Briefing Notes

Briefing Note 94 - Defined Benefits: managing assets and investment strategy

This is the fourth and final Briefing Note in a series on the subject of private sector Defined Benefit (DB) pension schemes. The first explored the history of DB and the issues it now broadly faces. The second discussed the issue of governance and the growing complexity of trustees’ role. The third dealt with issues associated with valuing and managing liabilities. This Briefing Note will discuss the challenges and opportunities trustees face when managing scheme assets and investment strategy.

This final Briefing Note considers:

• The scale and growth of DB scheme assets; 
• How asset allocation has changed in recent years; 
• The factors which are influencing DB scheme investment strategy; 
• The different investment strategies at play in today’s market; 
• How trends may evolve in coming years.

This Briefing Note was sponsored by Mercer and was supported by a roundtable discussion attended by representatives from Government and industry. We are grateful to Mercer and the roundtable attendees for their support in producing this note.