Endgame solutions

Strategies for buyout, low dependency, and run-on for defined benefit pension schemes

Endgame investment strategy design

We help pension schemes get ‘endgame fit’, drawing on our practical experience to design strategies tailored to their goals. Whether focused on buy-out or purposefully running on, we deliver solutions that align with each scheme’s long-term objectives.

Complete investment toolkit

Our Liability Driven Investment (LDI) and Cashflow Driven Investment (CDI) capabilities form the core of a robust toolkit. By managing risk and delivering stable cashflows, we create a solid foundation for your scheme’s future, whatever the chosen path.

Total portfolio solutions

We manage the full investment strategy for schemes, ensuring streamlined, cost-effective implementation. Acting as implementation manager alongside third-party advisers, or providing full fiduciary management, we help you reach endgame goals with confidence.

Explore endgame insights

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The Schroders Retirement Benefit Scheme

A case study on running-on and releasing surplus

This case study details Schroders' implementation of an innovative 'run-on' solution for its pension scheme. The scheme utilises the surplus from its Defined Benefit (DB) section to partially fund ongoing contributions for the Defined Contribution (DC) section.

Scheme size
£640m
Target return
Gilts + 1.2% p.a
Surplus release
c. £8m p.a.

Pathways to your endgame

Low dependency

Under this approach, your scheme continues to operate, managing its assets and liabilities over time. The focus is on maintaining solvency and meeting pension obligations with low levels of investment risk.

Buyout

An insurance company takes over the liabilities of your scheme, providing a secure and guaranteed income for all members. This allows the sponsor to remove the pension obligation from its balance sheet.

Run-on

Your scheme continues to operate with the intent of investing beyond full funding on a buyout basis. Surpluses can then be shared gradually between members and, potentially, the sponsor over the medium to long term.