LGIM's DB capabilities
LGIM is one of the largest pension fund managers in the UK1, supporting DB pension schemes on their journey towards endgame. We understand how important it is to strike the right balance between short and long-term objectives. And we work closely with our clients to manage the necessary risks as they strive to pay members’ pensions, maintain funding levels, and construct the way forward to their preferred endgame destination.
Meeting the challenges for UK DB pension schemes
The DB pensions landscape is changing. In recent years, significant moves higher in interest rates have led to dramatically improved scheme funding levels. These shifting tectonic plates of markets and funding positions have resulted in a similarly seismic shift in DB scheme strategy, with endgame solutions now front and centre of scheme agendas. Schemes are also increasingly seeking to incorporate responsible investment considerations.
We are seeing three preferred endgame choices emerging from conversations with our DB clients:
Buyout
First, there are schemes wishing to ‘lock in’ the strong funding positions they currently have, with the focus on progressing towards buyout as soon as possible
Run-on
At the opposite end of the spectrum, a number of trustees are clear that they want to ‘run on’ their scheme in perpetuity
Both
There is also third and significant group of well-funded schemes that are keen to run on for now, while keeping buyout in mind over on a longer-term horizon
Bridging the gap to your endgame
At LGIM, we combine our extensive asset management and insurance expertise to manage each scheme’s journey to endgame, using the strategies most appropriate to their particular circumstances. Whether your scheme is focused on buyout, run-on or both, Legal & General is here to help you construct the way forward by sharing our investment and insurance expertise in DB endgame solutions.
You choose the endgame, we’ll build the bridge
Buyout, run-on or both? Whatever your scheme’s preferred destination, we’ll help you construct the way forward.
L&G’s inaugural Endgame Insights report for DB schemes
A comprehensive overview of the latest market conditions and solutions-focus for DB pension schemes approaching their endgame.
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Latest insights
Latest DB blogs
Tailored content for DB schemes. Includes our latest articles, market views, podcasts, videos, webinars and more.
Latest DB research
Read all our DB whitepapers. These are our in-depth quarterly research articles on the topics that matter most for DB schemes.
Webinar: Surplus to requirements?
Why surpluses are back on DB scheme agendas.
What do the terms ‘run-on’ and ‘surplus’ actually mean?
With surplus extraction now a realistic proposition for many DB schemes, 'run-on' could be an increasingly popular endgame option.
Liability-Driven Investment
Pooled and segregated investment solutions to hedge interest rate and inflation risk
Fiduciary Management and OCIO
Buy and Maintain Credit
Aiming to generate cashflow, preserve capital and harness the long-term credit risk premium
Pension Risk Transfer
A full range of pension scheme insurance from buy-ins, buyouts and longevity insurance to bespoke solutions and de-risking innovations
Our awards
Get in touch
Mark Johnson
Head of UK - Institutional & Wholesale
Lisa Purdy
Head of DB Solutions Distribution
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Key risks
The value of any investment and any income taken from it is not guaranteed and can go down as well as up, and investors may get back less than the amount originally invested. The risks associated with each fund or investment strategy should be read and understood before making any investment decisions. Further information on the risks of investing is available from LGIM’s Fund Centres.
While LGIM has integrated Environmental, Social, and Governance (ESG) considerations into its investment decision-making and stewardship practices, this does not guarantee the achievement of responsible investing goals within funds that do not include specific ESG goals within their objectives.
Awards should not be considered a recommendation. Past performance is not a guide to the future.
1. Source: IPE Research 2022, by AUM