Schroders Solutions Chosen by Merseyside Pension Fund for £3.8 Billion Equity Protection Initiative

Schroders Solutions Chosen by Merseyside Pension Fund for £3.8 Billion Equity Protection Initiative

(IN BRIEF) Schroders Solutions has been selected to implement a £3.8 billion equity protection strategy for the Merseyside Pension Fund. This collaboration, part of the Northern LGPS framework, aims to safeguard the fund’s equity portfolios from market downturns ahead of the upcoming triennial valuation in 2025. The strategy allows the pension fund to maintain equity exposure while managing downside risks and ensuring a balanced allocation between liquid and illiquid assets. James Barham, Executive Chairman of Schroders Solutions, expressed excitement about the partnership, while Peter Wallach, Director of Pensions at Merseyside, highlighted the alignment of the strategy with their investment goals. This follows other successful appointments for Schroders Solutions in the pension fund sector.

(PRESS RELEASE) LONDON, 25-Sep-2024 — /EuropaWire/ — Schroders Solutions has been appointed to develop a £3.8 billion equity protection strategy for the Merseyside Pension Fund, following a competitive selection process. This partnership, initiated under the Northern LGPS framework, has allowed Schroders to work closely with Merseyside to craft a solution aimed at shielding the fund’s equity portfolios from potential market downturns in anticipation of its 2025 triennial valuation.

The strategy will enable the pension fund to retain its equity investments, supporting long-term performance goals while effectively mitigating downside risks. It also enhances the fund’s private asset allocation, striking a balance between liquid and illiquid holdings even during market sell-offs.

In light of current market conditions, the design of this solution presents an optimal opportunity for cost-effective implementation.

James Barham, Executive Chairman of Schroders Solutions, expressed enthusiasm about the collaboration, stating, “We are thrilled to partner with Merseyside on this vital initiative. Crafting innovative solutions that align with the fund’s investment strategy is central to our mission, and we look forward to strengthening our partnership in the years ahead.”

Peter Wallach, Director of Pensions at Merseyside Pension Fund, added, “We appreciate the insights and support from Schroders Solutions in developing an equity protection strategy that aligns with our evolving investment approach and helps stabilize our funding level as we approach next year’s actuarial valuation.”

This announcement comes on the heels of several recent successes for Schroders Solutions, including managing Metfriendly’s investment portfolio and being appointed fiduciary manager for the Merchant Navy Ratings Pension Fund, along with overseeing the Tesco Defined Benefit Pension Scheme’s principal investments.

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Schroders Solutions

Schroders Solutions is a £220.8 billion global capability with employees in the UK, US, Singapore, and Germany. Our dedicated solutions experts provide investment and advisory services to public and corporate pension schemes, official institutions, insurance companies, individual investors, intermediaries and wealth providers worldwide. Solving investment problems is integral to what we do. We draw on our knowledge and experience as a global provider to build bespoke investment solutions and strategies. We partner with our clients to understand their investment challenges and construct investment portfolios that deliver their desired financial outcomes. Our consultative approach draws on both Schroders’ investment skills and those of the wider investment industry. Schroders Solutions offers Fiduciary Management, Outsourced CIO, liability, duration and cashflow driven investing, as well as derivatives-based growth strategies. Our solutions are accessible to clients of all sizes through a flexible approach to implementation, sensitive to their needs and objectives.

Schroders plc

Schroders is a global investment management firm with £773.7 billion (€912.6 billion; $978.1 billion) assets under management, as at 30 June 2024. Schroders continues to deliver strong financial results in ever challenging market conditions, with a market capitalisation of circa £6 billion and over 6,000 employees across 38 locations. Established in 1804, the founding family remains a core shareholder, holding approximately 44% of Schroders’ shares.

Schroders has benefited from a diverse business model by geography, asset class and client type. It offers innovative products and solutions across four core businesses; Public Markets, Solutions, Wealth Management and our private markets business Schroders Capital. Clients include insurance companies, pension schemes, sovereign wealth funds, high net worth individuals and foundations. Schroders also manages assets for end clients as part of its relationships with distributors, financial advisers and online platforms.

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SOURCE: Schroders plc