Investment strategy review

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Helping trustees make informed investment decisions

An investment strategy for a fully funded scheme tends to be relatively cautious – intended to deliver modest growth, but above all designed to protect the funding position.

If the scheme has yet to achieve full funding, a different investment strategy may be required. This will typically offer higher expected returns. But with that comes increased risk.

Investment strategy is complex, and many trustees miss opportunities by failing to review it when circumstances change.

How can First Actuarial help?

We can help keep your investment strategy in line with overall scheme objectives, striking the right balance between growth projections, expected return and the funding position. We consider two key questions at the start of an investment strategy review:

  • Which long-term funding measure should we use?
  • How should we invest the assets once we’ve achieved full funding on that measure?

We can also help you consider how the asset allocation is likely to evolve as the funding position improves over time. This is consistent with the long-term funding target approach that The Pensions Regulator now encourages.

Our investment modelling helps us work with clients to assess their current investment strategy. 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 which aligns with current objectives and circumstances, taking the sponsor covenant fully into account.

Once a strategy has been agreed, we help trustees to consider adjustments over time, to ‘lock in’ funding gains as they occur and move progressively towards the long-term funding target.

Why choose First Actuarial?

For us, investment strategy is a conversation rather than a lengthy, indigestible report. Our consultants provide the support and explanations needed as the conversation progresses, focusing on the areas of greatest interest to the trustees.

When discussing investment strategy options with trustees, we work closely with the Scheme Actuary. This will often be a First Actuarial colleague but can just as easily be a third-party actuary.

Our in-house software helps trustees choose between investment strategies.

Learn more about our investment strategy review service

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Get in touch

Get in touch with one of our investment consultants to discuss how we can help you.

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Investment briefings

We produce regular briefings to update trends on the latest market developments.

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Advice is sound and does not over-complicate things, as has been the case with some other providers.

Monitor your scheme investments with First Actuarial’s Client Hub

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