Mercer signs up pension scheme for de-risk strategy

Pensioner with caneThe trustee of Survitec Group's pension scheme has chosen consultancy Mercer to manage its investments as the scheme reduces its risks and progresses to a fully funded position. Survitec, which is an Irish company that makes marine survival equipment such as life rafts, has £43m of assets in its pension pot. Mercer said the scheme had been taking advantage of market rises to de-risk its assets on an ad hoc basis, but realised the strategy “could be made more efficient by delegating certain elements to Mercer”. Mercer has devised a “de-risking flight path” that operates within a risk framework appropriate for Survitec's scheme. The solution will include switching some of Survitec's equity investments to passive management. “The dynamic de-risking solution offered by Mercer allowed the trustee to retain control of the key decisions for the scheme, whilst ensuring opportunities for the scheme to bank gains and de-risk were capitalised upon,” said David Wilman, chairman of the trustee. ©2011 fund europe

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