News releases

Accessible & Affordable - Welcome to Schroders ‘Flight Path Swift’

Schroders is today announcing the launch of Flight Path Swift, a uniquely flexible defined benefit investment solution for smaller pension schemes, designed specifically to focus on increasing funding level protection.

20/05/2013

Schroders is today announcing the launch of Flight Path Swift, a uniquely flexible defined benefit investment solution for smaller pension schemes, designed specifically to focus on increasing funding level protection. Made up of best practice investment building blocks of both growthi and matching assetsii, Flight Path Swift provides an integrated decision making and investment framework.

With Flight Path Swift, the scheme’s funding level is monitored daily against its pre-agreed triggers and action is taken when a trigger is met.

A recent independent surveyiii undertaken by UK pension scheme managers, trustees and independent consultants provides a key insight into pension scheme funding and decision making. Our survey has provided further evidence as to the importance of trustees having a plan that allows them to manage funding level risk effectively. Respondents were asked:

  • 'Has your scheme been fully funded over the last 10 years?’ 44% of respondents said yes, 56% said that it had not. However, when we went onto ask ‘Is your scheme fully funded today?’ only 6% said their scheme was fully funded, leaving 94% of the respondents with a short fall in their pension scheme
  • ‘How often do you monitor your scheme’s funding level?' Only 2% monitored daily, 7% weekly, 32% monthly, 46% quarterly, 12% annually and 1% only monitored their scheme’s funding level at triennial valuations
  • ‘How much time does it take for a strategy decision to be implemented?’ 33% of the respondents answered within a month, 31% of respondents said within a quarter, 19% said longer, 11% said within a week and 6% said immediately

Mark Humphreys, Head of UK Strategic Solutions, commented:

“At a time when pension scheme trustees are looking for comfort that funding level risks are being managed, we have created a best practice investment solution at an affordable fee for pension schemes of all sizes – many of which historically would have been too small to access such a solution. We are able to do this by focusing on the core elements of the existing well-established Schroders Flight Path offering. The fee structure of Flight Path Swift is totally transparent, reflecting a building block design, with a low minimum fee.

“Every element of Flight Path Swift has been designed with ease of use in mind, from the documentation to the straightforward way you can invest and change the strategy. Clients and their advisers are involved in the big decisions- we can take care of the rest.”

i A wide range of Schroders growth funds are available. Examples include the Schroder Life Diversified Growth Fund and the Schroder Life QEP Core Global Equity Fund

ii The pension scheme’s matching assets will be invested in a combination of the Schroder Life Sterling Liquidity Plus Fund and Schroders pooled Liability Driven Investment (LDI) funds

iii Over 200 UK pension scheme managers, trustees and independent consultants took part in the survey in November 2012

 

For further information, please contact:

Estelle Bibby, Senior PR Manager

Tel: +44 (0)20 7658 3431/ +44 (0)7770 496163 estelle.bibby@schroders.com

Notes to Editors:

For trade press only. To view the latest press releases from Schroders visit: http://ir.schroders.com/media

Schroders plc

Schroders is a global asset management company with £236.5 billion (EUR279.7 billion/$359.2 billion) under management as at 31 March 2013. Our clients are major financial institutions including pension funds, banks and insurance companies, local and public authorities, governments, charities, high net worth individuals and retail investors.

With one of the largest networks of offices of any dedicated asset management company, we operate from 33 offices in 27 countries across Europe, the Americas, Asia and the Middle East. Schroders has developed under stable ownership for over 200 years and long-term thinking governs our approach to investing, building client relationships and growing our business.

Further information about Schroders can be found at www.schroders.com.

Issued by Schroder Investment Management Ltd, which is authorised and regulated by the Financial Conduct Authority. For regular updates by e-mail please register online at www.schroders.com for our alerting service.