Schroders has launched an investment solution that is designed to increase funding level protection for smaller defined benefit pension schemes.
The Flight Path Swift solution monitors funding levels daily against pre-agreed triggers and action is taken when a trigger is met.
Mark Humphreys, head of UK strategic solutions at Schroders, says many pension funds that can access Flight Path Swift would historically have been too small too obtain this kind of solution.
“At a time when pension scheme trustees are looking for comfort that funding level risks are being managed, we have created a best practice investment solution at an affordable fee for pension schemes of all sizes…,” he says.
Pension scheme funds will be invested in a range of Schroders growth funds, while liability-matching assets will be invested in the Schroder Life Sterling Liquidity Plus Fund and Schroders pooled liability-driven investment funds.
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