De-risking of Defined Benefit Investments

 

Increasingly trustees in consultation with a Scheme’s employer are looking to de-risk and set funding objectives linked to an exit strategy for the scheme.

 

Journey Planning

 

We can work with your actuaries to establish a ‘Journey Plan’ designed to meet your chosen objective within agreed risk metrics over an agreed time frame.

 

Ongoing Funding Level Monitoring

 

Our online service provides ongoing updates of a scheme’s funding level. 

 

 

Timely monitoring of the progress being made relative to the Journey Plan and objective will enable you to react much more quickly to unfolding or changing events than has historically been the case.


Daily updates

 

Using scheme specific asset splits (or proxies if not available) the scheme assets can be rolled forward on a daily (or monthly) basis and compared with changes in the value of a scheme’s liabilities.  This enables trustees and all other stakeholders in the scheme to monitor the changing deficit and movement towards the funding objective in addition to the level of funding risk compared to a previously agreed budget.

 

Specified Triggers

 

Our online service enables favourable experience to be acted upon and captured quickly and efficiently. As part of the Journey Plan the trustees can initiate thresholds e.g. stated funding levels being breached that trigger pre-agreed actions. These can involve for example reducing a scheme’s growth assets or increasing the protection against changing interest rate or inflation risks and can provide increased confidence that the funding goals can be reached within the agreed time frame.

 

Alerts

 

You can be informed when a trigger point is close to or has been breached as part of the online service thereby ensuring prompt action can be taken if required.

 

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Business Development

Sankar Mahalingham

07436 792 261