Redington has launched a new ‘MOT’ for pension trustees to help them ensure that their strategies are suitable and on track.
The investment consultant’s new Pension Pitstops service provides an independent assessment based on seven key areas that can impact the scheme’s overall health.
- Goals & Objectives
- Sustainable Investment
- Risk Management
- Investment Strategy
- Liquidity Management
- Operational Efficiency
- Tech-based Governance
The service launches amid a challenging backdrop for DB schemes. Equities and bonds have had their worst start to a year ever , and inflationary concerns look set to continue.
As well as a tailored report, with ratings provided against each criterion via an intuitive traffic-light system, trustees will receive bespoke, independent guidance on how to tackle any problem areas, enabling schemes to put plans in place to address them before they become too difficult or costly to overcome.
If trustees have already identified a specific area they’d like to focus on – such as sustainable investment or interest rate hedging – Redington can provide a bespoke ‘fast track’ assessment, paired with recommendations.
Pension Pitstops is based upon Redington’s framework-based approach to strategic decision-making, through which it has been supporting its clients with more than £600bn AUA in realising their investment goals for well over a decade. The service aims to bring this tried and tested approach to a broader range of pension schemes, helping more trustees secure better outcomes for their end-beneficiaries.
Patrick O’Sullivan, Head of Investment Consulting at Redington, said: “For a pension scheme – particularly one on the road to their ‘endgame’ – a ‘set and forget’ strategy simply isn’t enough. Rising inflation, heightened market volatility and growing climate regulations are all timely reminders of the need to occasionally pause for breath and make sure that things are on track.
“It’s therefore crucial that trustees take stock of where they are, where they’re going and whether they have everything in place needed to get there. By providing trustees with a point-in-time snapshot of the overall health of their scheme, Pension Pitstops helps them to easily pinpoint potential pressure points and chart the smoothest possible course forward.”
