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CASE STUDY
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Ballast meaning
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What does Ballast mean?
In investment and portfolio management, ballast describes holdings selected to stabilise overall returns, reduce volatility and provide liquidity. It is a descriptive market term, not defined in legislation or case law, and is used consistently across England & Wales, Scotland, Northern Ireland and Ireland.
Ballast typically comprises high‑quality, liquid, lower‑risk assets—for example short‑ to medium‑dated government bonds (UK gilts, Irish government bonds), investment‑grade corporate bonds, inflation‑linked bonds, cash and cash equivalents. In legal practice the concept appears in portfolio construction and asset allocation within investment mandates, statements of investment principles and investment policy statements for trusts, pension schemes and charities. Including ballast helps fiduciaries discharge duties to manage risk, diversify investments and meet foreseeable cash‑flow needs and liabilities, as required by applicable trust law and pensions investment regulations.
Key legal and practical features: capital preservation and drawdown mitigation; liquidity for benefit payments, distributions and collateral; potential negative correlation with growth assets. Limitations: typically lower expected returns; exposure to interest‑rate, inflation and credit risk; correlations can change in stressed markets. Synonyms include “defensive” or “liability‑aware” assets.
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View the related News about Ballast
NEWS
UK and EU environmental law weekly update: emissions trading, energy and nuclear, ESG reporting, UK REACH, waste and producer responsibility, biodiversity, marine, water and litigation—26 February 2026
In this issue: Air emissions and climate change Energy for environmental lawyers Environmental disputes and proceedings Environmental permits and consents Environmental taxes, reliefs and incentives ESG and sustainability Hazardous substances and chemicals Marine Nature, biodiversity and habitat conservation Waste Waste producer responsibility regimes Water, flooding and drainage Daily and weekly news alerts New and updated content Air emissions and climate change DESNZ releases quarterly waste data reporting template for the UK ETS. The Department for Energy Security and Net Zero (DESNZ) has issued a template for quarterly waste data submissions under the UK Emissions Trading Scheme (UK ETS). It is designed for waste operators to use when sending quarterly data reports to their regulator during the voluntary monitoring, reporting and verification (MRV) period. See: LNB News 19/02/2026 50. AFME responds to European Commission consultation on climate resilience legislative framework. The Association for Financial Markets in Europe (AFME) has provided...
26 February
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View the related Practice Notes about Ballast
PRACTICE NOTES
CJEU requires Commission to specify undertaking’s capacity and liability period in cartel decisions: Ballast Nedam v Commission (Dutch bitumen cartel)
CASE HUB ARCHIVED This archived case hub sets out the position as at the judgment dated 27 March 2014; it is no longer being maintained...
21 May
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PRACTICE NOTES
Invasive non-native species: regulation, offences, enforcement powers, species control orders, policy and civil liability
What are invasive non-native species? An invasive non-native species (INNS) refers to any animal or plant introduced from outside that can spread and cause harm to the natural world, the economy, our health, or daily life. The GB Non Native Species Strategy 2023–30 notes that, by 2021, roughly 2,000 INNS were established in GB, with a further 10 to 12 becoming established each year. This picture is echoed internationally and, without sufficient intervention, numbers will keep rising for the foreseeable future. Climate change is expected to raise the risk posed by many INNS that previously could not take hold. In October 2019, the Environmental Audit Committee (EAC) released its report on invasive species, finding they cost the UK economy £1.8bn per year through damage to natural biodiversity, disease spread, and other adverse environmental effects. In May 2020, the government indicated it would consider setting up a Nature Volunteer Force to monitor invasive species in response to the 2019 report. Thus far, those proposals have not been formally progressed. The...
26 May
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