Investment strategy review and long-term funding targets

We’ll start by clarifying your scheme objectives, looking at your LTFT and listening to trustees and sponsors. Typical scheme objectives we might work towards are:

• Buy-out – Securing benefits by purchasing an insurance policy. We’re in regular contact with insurers, and keep our pricing knowledge up to date. Our risk transfer service provides robust estimates of the likely buy-out costs, and identifies market opportunities when they arise.
• Low dependency – Giving the scheme enough assets to reduce reliance on the sponsor in the payment of benefits. We use sophisticated risk modelling to project the funding position over time.

With our investment modelling tool, we’ll identify the key characteristics of the current investment strategy. We’ll use the model to help you assess the impact of potential adjustments to the asset allocation. Is it too risky? Are its expected returns high enough? How would adjustments affect the asset allocation?

We can then design a new investment strategy that aligns with your scheme’s objectives, sponsor covenant and circumstances. We’ll strike an appropriate balance between growth projections and the expected volatility of the funding position.