FM+

The protected run-on solution

We know that the end game options for well-funded schemes with strong covenants are increasing, so we developed FM+ for just such schemes. It is intended to allow schemes to run-on productively, secure in the knowledge that the scheme will be managed by a highly experienced investment team and receive downside protection by a third-party insurer.

Surplus can be built up further and regularly released, used for the benefit of pensioners, current employees and/or the sponsor.

Quick facts FM+, the protected run-on solution

FM+ allows schemes to run-on in a risk-controlled way, building up a surplus to create additional value for sponsors, DB and DC scheme members.
The impact of funding shocks is mitigated because of funding protection provided by a major third-party insurer.
Assets are managed by an experienced fiduciary pensions team within a highly bespoke and conservative strategy.
The assets are invested to take advantage of investment growth, with a longer term objective of achieving a cost effective buy-out at a nominated point in the future (typically over 5-10 years).

Infographic

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.

New

Introducing FM+

Not so long ago sponsors and trustee boards had few options beyond handing the entire scheme assets and liabilities to an insurer.

Now there are potentially attractive options, particularly for well-funded schemes. It doesn’t have to be the end and it’s not a game - introducing FM+

Video

FM+ for surplus

As custodians of pension assets for future
generations, trustees might consider alternative long term funding solutions. We explore this in our latest video.

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Our team

There’s a saying in Dutch, Kom verder, it means many things and it’s our business philosophy. It captures the way we work with clients but also the way we steer our investee companies to deliver shareholder value through active engagement.

Capital at risk. The value of investments and the income from them can fall as well as rise, and investors may not get back the amount originally invested. Past performance provides no guarantee for the future.

Van Lanschot Kempen Investment Management (UK) Limited is registered in England & Wales with registration number 02833264. Registered office at 20 Gracechurch Street, London, EC3V 0BG Tel: +44 (0)20 3636 9400. Van Lanschot Kempen Investment Management (UK) Ltd, is authorised and regulated by the Financial Conduct Authority (FCA) with reference number 166063.

FM+

Potential for DB Surplus

Introducing FM+

FM+ for surplus

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Insights

Our team

Andre Keijsers

Vicky Casebourne

Hattie Walton

Georgia Sangster