Investment strategy

Impartial strategic advice, focused on your specific end goals & risks

Pension schemes need to find the most efficient way to get from their current portfolio to a portfolio that works alongside the Pensions Regulator’s new Long-Term Funding Target concept. While there are many competing solutions to get from A to B, and indeed a range of different formulations of A and B themselves, there is a need for someone to take a step back and assess all the options, from an independent point of view.

The challenge is you can get overly focussed on a particular solution and never see the bigger picture. It helps to step back and think about the current state of the pension portfolio as often the existing approach does not receive adequate challenge from those with the experience to do this.

The ability to step back and reconsider strategy is invaluable in assessing:

Whether the level of contributions being paid is appropriate
Whether the end of the journey has been adequately specified
The level of complexity (which means cost)
Whether there are opportunities to do better if you are able to move quickly
Whether governance allows us to achieve the above

What’s next for investment strategy

A new approach is called for in setting an overall plan that can take into account the wide range of solutions available.

PwC brings independence, strategic thinking cognisant of corporate objectives and a fresh approach in the world of pensions investment and strategy, delivered by a team with deep industry experience who are seeking to make the industry work better.

Our solution addresses the need to consider the range of strategy solutions agnostically through our independence. We have highly experienced investment professionals but we do not rely on selling investment research. We really understand the mindset of the corporate strategist and our team also has longstanding experience of working alongside Trustees.

Accelerating trends

The industry has accelerated on its journey toward better funding and less complexity, cost and risk

Global tailwind to de-risking

Global drivers of interest rates suggest the possibility that better DB funding is here to stay

A new set of challenges for trustees

The job of a trustee is now about managing the scheme to a conclusion which has come much closer

Whether you are a corporate seeking support on valuation or pensions strategy, or a trustee board seeking a second opinion on your approach, particularly if your existing adviser would benefit from more challenge, then we can help. We can work as a corporate strategic adviser, as part of a joint-working group between company and trustee, or as a strategic adviser to a board of trustees or to a sole trustee, either in conjunction with another adviser, or your FM, or not.

We would seek to understand your existing portfolio, any parameters already agreed for the future portfolio transition and any discussions you have had on the eventual portfolio destination, e.g. long-term cash flow matched portfolio or “price-lock” portfolio to pass to an insurer.

We would use our deep understanding of corporate strategy to help understand your risk appetite and your views on affordability as well as integrating any particular investment beliefs amongst your decision making body. Unlike other organisations we are not trying to fight the de-risking trend and seek to manage this process cost efficiently and with no more complexity than required.

For more information on how we can best support you, have a look at our investment brochure.