Reviewing the impact of your pension scheme’s Investment Strategy
How the assets of a pension scheme are invested is very important. For example, are they mostly invested in growth assets such as equities, or in more defensive assets such as bonds? The investment strategy and associated level of risk is the key driver of changes in scheme deficits, and therefore of company cash deficit recovery contributions.
In our report “Pension Scheme Valuations - Challenges and Opportunities in 2015” we highlighted the impact of falling long term Gilts yields on pension scheme valuations and 5 actions for companies to consider for their defined benefit pension schemes.
In this paper we consider the first possible action: Reviewing the impact of your pension scheme’s Investment Strategy.