However, US-style class actions are unlikely. Moreover, it is going to take some time yet even for individual claims to materialise.
One likely starting point will be claims against fund managers. Some of the largest fund managers designed and marketed LDI strategies.
Third-party (and currently unregulated) investment consultants who advise on the most appropriate strategies and investments for funds, including strategic asset allocation and asset manager selection, are another obvious target.
If trustees are thought not to have taken sufficient steps to better manage their fund's risk since the crisis last year, they are likely to be tested further.
The general view to date is that the pension trustees might avoid the blow, but it is possible they will be targeted too.
Not only might the fund managers and investment advisers turn in their direction when faced with claims, but claims could also be brought directly against trustees for any breach of duty of care or breach of other fiduciary duties owed to the fund beneficiaries.
Trustees may delegate a significant amount of responsibility to their advisers in terms of strategy and investment, but they still carry ultimate responsibility in terms of understanding how these strategies play out, the risks involved and how to mitigate them.
If it looks like there may have been insufficient mechanisms in place to meet margin calls and manage liquidity, the relevant trustees' decision-making will be closely analysed.
There is a further risk to trustees if there is another bout of market disruption, which in current economic circumstances is a possibility. If trustees are thought not to have taken sufficient steps to remediate or better manage their fund's risk since the crisis last year, they are likely to be tested further.
All-encompassing group actions therefore just won't work – the facts are going to be unique to each fund.
Having said this, a huge wave of class actions seems unlikely and may, in fact, be unworkable. This is not because of any defences available to fund managers and others, but because any losses will be fact-specific.
Pinpointing sustained loss is going to be difficult for trust beneficiaries, yet would be essential to particularise in any claim. All-encompassing group actions therefore just won't work – the facts are going to be unique to each fund.
In addition, those difficulties in identifying crystallised losses may mean it is some time until we see any claims in this field.
