Clear, Reassuring Solutions
this way
If you are one of the many UK pension schemes in a difficult funding position and aren’t sure how to navigate the path ahead, this series is for you.
Pillar 1 – Context Clarity
In Pillar 1, we discuss the importance of establishing a framework that clearly sets out your long-term funding target, your time horizon for getting there and the amount of risk you are prepared to take along the way.
P1.1: Don’t Fear Complexity: Overcome it
Your journey to full funding begins by taking a step back, drawing back from the details and asking the right high-level questions. This will help you gain clarity on what you are relying on to achieve your funding target – and what deserves most of your attention.
P1.2: Take a long-term view before you run out of time
Many trustees are caught in a cycle of short-term thinking. This is totally understandable – the valuation cycle of trying to get each contribution schedule over the line can encourage a shorter-term time horizon.
P1.3: Take the first step and keep checking on progress
In the first part of this series, we talked about the importance of clarifying your context and unravelling the complexity around getting where you want to be.
Pillar 2 – Portfolio Construction
In Pillar 2, we look at how to work within and make the most of the framework described in pillar 1, by building the right portfolio to achieve these goals and taking all decisions in the context of your funding objectives.
In Pillar 2, we look at how to work within and make the most of the framework described in pillar 1, by building the right portfolio to achieve these goals and taking all decisions in the context of your funding objectives.
P2.1 Align every decision with your objectives
In Pillar 1, we discussed the importance of establishing a framework that clearly sets out your long-term funding target, your time horizon for getting there and the amount of risk you are prepared to take along the way.
P2.2 The optimal portfolio goes beyond just risk and return
Once you have your risk management framework and funding plan in place, it is time to start building the investment portfolio that will get you from where you are today to your eventual funding target.
P2.3 When things go wrong – a contingency plan to get you back on track
In the first part of this series, we talked about the importance of clarifying your context and unravelling the complexity around getting where you want to be.
Pillar 3: Operational and Cost Control
In pillar 3, we explore ways trustees can focus on important issues by automating day to day processes. We also look at how some small quick changes could save you millions in the long run.
P3.1 “Alexa, implement our investment strategy.”
In Pillar 1, we discussed the importance of establishing a framework that clearly sets out your long-term funding target, your time horizon for getting there and the amount of risk you are prepared to take along the way.
P3.2 Delegate to specialists
In Step 1 of this pillar, we talked about freeing up trustee bandwidth to focus on what really matters: strategy. To do this, some decisions need to be automated so assets can be moved in line with your desired targets more efficiently.
P3.3 Quick wins that could save you millions
We have talked throughout this series about how to improve trustee board efficiency and how small tweaks to scheme governance can fundamentally improve your control and oversight.
