Cartwright Becomes First UK Pension Scheme to Invest in Bitcoin after Allocating 3%
Sam Roberts says "Trustees are increasingly seeking innovative solutions to future-proof their schemes against economic challenges."
Cartwright, a leading pension specialist, has announced the first Bitcoin allocation into the investment portfolio of a UK pension scheme.
However, the historic decision, executed in October, saw trustees of an unnamed scheme opt for a 3% Bitcoin allocation, recognizing the potential for long-term growth within a diversified portfolio.
Cartwright’s decision to integrate Bitcoin into the pension scheme’s investment strategy marks a significant shift for the traditionally conservative UK pension sector.
The firm highlights Bitcoin’s unique asymmetric risk-return profile, enabling a small allocation to generate substantial financial gains while mitigating potential downside through robust risk management at both scheme and asset levels.
Sam Roberts, director of investment consulting at Cartwright, commented on the strategic move: “Trustees are increasingly seeking innovative solutions to future-proof their schemes against economic challenges. This Bitcoin allocation not only offers diversification but also taps into an asset class with a distinctive asymmetric risk-return profile.”
Cartwright Bitcoin Integration Explained
He further emphasized the firm’s commitment to ensuring schemes can benefit from Bitcoin‘s upside potential while managing downside risks. “Our approach allows schemes to capitalize on the significant potential upside while limiting the potential downside.
Furthermore, “Integrating Bitcoin into a pension scheme’s investment strategy is a bold step reflecting the forward-thinking nature of the trustees involved. We hope this pioneering move will inspire other institutional investors in the UK to follow suit and embrace Bitcoin’s unique attributes.”
Steve Robinson, head of investment implementation at Cartwright, highlighted the operational procedures designed to maximize security and facilitate profit realization: “The operational procedures around this Bitcoin investment have been meticulously crafted to ensure maximum security while allowing for swift profit taking when opportunities arise. Our dedication to actively engaging with emerging technologies allows us to ensure trustees remain at the forefront of investment solutions.”
He emphasized the accessibility of this investment opportunity for schemes of all sizes: “The solution we created also has a low minimum investment threshold, making it accessible to pension schemes of all sizes, unlike many historic investment ideas in their early stages. We are confident that this strategic move, coupled with our secure custodial approach, will generate long-term value for scheme members while offering an innovative way to reduce reliance on employer contributions.”
