Trustee Investment Consulting

Alongside the contributions negotiated from the sponsoring employer, investment policy is the key financial decision for pension scheme trustees. As defined benefit schemes mature, and in some cases close to new entrants, investment policy takes on even greater significance in determining whether trustees can meet the benefit promises made. In the growing number of defined contributions schemes, the investment options that trustees make available to members, and the communication of these options, are vital in ensuring that members and their dependents receive a reasonable level of income in retirement.

LCP has long been at the forefront of the design and implementation of investment strategies designed to meet the requirements of trustees. While there are common factors facing some trustees, the particular circumstances of each scheme in terms of the maturity, cash flow profile and strength of the employer's covenant mean that a “one size fits all” approach is rarely successful.

LCP has developed an innovative range of interactive tools to assist trustees in setting investment strategy, considering both the liabilities and the attractiveness of various traditional and alternative asset classes. This is backed up by our highly rated manager research, designed to help our clients to identify and access true skill where it exists. Input from our employer covenant analysis team can also help our consultants in advising trustees on how to identify the appropriate level of investment risk they should take on in order to generate sufficient investment returns.