC to hedge against global currency inflation and diversify their portfolios.
Other retirement funds that have recently made headlines for adopting crypto are the State of Wisconsin Investment Board and the Michigan Retirement System. Whereas the former has committed $160 million in BTC Exchange Traded Funds (ETFs), the latter has invested some $6.6 million in BTC ETFs and another $10 million in Ethereum-linked ETFs.
Cartwright compares its UK foray to the early days of equities and high-yield bonds adoption in the 1970s and 1980s. Therefore, it remains optimistic that the country’s pension schemes will embrace this shift.
