UK Pension Fund Embraces Bitcoin with 3% Fund Allocation

An unnamed UK pension fund made investment in Bitcoin, representing 3% of its total assets. 

Strategic Allocation for Long-Term Growth

The fund’s trustees reportedly engaged in a rigorous due diligence process, addressing essential considerations such as Environmental, Social, and Governance (ESG) factors, security concerns, and the investment case for Bitcoin. 

According to Glenn Cameron, Cartwright's head of digital assets, the decision aligns with the pension fund's 10-year investment horizon, viewing Bitcoin as a hedge against economic volatility and a means to diversify the fund’s portfolio.

Sam Roberts, Cartwright’s director of investment consulting, explains that the investment is part of a forward-thinking approach to ensure long-term growth and stability. 

“Trustees are increasingly looking for innovative solutions to future-proof their schemes,” Roberts explained. “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.”

The firm is also planning to launch a Bitcoin Employee Benefits scheme, allowing employers to contribute Bitcoin directly into wallets for their staff. According to Cartwright, five companies have already expressed interest in this scheme.

Catching Up with Global Peers

Cartwright is now urging UK institutional investors to explore Bitcoin investments to avoid lagging behind their international counterparts. Notably, several pension funds and large financial institutions worldwide have already taken steps to integrate Bitcoin into their portfolios.