Schroders Solutions selected by Merseyside Pension Fund to manage £3.8 billion equity protection strategy

Schroders Solutions today announces it has been selected to implement a £3.8 billion equity protection strategy for the Merseyside Pension Fund following a successful selection process.

Since their appointment by the Northern LGPS framework, Schroders collaborated extensively with Merseyside to design a solution which aims to safeguard the scheme’s equity portfolios from any downturn, ahead of its triennial valuation in 2025.

The strategy enables the scheme to maintain its equity exposures in order to meet its long-term performance objectives, while effectively managing downside risk. Moreover, it provides support for the fund’s private asset positioning, ensuring a balanced allocation between liquid and illiquid exposures, even in the event of a sell-off in listed markets.

Current market dynamics and solution design created a prime opportunity to implement the protection strategy in a cost-efficient manner.

James Barham, Executive Chairman, Schroders Solutions, said: “We are delighted to have been selected to work with Merseyside on this important project. Developing innovative solutions that work in partnership with the scheme’s investment strategy is one of our core competences and we look forward to developing our relationship over the coming years.”

Peter Wallach, Director of Pensions, Merseyside Pension Fund said: “We are very pleased with the advice and support of Schroders Solutions in working with us to implement an equity protection strategy that aligns with changes to our investment strategy and provides some stability in the funding level ahead of next year’s actuarial valuation.”