United Kingdom actuarial and investment firm Cartwright recently made history in the British retirement market. According to a statement from the firm, it has guided one of its schemes into integrating Bitcoin into its investment portfolio.
The firm made the decision last month, following several consultations with trustees of the scheme. After the deliberations, the firm decided to allocate 3% of its funds to Bitcoin. The United Kingdom investment firm noted that Bitcoin’s high returns and risk management were the deciding factors in the financial option.
Cartwright director of investment Sam Roberts said investors are always open to innovative investment options to shield their funds in the face of economic challenges. He also mentioned that the choice of Bitcoin promises diversification into another asset class and increased profits.
Cartwright plans to shield funds from Bitcoin’s downside
Roberts noted that Cartwright’s approach will enable users to enjoy profits during Bitcoin’s upside and shield them from staggering losses during its downside. He also commended the trustees on their decision to include the asset in their books, calling it a forward-thinking initiative.
The firm’s Head of Investment implementation Steve Robinson was also excited at the prospect of including Bitcoin in the scheme’s books. He said the decision will enable the investment to enjoy the asset’s security while maximizing profits.
Robinson also discussed the likelihood of engaging with other innovative technologies. He noted that the trustees would have to make the decision, but the firm would provide them with these solutions. He clarified that Cartwright’s approach will push other schemes to explore Bitcoin’s potential while managing its volatility closely.
Pension funds are moving to Bitcoin
Steve Robinson also discussed the potential of Bitcoin to cater to all and every pension scheme regardless of their size. This is because of the low investment requirements. He noted that he is convinced that his firm will provide the scheme members with long-term value due to their custodial approach.
Aside from Cartwright, pension funds are moving to Bitcoin steadily. While most are trying to hedge against global currency inflation, others are trying to diversify. Others that have been in the news for adopting Bitcoin include the State of Wisconsin investment board and the Michigan retirement system.
The State of Wisconsin Investment Board entered the space with an investment of $160 million in exchange-traded funds (ETFs). Meanwhile, the Michigan retirement system invested $6.6 million in Bitcoin ETFs and $10 million in Ethereum-linked ETFs.
Cartwright views its Bitcoin foray in the United Kingdom as the early days of equities and high-yield bonds adoption in the 1970s and 1980s. Therefore, major pension schemes will enter into the digital asset market.