Consultancy Services
Investment Services
The flight to gilts, especially index linked gilts, and the
resultant real interest rate decline is well documented. Pressure
on trustees to minimise risk at the expense of long term return
adds to company cost and a more balanced asset strategy is
required.
Over
recent years the larger scheme investment strategy has developed
from the traditional equity / gilt split through duration matching
bond strategies, to installing a swap overlay to remove duration
risk to leveraged swap structures which reduces risk but leaves
more of the assets to invest in the search for greater
returns.
These more
sophisticated approaches can increasingly be adopted in a cost
effective manner for smaller schemes to the benefit of
all.
PCS
advises companies on more sophisticated asset and liability
management strategies and vitally, which approach to
use.