Schroders Solutions selected by Merseyside Pension Fund to manage £3.8 billion equity protection strategy
Schroders Solutions today announces it has been selected to implement a £3.8 billion equity protection strategy for the Merseyside Pension Fund following a successful selection process.
Since their appointment by the Northern LGPS framework, Schroders collaborated extensively with Merseyside to design a solution which aims to safeguard the scheme's equity portfolios from any downturn, ahead of its triennial valuation in 2025.
The strategy enables the scheme to maintain its equity exposures in order to meet its long-term performance objectives, while effectively managing downside risk. Moreover, it provides support for the fund's private asset positioning, ensuring a balanced allocation between liquid and illiquid exposures, even in the event of a sell-off in listed markets.
Current market dynamics and solution design created a prime opportunity to implement the protection strategy in a cost-efficient manner.
James Barham, Executive Chairman, Schroders Solutions, said:
“We are delighted to have been selected to work with Merseyside on this important project. Developing innovative solutions that work in partnership with the scheme's investment strategy is one of our core competences and we look forward to developing our relationship over the coming years.”
Peter Wallach, Director of Pensions, Merseyside Pension Fund said:
"We are very pleased with the advice and support of Schroders Solutions in working with us to implement an equity protection strategy that aligns with changes to our investment strategy and provides some stability in the funding level ahead of next year’s actuarial valuation.”
This news follows a series of successful wins including the appointment of Schroders Solutions to manage Metfriendly’s investment portfolio, being named Fiduciary Manager for the Merchant Navy Ratings Pension Fund and the outsourced principal investment manager of the Tesco Defined Benefit Pension Scheme.
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Schroders Solutions
Schroders Solutions is a £220.8 billion global capability with employees in the UK, US, Singapore, and Germany. Our dedicated solutions experts provide investment and advisory services to public and corporate pension schemes, official institutions, insurance companies, individual investors, intermediaries and wealth providers worldwide. Solving investment problems is integral to what we do. We draw on our knowledge and experience as a global provider to build bespoke investment solutions and strategies. We partner with our clients to understand their investment challenges and construct investment portfolios that deliver their desired financial outcomes. Our consultative approach draws on both Schroders’ investment skills and those of the wider investment industry. Schroders Solutions offers Fiduciary Management, Outsourced CIO, liability, duration and cashflow driven investing, as well as derivatives-based growth strategies. Our solutions are accessible to clients of all sizes through a flexible approach to implementation, sensitive to their needs and objectives.
Source: Schroders as of 30 June 2024.
Schroders plc
Schroders is a global investment management firm with £773.7 billion (€912.6 billion; $978.1 billion) assets under management, as at 30 June 2024. Schroders continues to deliver strong financial results in ever challenging market conditions, with a market capitalisation of circa £6 billion and over 6,000 employees across 38 locations. Established in 1804, the founding family remains a core shareholder, holding approximately 44% of Schroders’ shares.
Schroders has benefited from a diverse business model by geography, asset class and client type. It offers innovative products and solutions across four core businesses; Public Markets, Solutions, Wealth Management and our private markets business Schroders Capital. Clients include insurance companies, pension schemes, sovereign wealth funds, high net worth individuals and foundations. Schroders also manages assets for end clients as part of its relationships with distributors, financial advisers and online platforms.
Schroders aims to provide excellent investment performance to clients through active management. It also channels capital into sustainable and durable businesses to accelerate positive change in the world. Schroders’ business philosophy is based on the belief that if we deliver for clients, we will deliver for our shareholders and other stakeholders.Issued by Schroder Investment Management Limited. Registration No 1893220 England. 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.