LGIM’s defined benefit capabilities

The UK defined benefit pension scheme landscape is constantly changing.  Although the challenges facing each individual scheme are unique, there are themes which will be common to most schemes:

• As schemes mature, they are becoming increasingly cashflow negative, which makes it harder to balance competing requirements for portfolio liquidity
• Risk management becomes the focus and trustees will need to understand what this means for the types of investments they should hold 
• Schemes are increasingly seeking to incorporate ESG factors and responsible investment considerations into portfolios
• The changing economic and market background will influence sponsor contributions, asset performance, and the behaviour of members who are deciding when to take retirement
• Many schemes are still at the stage in the journey which requires them to grow their assets and improve funding levels

At LGIM, we combine our extensive asset management and insurance expertise to manage each scheme’s journey to endgame, using the strategies most appropriate to their particular circumstances.

At every stage along the journey, we aim to help our clients manage their schemes as efficiently and as sustainably as possible, reflecting our broad ESG investment capabilities as part of our purpose to create a better future through responsible investment. Our scale and breadth of offering and expertise enables us to work with schemes of all sizes, helping to create efficient solutions for each.