72: DB: Is your scheme a well-oiled machine?

Unfortunately, and as much as we might like it to be the case, there is no miracle elixir for defined benefit schemes. Rather than hoping for magic, we’ve identified some tried and tested methods for making sure schemes run like well-oiled machine – mixed metaphors aside. 

Studies have long shown that asset allocation is hugely important, typically accounting for the vast majority of the variation in portfolio returns over time. So focusing on asset allocation, alongside rigorous risk management and cost control within a strong governance framework, is what will drive improved outcomes for schemes. That in turn can create a more stable corporate balance sheet and improve benefit security for members. However, we often see significant time spent picking lots of different investment managers – either directly or via a fiduciary manager – who come with the promise of added value, despite there being no comprehensive evidence either way.

In this conversation, we discuss the key ways defined benefit schemes can improve their effectiveness.

·         Lisa Purdy, Head of Fiduciary Distribution

·         Mark Vickery, Client Director

·         Eliza Grimond, Content Manager

We want to hear from you! Email us at mark.chappel@lgim.com with your thoughts on the podcast and any suggestions of the guests or types of content you’d like to see covered.

This podcast is intended for investment professionals, and shouldn’t be shared with a non-professional audience. This podcast should not be taken as an invitation to deal in Legal & General investments. Any views expressed during this recording belong to the individuals and are based on market conditions at the time of recording, and do not reflect the views of Legal & General Investment Management. Legal & General Investment Management is authorised and regulated by the Financial Conduct Authority. Legal & General Investment Management, One Coleman Street, London, EC2R 5AA. Register in England no. 2091894. All rights reserved. No part of this audio may be reproduced in whole or in part without the prior written consent of Legal & General Investment Management.