Beyond buy-out
We recognised that these, sometimes seismic, market shifts would present opportunities for our clients and others, so we focused our efforts on designing solutions to help schemes navigate the new environment.
For smaller schemes, looking to consolidate their scheme and reach the best buyout solution for their members we partnered with some of the most exciting consolidators in the market today – Clara-Pensions and Cheviot Trust. For larger, well-funded schemes we created a new fiduciary managed solution, underwritten by a third-party insurer allowing schemes to run-on with downside protection – we all this FM+.
Potential for DB Surplus
Let's talk about the UK DB Surplus - at £150bn it’s already pretty substantial but our analysis shows that this is likely to grow to a considerable sum in the next 10 years. Schemes “running on” will become more commonplace and we are actively talking to clients about our innovative solution and the opportunities it offers a well-funded scheme.
FM+ The protected run-on Solution
We know that the options for well-funded schemes with strong covenants are increasing so we developed FM+ for just such schemes .
Innovative consolidators
We are proud to be the fiduciary manager for both Clara-Pensions and Cheviot Trust – both very different master schemes.
Strategies for winning the end-game
In recent years, the pensions landscape has changed drastically. The significant rise in gilt yields over the past two years has resulted, on average, in sizeable improvements in scheme funding positions, accelerating the journey to their endgames. This has made the discussion about endgames more pertinent for trustees, sponsors and advisers.
This paper aims to broaden the thinking around the pensions endgame, acknowledging that buyout is the Gold Standard, but simultaneously raising the question “is it the be-all and end-all?"