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New solution launched today at de-risking seminar (June 11th)
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Bulk annuities made simpler, quicker and easier
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Shifting liability management from expensive one-off projects to a structured approach
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LDI simplified: deciding when and what to hedge with a smooth implementation
This new unique service provides schemes with a complete de-risking package and will cover three groups: bulk annuities; liability driven investment; and liability management.
Bulk annuities
Punter Southall has partnered with financial technology provider RiskFirst, to deliver a unique platform that provides insurers with direct access to the Punter Southall valuation system. This exciting new proposition removes the cost of communication and subsequent translation, but crucially the insurers’ access is ring-fenced to protect their intellectual property.
The insurer selection process is also streamlined which enables the insurers to have a clear line of sight on transaction timescales. According to the firm, this not only leads to best price, but also minimises the extent to which the price will move whilst the process is running.
Punter Southall has partnered with legal practice Norton Rose Fulbright, to provide schemes with access to pre-negotiated legal contracts, which previously were only accessible to very large schemes, dramatically reducing costs associated with implementation and once again enabling faster transactions minimising market risk.
Liability Driven Investment
Punter Southall is launching a streamlined LDI solution, which aims to simplify the product for trustees, investors and reduce the risks associated with delays in decision making. The solution will replace the timely selection process with a targeted selection exercise, supported by the firm’s extensive market research, saving a scheme time and expense.
The firm will execute a streamlined approach, where information is shared in a pre-agreed format and standard documentation is available. This will ensure implementation is complete within a month, when previously it would have taken many months.
Liability Management
According to Punter Southall, liability management services are often sold only as discrete projects to be implemented now, whether as a “pension increase exchange” offered to current pensioners or an “enhanced transfer
value” exercise targeting deferred pensioners. In reality the right time for each exercise depends on the membership profile and the objectives of the scheme. Badly planned and executed exercises can disappoint in terms of the ultimate take up rates achieved.
To eradicate this, the firm is launching a new streamlined service which treats liability management as part of the journey. Punter Southall will look across a schemes whole membership and assess which options can be most efficiently implemented for each section of the population, and over which timeframes. With far greater flexibility in how benefits can be accessed, approaching liability management in this way is even more important.
Colette Christiansen, Head of De-risking Solutions at Punter Southall, said;
“De-risking is a topic on nearly every pension scheme’s agenda but can be expensive and fail to deliver on its objectives. This new service will change the current sentiment and approach that schemes take to de-risking. The journey will be different for every scheme, so you need to consider appropriate timescales and how to best utilise technology. We now have access to information that we didn’t have before and this increases opportunities, reduces costs for schemes and radically improves efficiency.”
*Cost Effective De-Risking – Punter Southall’s Unique Approach. Thursday June 11th at 9am at the British Academy, 10 Carlton House, SW1Y 5AH
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