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Industry Voice: Staying in control of your objectives with fiduciary management

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Industry Voice: Staying in control of your objectives with fiduciary management

What the new long-term funding target means for trustees and how good governance can help them stay in control of this target…

Setting a long-term funding target (LTFT) will be an important focus for many trustee boards this year. In this paper, we look at what this new target means for trustees and demonstrate how good governance can support trustees in staying in control of this target.

What is the long-term funding target?

This year's annual funding statement from The Pensions Regulator set an explicit expectation for schemes to think about investing and funding towards an LTFT. For the first time, there was a strong steer for trustees to think beyond technical provisions, to consider a target which reflects their ultimate objective, such as self-sufficiency or buyout. We believe that thinking about your scheme in this way is vital for long-term success, but it's not without challenge - often there is a stark difference between a technical provisions and a self-sufficiency or buyout basis.

Regardless of the target that has been set however, we believe that an essential element for success is the implementation of a measurable plan in place to get there.

Watch how Schroders can help achieve your long term objectives

Important information:

This document is intended to be for information purposes only and it is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. No responsibility can be accepted for errors of fact or opinion. Reliance should not be placed on the views and information in the document when taking individual investment and/or strategic decisions. Past performance is not a reliable indicator of future results, prices of shares and the income from them may fall as well as rise and investors may not get back the amount originally invested. Schroders has expressed its own views in this document and these may change. Issued by Schroder Investment Management Limited, 1 London Wall Place, London EC2Y 5AU, which is authorised and regulated by the Financial Conduct Authority. For your security, communications may be taped or monitored. CS1525h 

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