Category: DB

Constructing buyout-ready portfolios for the endgame

As defined benefit (DB) schemes adopt a holding pattern ahead of a potential buyout, our Solutions team – making use of their modelling frameworks – share their insights into how they believe schemes can best invest to meet their objectives.

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With dramatically improved funding levels, thanks in large part to the significant rise in gilt yields over the past 18 months alongside a partial recovery in risk-asset prices, the DB market is approaching an inflection point. The demand from schemes that are already – or soon will be – in surplus on a buyout basis is a multiple of the annual capacity of the pension risk transfer (PRT) market.

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