For many UK pension schemes, the current macro-economic environment has brought their endgame into sharp focus. Whilst buyout is often seen to deliver the ‘gold standard’ of protection to members and, for many schemes remains a sensible option, trustees and their sponsors should take the opportunity to consider the alternative routes available. In this article, Adolfo Aponte, Managing Director at Cardano Advisory, explores the merits of buyout and how trustees can challenge herd mentality.

In our latest perspective piece, Michael McElligott and Hamish Reeves discuss the need for contingency planning and scenario testing as M&A starts to increase.

In this series of our bite-size videos, we consider how pension schemes and their stakeholders have been impacted by the rapid improvements in scheme funding resulting from the recent rise in gilt yields.

Is our employer covenant robust and sustainable enough? That’s a question trustees of defined benefit (DB) pension schemes in Ireland should be asking on a regular basis. While this question is always relevant to DB pension schemes, recent regulatory changes have guided trustees to look at it more closely going forward. Michael McElligott, Director, shares his thoughts.

Everyone’s chatting about ChatGPT and the march of Artificial Intelligence (AI). But what do these technology advancements mean for the pensions industry? Felix Mantz, Director at Cardano Advisory, who leads our AI initiatives, shares his insights.

As recently as last year, Scheme surpluses were not high on most Trustees’ agendas – something to be thought about in the distant future, should they arise. However, recent rapid rises in gilt yields has brought surpluses firmly onto today’s agenda.

This edition of Covenant Quarterly focuses on DEI in pension scheme boards. It also looked at the rising insolvency cases, the potential impact of collective defined contribution schemes and the 2023 Annual Funding Statement

The importance of DEI in pension scheme trustee boards is gaining momentum. We recently held a roundtable event to discuss the topic in more detail and to explore the results from the DEI survey we conducted in partnership with mallowstreet.

The Annual Funding Statement appears to factor in some of the feedback on the draft Funding Code, providing more nuanced commentary on covenant and integrated risk management.
Emily Goodridge and Christopher Heritage summarise the key points here.

In line with expectations, the Bank of England once again raised interest rates on 23rd March. This is the 11th successive increase with rates now at their highest level since 2008 at 4.25%. The recent collapse of Silicon Valley Bank and the emergency purchase of its UK subsidiary by HSBC, not to mention the Credit Suisse turmoil, serve as a timely reminder that the impact of the rapid rise in interest rates globally has not yet been fully appreciated.

The latest covenant quarterly contains an overview of TPR’s draft funding code, a datawatch look at gilt yields, how covenant and investment strategy could be linked and solvency II reform.