Press Releases

Superfunds have come of age, says Hymans Robertson as the firm releases its latest report. Completed deals over the past two years have helped to build understanding and confidence for future transactions with the market perceptions of superfunds transformed. The report argues that opinions have shifted from widespread scepticism to a place where superfunds are widely viewed as a valuable addition to the market.

Lara has vast experience and knowledge of the risk transfer market and joined Hymans Robertson in 2022 as a Partner.  She was previously at Scottish Widows where she was Head of Origination and Operations for their bulk annuity team.  During her career she has played a central role across a range of risk transfer transactions including a £30m buy-in for the Andrews Sykes Pension Scheme and leading the Scottish Widows’ role in £15bn of longevity swaps for the Lloyds Bank Group Pension Schemes.

“We support the Chancellor’s drive for scale and consolidation of lower value legacy default pensions. Larger arrangements provide better value for members and scale is becoming increasingly important in accessing the most attractive investment opportunities for DC pensions scheme savers...

“Firstly, in regard to pooling. We believe this should be completed as quickly and extensively as possible, where it’s achieving clear benefits for LGPS funds but with sensible exceptions where moving assets would incur unnecessary cost or waste. There is then the expectation that the pools will then have complete control over the implementation of those strategies, and management of all assets, with funds only able to set very high-level investment objectives, and maybe a strategic asset allocation if they want. This is a monumental change for the funds and likely unpopular. Requiring the Administering Authorities to take advice on setting investment strategy from the pools, who will then implement the strategy, we believe introduces a potential conflict of interest and may lead to sub-optimal strategies that ultimately cost the LGPS...   

Rohan has more than 10 years’ experience in the GI industry in areas including energy, utilities and automotive. He also has substantial expertise in business transformation and operational efficiency. Before joining Hymans Robertson, he worked at PWC and, most recently, Willis Towers Watson where he supported clients with pricing, predictive analytics, enterprise risk management, qualitative and quantitative risk analysis, and long-term forecasting.  

Harsh joins Hymans Robertson with over five years of industry experience, most recently at KPMG. He has also held positions at Kuwait Reinsurance Company and Willis Towers Watson. His expertise spans across risk management, reinsurance, and strategy. 

“We support the Chancellor’s drive for scale and consolidation of lower value legacy default pensions. Larger arrangements provide better value for members and scale is becoming increasingly important in accessing the most attractive investment opportunities for DC pensions scheme savers...

In April 2024, the Teachers’ Pension Scheme (TPS) and Scottish Teacher’s Pensions Scheme (STPS) costs increased by c.20% for TPS and c.11% for STPS. Benefits earned by teachers remain unchanged; in essence schools are now paying more for their teachers to receive the same benefits. The latest statistics suggest that many independent schools have already started assessing their pension options.

“US equity markets surged yesterday as investors were buoyed by potential tax cuts and a lighter-touch approach to regulation under a Trump presidency. Treasury yield also rose sharply, adding to October's rise, as both stronger near-term growth and potential inflationary pressures from trade tariffs and a crackdown on migration, led to expectations that interest rates might stay higher for longer. US bank stocks, in particular, rose strongly on the back of higher-for-longer rate expectations and looser regulations, with the oil and gas sector also benefitted. The Japanese yen, euro, Mexican peso all fell. The Japanese equity market benefitted from yen weakness while European markets sagged in anticipation of more difficult trading conditions ahead for some of the region’s largest manufacturers, with German autos particularly exposed...

Commenting ahead of the Bank of England base rate change, Chris Arcari, Head of Capital Market says:

“Despite the larger than expected rise in net spending unveiled in the autumn Budget, and the OBR's forecast of higher near-term inflation as a result, the Bank of England (BoE) is expected to lower rates 0.25% p.a. tomorrow. Headline inflation came in at a below-target pace of 1.7% year-on-year in September and while still elevated, service sector and wage inflation are coming down more quickly than the BoE anticipated in their previous monetary policy report. This opens the door for the BoE to lower interest rates, while still maintaining a relatively restrictive policy stance - that is, real short-term rates would remain materially positive even after a 0.25% p.a. cut. Looking further out, the front-loaded nature of the spending and the OBR's forecast impact on near-term growth and inflation has seen the market shift to expect a slower pace of rate cuts from the Bank of England.”

A change in key Trustee or Company stakeholders can significantly impact a DB Pension Scheme’s endgame investment strategy, says Hymans Robertson. It warns that a change of personnel can transform the objectives the DB scheme is trying to achieve. As the firm releases the latest update to its Excellence in Endgame series, it outlines several scenarios – change of stakeholder, sponsor covenant and even fluctuations in the cost of delivering endgame – which can transform the original endgame plan.

“The budget announced today is bold and ambitious with a clear goal of stimulating sustainable long-term growth, in partnership with enterprise. After almost three decades, there are echoes of the 1997 and 2000 Brown budgets combining the focus on enabling long-term investment on health, education and now the energy transition plus the return of a flavour of the ‘Golden Rule’ that enables borrowing for long term investment. Ten years of sustained growth followed the early Brownite budgets, that’s what the Chancellor will be banking on this time too, and with the ambition for material sustained public investment the narrative is clear.