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.
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.
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.