Strategic alignment

without twists and turns

Overview

To succeed, you first need to define what success is, and only then can you put in place a plan to achieve it.  But too often this hasn’t been discussed, and sometimes there can be disagreement.  Our systematic, framework-based approach to investment strategy keeps you focussed on the things that really matter, and helps you keep all parties on the same page.

The Team

Ian Mills
Neha Bhargava

Dropping confidence

and rising tensions

Despite being close to fully funded on a buyout basis, a £120m scheme suffered significant declines in its funding position in 2008. Sponsor covenant also deteriorated during the financial crisis, leading to tensions between the sponsoring employer and trustee board.

Why appoint us?
Redington was appointed in 2010. We worked with the trustee board and sponsor to articulate and agree the scheme’s key strategic objectives and constraints. They were recorded in a succinct document referred to as the Pension Risk Management Framework (PRMF).

Moving forward

Working together

On an ongoing basis, the PRMF provided a robust framework for all parties to monitor the Scheme’s progress against the agreed parameters, staying focussed on the big picture. It also served as the basis for designing a dynamic risk management strategy to keep the scheme on-track to achieve its objectives.

 

Noting the governance constraints of a small scheme, this strategy was implemented via an innovative structure with an asset manager that enabled the trustees to respond quickly to changes in market conditions should the scheme be off track.

The robust framework along with an effective governance structure helped to build a stronger relationship between the trustees and the sponsor, enhanced the scheme’s governance model and improved the efficiency of the investment strategy.

RESULTS

As a result, the scheme’s funding level has increased from around 80% to around 100% (on a self-sufficiency basis) whilst reducing risk from by around 85%.  All of this was achieved with relatively low levels of sponsor contributions.

The trustees are now actively discussing end game solutions for the scheme, including a buy-out.

Redington helped the trustees to apply a collaborative and integrated approach to scheme funding by bringing together investment, actuarial and covenant advice in a coherent manner
Rita Powell, Chair of Trustee Board, GHG Pension Plan

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Give us a call

we'll find the right answers

It all starts with a conversation. Call, email, or pop in, we’ll talk you through how we can help. Not sure we offer what you’re looking for? Get in touch anyway – we’d love to hear from you.